What is your policy when it comes to getting a retainer from a client?

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first of all I call mine a booking fee and my final balance gained at minimum 2 weeks prior to event is actually a nice thing and most recognize they weould rather not be bothered with having to find that elusive envelope or to scrounge together cash on a night they are celebrating and possibly having a bit of alcoholic refreshment. I have yet to have this policy become a deal breaker.
 
ahoustondj said:
If it is not for the money then one probably won't make a profit. If one do not make a profit, then it is not a business, at least not in the eyes of the IRS. I choose to do this as a business. Any business involves work. The good part is, it is work which I enjoy doing. I am not doing this for "the people" I am doing this for me, first and foremost, to make a living doing a business that I love. It just so happens that the business and the work involves people, other people for who I have to provide a service. That is my story and I'm sticking to it.
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I think most of us that do this are looking to make money on it, not lose money. Believe it or not, you're saying (and doing) the very same thing as we are - y'er just saying it different.

;)
 
DJ J Mac said:
With all due respect, what you're talking about are the old world business models, ones where the only concern is money
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Like oil companies. For them, it is about the investors - how else do you become a company with the largest profit ever - EVER! This is NOT about the people and I'm pretty certain that if people had an affordable and reliable alternative, they'd take it! In this instance, the oil company would lose because it is all about the money.
 
Flat $500 down payment, balance at the event. I don't like dealing with percentages and i prefer the bulk of the payment come at performance time so cash flow is free and clear when received. Some schools make multiple payments to avoid having to get board approval, but they take care of that internally. As long as the balance gets to me by the end of the night i'm happy.

Oh, and the date isn't booked till the down payment is received. We typically ask for it along with the signed contract.
 
DJ J Mac said:
Dude, financial goals for the business are such a small part of a successful business plan it's not even funny.

Have you ever seriously taken a look at companies like Google, Microsoft, Pixar, Nordstroms, etc? Companies that are hugely successful and profitable. They figured it out a long time ago, if you take care of people first, the profits will take care of themselves.
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Can i ask why you got into this business?
 
MIXMASTERMACHOM said:
Can i ask why you got into this business?
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Our company was started because we missed DJing from our college days and because we knew we could do a better job than the guys we were seeing at weddings. That's the short answer.
 
DJ J Mac said:
Our company was started because we missed DJing from our college days and because we knew we could do a better job than the guys we were seeing at weddings. That's the short answer.
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My point was this. You can take care of people all you want but please make sure that the people you take care of don't look to take advantage of you. Some people will try their best to get over or look to take advantage of us nice guys. I love most people but i had to learn the hard way to look out for my interest first and then see what i can do for the people.

Some of that means to make sure you get what you're truly worth and not settle for whatever someone wants to pay you. In other words you need to make sure that your business makes a certain amount of money so you can stay in business. Also you should be making enough money to be able to put some in a bank account to pay for unexpected bills that can arise as part of your business.
 
Jon Tuck said:
first of all I call mine a booking fee and my final balance gained at minimum 2 weeks prior to event is actually a nice thing and most recognize they weould rather not be bothered with having to find that elusive envelope or to scrounge together cash on a night they are celebrating and possibly having a bit of alcoholic refreshment. I have yet to have this policy become a deal breaker.
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I have the EXACT same terms in my contract...including 50% retainer/booking fee. I have also added a $50 penalty (in BOLD type on the contract) for any payments not made by the 2 week deadline. I found that people were 'conveniently' forgetting to pay. I got tired of not being taken seriously and having to chase people down shortly before the gig. I also dont care to add to the confusion/chaos of the event day, by needing them to pay me that day. I am always careful to point this clause out to people at our contract meeting and let them know we need to meet, go over all details and get final payment handled around that 2-3 week mark.
 
