![\"Client](\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2018\/11\/Timing_contract.png\")
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It\u2019s that time of year again. And no, we\u2019re not talking about holiday spirit or next year’s resolutions (though if you want to read about planning ahead for the upcoming year, check out our article on New Year’s Resolutions<\/a>).<\/p>\n We\u2019re talking about another kind of planning\u2014the kind that pertains to companies of all sizes and shapes. We\u2019re talking about budgeting.<\/p>\n If you are a freelancer, your clients are likely busy putting together projections, goals, and contracts for the coming year.<\/p>\n As a vendor, your services are currently being evaluated and discussed. Even if you are lucky enough to have a contract signed with a particular client that covers you for future months, your performance and value are still being weighed against operational costs.<\/p>\n It\u2019s the natural cycle of business\u2014as 2024 wraps up, plans to have a more successful (read: profitable) year in 2025 are set into motion.<\/p>\n That\u2019s why it\u2019s important to get ahead of the game, get your data together, and discuss contracts with your clients.<\/p>\n <\/p>\n TOC<\/p>\n [content_upgrade cu_id=”317″]Free Download: Helpful Negotiating Tips<\/strong>[content_upgrade_button]Click Here[\/content_upgrade_button][\/content_upgrade]<\/p>\n First, let\u2019s cover the contracts you may (or could) have with clients. It might be time to upgrade to a different kind of agreement, so it\u2019s always nice to have a refresher.<\/p>\n Maybe a client needs help building out a new website, but doesn\u2019t require ongoing tech support. Or perhaps they are rolling out a new campaign and need your wordsmithing skills for marketing copy, social posts, or a relevant blog.<\/p>\n Whatever the case, project-based relationships are usually focused around one task or larger overall project. It may be for a set amount of time, or with a more lenient timeline until the project is complete\u2014either way, it\u2019s important to make sure the scope of work is clearly defined.<\/p>\n Project-based work is beneficial if you have certain months of the year when your income dips. These contracts are great to use to supplement revenue. But if you\u2019re unsure when a project will pop up (unless your client gives you an idea based on their annual plan), they can be a little unreliable.<\/p>\n Hopefully your project-based clients provide you with consistent work, but it can be unpredictable and frustrating at times.<\/p>\n Securing a retainer contract can feel like hitting the motherlode\u2014just so long as it\u2019s not abused on either side.<\/p>\n A monthly retainer is when you and your client agree upon a set amount of money to be paid every month for a somewhat-agreed-upon amount of work. Usually being on retainer means you\u2019re on call to do whatever is needed, but of course there need to be some boundaries.<\/p>\n A retainer offers a solid understanding of how much income you\u2019re gathering from that one client in a given month\/quarter\/year. For a freelancer, dependability is as good as gold, which is why a retainer tends to be the most attractive contract option.<\/p>\n With a retainer, it\u2019s important to remember two things:<\/p>\n 1) Your client is putting a lot of upfront trust (and money) into you, so it\u2019s best to not get too pushy if the hours you\u2019re putting in are a little more than you expected. Especially because\u2026 Again, retainers are wonderful because they offer some form of security. However, it\u2019s a good idea to know exactly how much time you\u2019re putting in so you don\u2019t get taken advantage of. It also gives you great leverage when you\u2019re trying to renegotiate a higher retainer (thankfully for you, that\u2019s where Timing comes in).<\/p>\n \u2018Billing actuals\u2019 sits between project-based and retainer. It\u2019s not locked into a certain task but also isn\u2019t a guaranteed amount.<\/p>\n Say your client needed help developing that website, but decides they also need ongoing tech support to fix bugs, update coding, and keep things running smoothly. If they don\u2019t go for your pitch of a retainer agreement, they may ask you to stay on to do whatever needs to be done and then have you bill for your actual hours.<\/p>\n This way you are being paid for the work that\u2019s being done, but they aren\u2019t paying a set amount every month if there are fewer issues to solve.<\/p>\n Billing actuals can feel a little less steady, but it\u2019s also nice to be compensated for the hours being put in. Plus, it\u2019s up to you to agree on an hourly rate with the client.<\/p>\n You know what else is absolutely paramount to this kind of contract? Time tracking. And you know who takes the manpower out of time tracking so you can spend more time putting in billable hours? Timing.<\/p>\n Which brings us to\u2026<\/p>\n Your approach to assessing your current agreements with clients will depend on the type of contract you have with them. In any case, using a contract amendment template<\/a> might make it easier for you to propose changes to the contract.<\/p>\n However, what is true across the board is something that is crucial for freelancers and often overlooked by full-time employees: You must log your time.<\/p>\n If you aren\u2019t, how do you know if you are over-servicing a client? In the event that they think you may actually be under-servicing them, how do you dispute that?<\/p>\n Don\u2019t wait until the end of the week, month, or year to try and tally up all the time you\u2019ve spent working for a client. Not only will that be laborious and take you painfully long, but also it\u2019s not going to be accurate.<\/p>\nDon\u2019t wait until the end of the week, month, or year to try and tally up all the time you\u2019ve spent working for a client. <\/a><\/span>Share on X<\/a><\/span>\n Using time tracking software like Timing is the only way to take that important responsibility (and worry) off your shoulders. Timing automatically tracks your time within documents, programs, and on websites, and organizes it according to the folders and rules you implement.<\/p>\n Plus, it makes it easy to enter manual time (for phone calls or work spent away from your Mac) and allows you to easily pull reports to show a client how much time you\u2019ve spent on a specific task or project. Remember, they aren\u2019t subject experts\u2014you are\u2014so they might not realize how time-consuming an assignment can be.<\/p>\n Not only does tracking your time help you defend your worth, but it can also be incredible evidence for why a contract should increase in value.<\/p>\n Have you given the client X% more in work over the past 6 months? Being able to back that up with data that you\u2019ve been collecting (and hopefully sharing with them) along the way is a great way to make your argument for a higher rate or retainer.<\/p>\nTable of Contents<\/h2>\n
Types of Contracts<\/h2>\n
Project-Based<\/h3>\n
Retainer<\/h3>\n
\n2) You\u2019re expecting to get this amount even if you and client both have a slower work month, right? So keep in mind that the workload will likely ebb and flow\u2014it should all wash out in the end.<\/p>\nBilling Actuals<\/h3>\n
Evaluating Your Existing Contracts<\/h2>\n
![\"Client](\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2018\/11\/Timing_timing.png\")
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![\"Client](\"https:\/\/timingapp.com\/wordpress\/wp-content\/uploads\/2018\/11\/Timing_infographic.png\")