Handling Client Relationships After a Colleague’s Passing: Flexible Billing and Hour Rollover Strategies

Losing a friend and trusted colleague can be an emotionally challenging experience. In the professional realm, it often brings about unforeseen responsibilities—such as managing their client accounts. Recently, I found myself in such a position after the passing of a close friend who was deeply involved in web development. He entrusted me with his clients, and in examining his business practices, I noticed an interesting billing approach that piqued my curiosity.

The Billing Model in Question

Among his clients, he employed a specific monthly billing structure: clients paid a consistent hourly rate, equating to a set number of hours each month, regardless of whether they utilized the full time. This approach provided predictability for both parties. However, what I found particularly notable was that any unused hours did not roll over to the subsequent month; the hours reset, regardless of whether they had been fully used.

Is This a Common Practice?

This billing method is somewhat atypical compared to the more common models, such as:

• Monthly retainer agreements: where clients pay a fixed amount for a predefined scope of services.
• Prepaid hours with rollover: where unused hours can be carried forward.
• Ad-hoc billing: charging only for actual work performed.

The choice of a fixed monthly hours package without rollover can be advantageous for service predictability but may also lead to unused hours, which represent potential revenue loss or underused capacity.

Should You Implement a Rollover Policy?

If you are considering adopting or have already implemented a similar billing model, here are some factors to evaluate:

• Client Expectations and Satisfaction: Rollover hours can provide flexibility for clients with fluctuating workloads, enhancing satisfaction and loyalty.
• Operational Efficiency: Clear policies on rollover hours can simplify workload forecasting and resource allocation.
• Revenue Predictability: Non-rollover models ensure consistent monthly income but may frustrate clients who have variable needs.

Practical Tips

• Define Clear Policies: Clearly communicate whether unused hours can be rolled over, for how long, and any limits involved.
• Offer Flexibility: Rollover options, if implemented, should be manageable and transparent to avoid confusion.
• Adjust Based on Client Needs: Some clients may prefer certainty with no rollover, while others appreciate flexibility.

Conclusion

Managing client accounts after a colleague’s passing is a sensitive and complex process, but it also offers