Randy A said:
This amount goes directly into the business account for operating expenses.
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Amen to that! We consider the money we keep back as our "Business Emergency Fund." We're keeping a minimum of 6 months of normal operating expenses in the account and are getting ready to push that up to about a 9-12 month amount. Usually there is a lot more in there but that's the minimum that we'll let our account get down to at any one time.
 
There is an easy way to get ALL the money up front and when offered, the Clients can't wait to fork out the money! Know how to sell is all I can say! I have a complete ratio as to what part goes to my business as well as what part goes directly in my pocket. This occurs once the Gig is complete.

I pay myself first after each and every Gig! All new purchases are paid for on a 6-12 month No Interest plan so I really don't have to have money in an account for new purchases. A second Account/Card with American Express does not hurt either, almost two months Interest free with no credit limit! Why use my money when I can use someone else's for free.
 
MIXMASTERMACHOM said:
My point was this. You can take care of people all you want but please make sure that the people you take care of don't look to take advantage of you. Some people will try their best to get over or look to take advantage of us nice guys. I love most people but i had to learn the hard way to look out for my interest first and then see what i can do for the people.

Some of that means to make sure you get what you're truly worth and not settle for whatever someone wants to pay you. In other words you need to make sure that your business makes a certain amount of money so you can stay in business. Also you should be making enough money to be able to put some in a bank account to pay for unexpected bills that can arise as part of your business.
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Not to worry about all of that. Our rate covers everything and we don't budge on it (no early booking, no military, no senior citizens, no paid in full, etc discounts).
 
50% down to hold booking

balance due 14x days before in FULL

no money no show plain and simple!!
all in our contract!!
 
I haven't really read through all these. I'm just offering what I do.

1/3 to book (usually $400 or $500). Balance 2 weeks before event.
The 1/3 payment, retainer, deposit, booking fee, whatever, is due with the signed contract or the contract is invalid.
 
I do half down as well.
If they accept your price, the size of the reatiner is not going to be an issue.
I've never had anyone give me grief over the 50%
but if they did, I could lower the deposit.
I like knowing that if the client cancels, I am already well paid for the day.

I dont make a big deal about WHEN the balance is paid.
Much like hiring a contractor or a handyman...some people don't like paying in full BEFORE the job is done.
I have not had a problem with not being paid at the event...
but I chalk that up to the relationship I develop with the client.
 
Just for a quick update. I just signed a contract to do a graduation party July 7th. First time in a long time for me booking an event so early. Any how we agreed on a price of $500.00 for 4 1/2 hours. He paid me $300.00 which is $50.00 more then the 50% retainers fee stated in the contract. So the balance is $200.00.

It says in our contract that a client can make the final payment the day of. Cash only prior to us setting up. I did this because some people may not feel comfortable with paying us all the money up front because they don't know us. And be afraid we won't show up and just keep their money. He noticed that part of the contract and will make the final payment the day of the event.

I posed this question for this thread because I wanted to know what some would do say for example the retainer is $500.00? Could a client sign a contract with you and just pay part of the retainer and if so what would be the minimum you would accept? How long after that would you require the client to pay the balance to satisfy the contract? Just remember please that until the retainer is paid in full the contract isn't satisfied and we're not obligated to show. What are your thoughts on that?
 
In one word, no. The booking fee is just that, a fee that is required in order to even book the date.
 
MIXMASTERMACHOM said:
Just remember please that until the retainer is paid in full the contract isn't satisfied and we're not obligated to show. What are your thoughts on that?
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There are exceptions to every rule. Money/Compensation is a consideration. It is also part of a contract. It will depend on what is written in the contract and what is agreed upon in the contract. You can have a valid contract with No Money Down. "Client agrees to pay....." is a powerful sentence in a contract.

You don't have to be afraid to ask for all the money up front, you can always negotiate down to a deposit. Do you know every retailer on the Internet when you make a purchase? Apparently not, so you send payment anyways but trust the company would deliver. There are times I am sure that you may look at a site and for one reason or another do not trust to send them your money so you shop elsewhere.
 
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