Why Offer Security Services on Retainer?

Moving beyond one-off projects to a recurring security services retainer model offers significant benefits for both your business and your clients:

Benefits for Your Firm:

• Predictable Revenue: Retainers provide a stable, recurring income stream, smoothing out cash flow fluctuations.
• Increased Client Lifetime Value: Regular engagements mean longer client relationships and higher overall revenue per client.
• Easier Capacity Planning: Knowing your monthly recurring revenue (MRR) helps forecast workloads and resource needs.
• Reduced Sales Cycle: Renewing an existing retainer is typically easier and less costly than acquiring a new project client.
• Trusted Advisor Status: Consistent interaction builds deeper trust and positions you as a long-term security partner, not just a one-time vendor.

Benefits for Your Clients:

• Continuous Security: Security isn’t a one-time fix. Retainers ensure ongoing monitoring, testing, and remediation, addressing the evolving threat landscape.
• Proactive Risk Management: Regular activities (scans, targeted tests) catch vulnerabilities before they can be exploited.
• Budget Predictability: Clients can budget a fixed monthly cost for security services rather than facing large, unexpected project expenses.
• Faster Response: Clients on retainer often receive prioritized support for urgent issues or questions.
• Simplified Procurement: A single retainer agreement covers multiple services over time, reducing administrative overhead compared to separate project SOWs.

Which Security Services Fit a Retainer Model?

Not every service is suitable for a retainer, but many core offerings in the penetration testing and vulnerability assessment space can be packaged effectively:

• Regular Vulnerability Scanning: Automated or manual scans on a monthly, quarterly, or even weekly basis.
• Web Application Scanning: Recurring checks of specific web applications.
• Network Penetration Testing (Limited Scope): Pre-defined, smaller scope tests performed periodically.
• Fractional Security Officer/Advisor: Providing a set number of hours per month for security consulting, policy review, or strategic guidance.
• Remediation Support: Allocated hours for assisting clients with patching vulnerabilities found during testing.
• Security Awareness Training (Recurring): Monthly or quarterly training modules.
• Specific Compliance Checks: Ongoing monitoring or testing related to frameworks like HIPAA, PCI DSS, or SOC 2.

Combinations of these services can form the basis of your retainer packages.

Structuring Your Security Services Retainer Model

Designing clear, value-driven retainer packages is crucial. Consider these elements:

1. Define Service Tiers: Offer different levels (e.g., Basic, Standard, Premium, or named tiers like Bronze, Silver, Gold) based on the frequency, scope, and types of services included. This allows clients to choose the level that best fits their needs and budget.
2. Specify Inclusions and Exclusions: Clearly list exactly what services, assets (IP addresses, applications, user counts), frequency, and deliverables (reports, hours of remediation support) are covered at each tier. Be equally clear about what is not included.
3. Set Minimum Commitments: Require a minimum term (e.g., 6 or 12 months) to ensure revenue predictability and allow enough time to demonstrate value.
4. Determine Pricing Model: While hourly costs inform your pricing, retainer fees should ultimately be tied to the value delivered (risk reduction, compliance, peace of mind). You can use:
   • Value-Based Pricing: Price based on the quantifiable impact your services have on the client’s business (e.g., cost of a breach avoided, savings from compliance failures).
   • Tiered Pricing: Assign fixed monthly fees to each defined service tier.
   • Consumption-Based (Hybrid): A base retainer fee plus variable costs based on specific usage metrics (e.g., number of IPs scanned beyond a certain limit).
5. Outline Reporting and Communication: Define how often clients will receive reports and updates, and the channels for communication.

Pricing Your Security Services Retainers

Pricing retainers requires careful consideration to ensure profitability while remaining competitive and clearly communicating value. As an example, a basic monthly vulnerability scanning retainer for a small business might range from $500 to $2,000 per month, depending on the scope and reporting. A more comprehensive retainer including fractional security time and limited testing for a mid-sized firm could range from $5,000 to $15,000+ per month.

• Calculate Your Costs: Understand your internal costs (analyst time, tool licenses, overhead) for delivering the services within each tier. Ensure your retainer fee covers these costs and provides a healthy profit margin.
• Research the Market: Understand what competitors are charging for similar ongoing services, but don’t let it be the sole driver of your pricing.
• Focus on Value, Not Hours: While your costs are based on time and resources, the price presented to the client should reflect the value they receive – continuous protection, reduced risk, compliance assurance. Frame the investment in terms of risk reduction ROI.
• Use Anchoring and Tiering: Present your retainer options as tiered packages. The middle or higher tiers can serve as anchors to make the lowest tier seem more affordable, or guide clients towards more comprehensive (and profitable) packages.
• Consider Setup Fees: For complex retainer setups or initial baseline assessments required before ongoing service begins, consider a one-time setup fee. This helps cover initial effort and commitment.
• Offer Add-ons: Provide optional services (e.g., additional hours of remediation, specialized testing) as add-ons that clients can select, increasing the potential deal value.

Presenting and Selling the Retainer Model

Successfully selling a security services retainer model hinges on how effectively you present its value compared to traditional project work. Avoid sending static, flat PDF quotes that make it hard for clients to see options clearly.

• Emphasize Ongoing Protection: Contrast the ‘point-in-time’ snapshot of a one-off test with the continuous, proactive defense provided by a retainer.
• Quantify Risk Reduction: Where possible, use data and examples to illustrate the potential cost of a breach or compliance failure that the retainer helps prevent.
• Make Options Clear: If you offer tiered packages or optional add-ons, ensure your pricing presentation is easy to understand. Static documents can be confusing and lead to missed upsell opportunities.
• Consider Interactive Pricing Tools: This is where specialized tools shine. Platforms like PricingLink (https://pricinglink.com) allow you to create interactive pricing experiences where clients can select retainer tiers, choose add-ons, and see the total price update in real-time via a simple shareable link. This modern approach simplifies complex options, saves you time creating custom quotes for every variation, and provides a better client experience.

While PricingLink is laser-focused on the pricing presentation and lead capture part of the process, you might need other tools for different stages. For comprehensive proposal software that includes e-signatures, contracts, and more, you might look at tools like PandaDoc (https://www.pandadoc.com) or Proposify (https://www.proposify.com). However, if your primary goal is specifically to modernize how clients interact with and select your pricing options for retainers or tiered services, PricingLink’s dedicated interactive approach offers a powerful and affordable solution.

Operational Considerations for Retainers

Implementing retainers requires operational adjustments:

• Standardize Service Delivery: Develop clear processes and, where possible, automate recurring tasks like vulnerability scanning.
• Manage Scope Creep: Clearly defined inclusions and exclusions in your agreement are vital to prevent providing services outside the retainer scope without additional payment.
• Consistent Reporting: Provide regular, clear reports demonstrating the value delivered by the retainer services.
• Capacity Planning: Ensure you have the analyst resources available to fulfill the ongoing obligations for all your retainer clients simultaneously.