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Agree 100% - there are a million reasons to love this idea and it’s the fastest growing part of my business.
1. Charge money every month on the first of the month. What could be better?
(See reasons 2-493 below
) https://twitter.com/roblabonne/status/1319835900579319809
1. Charge money every month on the first of the month. What could be better?
(See reasons 2-493 below
) https://twitter.com/roblabonne/status/1319835900579319809
2. Ease of collection - we use @PaySimple to auto bill clients. Client signs an engagement letter and billing auth and we bill monthly on the first. No waiting, no accounts receivable, no uncollectibles.
3. Smooth cash flow - really nice for a seasonal business like ours.
3. Smooth cash flow - really nice for a seasonal business like ours.
4. Guaranteed cash flow - I have not had one client fire me from the monthly service. There were a few modifications and concessions during lock down, but having ongoing cash flow helped keep my business (and clients who employ MRR models) healthy during March - June.
5. Client satisfaction - see above. Clients who enroll in monthly retainer programs are happier.
They are more likely to call when they need service and incentivized to respond to our requests for info.
In my judgement they get more value from our services.
They are more likely to call when they need service and incentivized to respond to our requests for info.
In my judgement they get more value from our services.
6. Ease of scheduling - because we are constantly up to date with them, we can work with them in our slower times of year and spread the work out.
7. Standardization of process - the more clients we take on, we continue to refine process and offer better service to all.
7. Standardization of process - the more clients we take on, we continue to refine process and offer better service to all.
8. As Rob mentioned - make your business more valuable when you sell (if you want to sell)
9. Makes hiring easier - you have a base to justify the added costs, and can feel very good bringing folks on.
Note - when your MRR exceeds your monthly nut you have a GREAT business.
9. Makes hiring easier - you have a base to justify the added costs, and can feel very good bringing folks on.
Note - when your MRR exceeds your monthly nut you have a GREAT business.
10. Story - my inspiration for charging monthly came when I quoted a price to a client for annual service and they said it was way too expensive.
I told them but that is X a month.
The client literally said, “well that’s not bad. I can do that.”
People like to pay monthly..
I told them but that is X a month.
The client literally said, “well that’s not bad. I can do that.”
People like to pay monthly..
11. So many people pay for accounting work simply to get taxes done. It’s 6 months after the end of the year, and the financials are basically meaningless at that point.
Ongoing accounting provides clients up to date books for loans, es payments and business projections. https://twitter.com/roblabonne/status/1319844919226368000
Ongoing accounting provides clients up to date books for loans, es payments and business projections. https://twitter.com/roblabonne/status/1319844919226368000
12. Mutual expectations - we are happier and clients are happier when we know what the service offering is and what it costs.
It takes money tension out of the client’s experience.
There have been times we over/under indexed and adjusted our price accordingly.
It takes money tension out of the client’s experience.
There have been times we over/under indexed and adjusted our price accordingly.
