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Chapter 16: Engagement Models

How you structure your work matters as much as what you charge. The wrong structure can trap you in low-value work.


What You'll Learn

  • Advisory retainer vs. implementation models
  • Avoiding the fractional employee trap
  • Self-contained project structures
  • Using Slack Connect for boundaries

Advisory Retainer Model

The advisory model focuses on access and guidance rather than deliverables.

Structure

Component Description
Weekly meetings 1-4 hours/month with leadership
Async access Unlimited Slack/email questions
Pair programming Jump on calls as needed

How to Position

"For $60,000, we do 4 hours a month of meetings. But really a lot of it is asynchronous work—I'll jump on a call and pair program with your team if it makes sense."

Why It Works

The value isn't priced by the hour. You're paying for access to someone who's seen these problems before.

"I'm not going to charge you for how long I'm interviewing my friends. If I know the answer, I should get rewarded the same as if I had to make a bunch of calls."


The Fractional Employee Trap

The Danger Zone

Being invited to the client's Slack, given a company email, and treated like a lazy employee.

Warning Signs

Sign What's Happening
Invited to all-hands meetings Boundary erosion
Given company email Identity confusion
Waiting days for environment variables Treated as low priority
Put on phone screens without context Used as a resource
Moving Jira tickets around IC work, not consulting
"Can you attend our standup?" Embedded in their process

The Problem

"I used to do a thing where I said '$250/hour but only up to 10 hours a week on average.' You just get invited to the Slack. You just treat it as an employee, but you look like the laziest employee because you're just not pushing as much code."


Avoiding the Fractional Trap

Solution 1: Use Slack Connect

Stay in your own Slack organization:

"Have your own Slack organization. Always set up as Slack Connect where there's a single channel to contact you."

Benefits: - Everyone knows you're external - No one accidentally assigns you work - You control notifications - Clear professional boundary

Solution 2: Work in Isolated Repos

Keep your deliverables self-contained:

"Give them a private GitHub repo on their org. Your engineers can reference this. That's straightforward."

When projects have clear deliverables, you maintain control over time and perception.

Solution 3: Define Scope in Proposals

Be explicit about your role:

Instead of... Write...
"Jason will help the team" "Jason will work directly with the CTO on strategy"
"Available for questions" "Weekly sync with designated contact"
"Support as needed" "4 hours/month of meetings plus async channel"

Self-Contained Projects

The cleanest engagements have clear boundaries.

Characteristics of Clean Projects

Element Example
Clear deliverable "Prototype of X feature"
Defined timeline "6 weeks to delivery"
Specific handoff "Delivered via private repo"
Limited scope "Does not include deployment"

Example Structure

Phase 1: Discovery (Week 1-2) - Interviews and assessment - Requirements documentation - Architecture recommendation

Phase 2: Development (Week 3-5) - Prototype development - Internal testing - Documentation

Phase 3: Handoff (Week 6) - Delivery to client repo - Knowledge transfer session - Support documentation


Pilots That Roll Into Contracts

Structure pilots as the beginning of longer engagements:

"It's a 6-month contract with a 6-week cancellable period. If you don't cancel, it rolls over."

Why This Works

Traditional Pilot Rollover Structure
"2-week trial, then negotiate" "6-month contract, cancel by week 6"
Re-contracting friction Automatic continuation
Client evaluates during trial Client evaluates, default is continue
Momentum breaks Momentum maintained

The Language

"This isn't a 4-week contract. It's a 6-month contract with a 6-week cancellable period. That's your guarantee. That's what de-risks it. But it is the annual contract at the end of the day."


After Implementation: Maintenance Retainers

After delivering a project, offer ongoing support:

"For $5,000/month, I'm happy to still be on Slack, have access to your infrastructure, and debug things asynchronously."

Typical Conversion

Clients who paid $40,000 for implementation are often happy with a $10,000/month retainer—25% of the original engagement for ongoing access.

Maintenance Tiers

Tier Price Includes
Light touch $3-5K/month Monthly call, email support
Active support $7-12K/month Weekly calls, async Slack
Strategic $15-25K/month Deep involvement, proactive guidance

Transitioning from Implementation to Advisory

As you establish credibility, shift toward advisory work:

The Path

  1. Start with implementation to prove expertise
  2. Document what you deliver for case studies
  3. Build relationships with leadership
  4. Propose advisory after successful delivery
  5. Reduce hands-on work over time

The Script for Transition

"Now that we've successfully implemented [project], I want to ensure you continue getting value. Many clients find ongoing advisory helpful for optimization, team questions, and new opportunities. Here are a few options for how we could structure that..."


Setting Boundaries in Proposals

Include explicit boundary language:

Communication Clause

"Consultant will be available for asynchronous communication via [Slack Connect/Email] during the engagement. 'Unlimited' communication is subject to reasonable use. Consultant will respond within one business day to non-urgent requests."

Role Definition

"Consultant will work directly with [specific person/role]. All requests should be channeled through this designated contact. Consultant is not available for general team meetings unless specifically agreed."

Scope Boundaries

"This engagement includes [specific deliverables]. Items not listed are out of scope and would require a separate agreement."


Action Items

  1. Set up Slack Connect. If you don't have your own Slack workspace, create one this week.

  2. Audit current engagements. Are you trapped in any fractional employee situations? Plan your exit or boundary-setting conversation.

  3. Create boundary language. Write the communication and role clauses for your next contract.

  4. Design your rollover pilot. Structure your next pilot as a cancellable long-term contract.

  5. Plan maintenance offerings. Define 2-3 post-implementation retainer options.


Key Takeaways

  • Advisory retainers value access and expertise, not hours worked
  • The fractional employee trap makes you look like the laziest employee
  • Use Slack Connect, isolated repos, and explicit scope to maintain boundaries
  • Self-contained projects with clear deliverables are cleanest
  • Structure pilots as cancellable long-term contracts, not trials
  • After implementation, convert to maintenance retainers (typically 25% of project value)
  • Include explicit boundary language in all contracts

Next: Chapter 17: Client Retention & Expansion →