The ProductizeIs this client actually profitable?
Retainers look great on paper. Add the hours, the admin and the back-and-forth, and see your real margin and effective hourly rate.
The math, explained
Your real cost is every hour spent on the client, including communication and admin, times your team's hourly cost, plus other costs.
Margin is what's left of the fee. Effective hourly rate is the fee divided by all hours, which is what the client really pays per hour.
Above 50% is healthy, 30–50% is okay, and below 30% means it's time to reprice, reduce scope or cut admin.
Run the whole thing in one place
Sell productized plans with checkout, take requests through a branded portal, track time and get paid automatically.
Good questions
What's a good margin per client?
Aim for 50% or more on retainers. Below 30%, one bad month or a sick day can make a client unprofitable.
How do I reduce admin time per client?
Move requests, files, feedback and invoices into one client portal. Most of the “quick question” emails disappear.
Should I drop unprofitable clients?
First try to reprice or reduce scope. If that fails, freeing the capacity for a profitable client is usually the better deal.