Your client loves working with the account team he or she has been working with for years. Why would you want to disrupt this very successful client relationship? You probably don’t. But if you don’t you will watch as your profit margins drop year over year.
Billing clients on retainer, rather than actual time worked, is great for cash flow so it’s the preferred method for many agencies. However, if not properly managed, it can lead to serious financial consequences and diminishing profit margins.