In this article, you will learn how to plan a monthly fee contract for your client.
In iClips, you can enter your monthly fee contracts within your clients' own register, and we have gathered here some tips to assist you in the strategy of creating this contract. Let’s get to it!
What is a monthly fee?
A monthly fee is a contract between agency and client that defines a term and an amount charged monthly.
How to set a value?
To define the monthly fee amount, it is necessary to make a general analysis of all possible expenses with the work that will be carried out for the agency's client.
Aspects such as a profile of the employee who will work on the project (hourly value of the employee), type of work to be done and its cost, length of time this work will require for the agency, among others, must be taken into account.
The scope of this analysis is important precisely in order to price all the work and reach a value for the agency not to have losses with this client.
Another thing that must be taken into account is the expenses that the agency will have, for example, with electricity, water, rent, equipment, among other fixed costs (everything the agency spends monthly).
This analysis is also very important for the manager to see if the amount charged for the monthly fee is covering the expenses that the agency has with this client.
The agency also has to calculate a profit margin for that client. There is no point in doing all the analysis mentioned above just to cover expenses; it is important that at least part of the amount that this client pays per month enters as revenue for the agency. Otherwise, there will be no profit.
Everything is already defined, and now what?
After taking these steps, you can reach an amount for your monthly fee contract. The last step is to create a proposal for your client.
Still need help? Just call us at firstname.lastname@example.org or on the platform chat and we will help you out!