Retainers Benefit Both Client and Advisor
posted on: September 8th, 2008 by: Mike
Michael W. McLaughlin, Contributing Editor of RainToday.com recently wrote in an article entitled “The One Service Every Consultant Should Offer” about the virtues of providing clients with a diagnostic assessment. The merits of his comments stand for themselves. However, one particular idea stood out above all else. Namely the suggestion that clients don’t take their advisors serious if they aren’t paying anything for the service being provided.
We just learned that lesson in spades. Over the years I have often taken client engagements without an upfront retainer. The logic was simply we are walk the talk kind of guys. We do what we say and we deliver on our promises. Not taking a retainer was symbolic of our belief in what we do and proof we were made of the right kind of clothe.
Unfortunately I have learned that is an idealistic and unrealistic way to view a client advisor relationship. Time and experience has taught me clients will listen better, return your calls in a timely fashion, value your recommendations and take the process more serious if they are writing a monthly check. Frankly, if a client isn’t willing to pay for the service and value that legitimate advisors are providing they’re not worth having as a client.
Looking back on the last several years in our business I have noticed that engagements that include a retainer work out better for the client and for us. Is this because we care more when we are getting a retainer? Hardly, we are about getting deals done. The better outcome comes from two parties collectively working on a common goal and respecting each others value.
Consider it a lesson learned.
http://www.raintoday.com/pages/2432_michael_w_mclaughlin_contributing_editor.cfm
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