When a client demands hourly work.
In his Entrepreneur’s Blog, Scott Allen discusses using a retainer instead of just billing clients on an hourly basis. He includes this question and answer from a PR discussion list he belongs to:
Q: I have a new prospective client that wants to buy hourly rates instead of a retainer. What reasons would you give a client why a retainer is better for them and why hourly services are not a good option for them?
A: What's the problem? Give him your hourly rate along with the minimum number or hours he has to purchase -- in advance -- every month. (Answer comes from list member Rob Frankel)