Virgil Bierschwale wrote:

> I recently got stiffed by a client and I have decided that I need to start

> billing like an attorney does by getting a retainer up front when I'm not

> working through a contracting agency.

>

> Can any of ya'll give me ideas on how such an arrangement works ??

>

> I'm assuming I get a couple of weeks worth of wages, or a few thousand and

> then I invoice against it and at a certain point, I bill them for an

> additional few thousand ??

I bill for my time, but show the retained amount on the statement. So,

say I'm going to start work for ABC Corp. Along with the contract I

collect a deposit that will cover 1.5 billing periods, and apply that to

their account. Then I work my hours, and invoice regularly. I'll remind

them to replenish their account or work will stop.

Statements will show beginning balance, invoices, payments, and ending

balance. If that ending balance goes zero or below I'll stop work

immediately and make every attempt to get another deposit ASAP.

After a while of doing this I may let the retainer run out and put them

on 2%10 Net30 terms, meaning I trust them now. Less hassle not dealing

with the accounting of the retainer, but I always start out a new client

with a retainer. I got seriously burned several years ago, by 2 clients

at the beginning of the bust, to the tune of something like $35K total.

At the time I could cover it and move on but boy could I use that money

right now.

Paul