Subscription + Performance-based Retainers

Trustless Work's Smart Escrow infrastructure provides a secure, transparent, and flexible way to manage subscription-based and performance-driven retainers. This model ensures ongoing service payments are securely held and released only upon meeting predefined performance criteria, providing confidence to both subscribers and service providers.

How it Works

Roles Involved:

• Subscriber (Client): Pays the retainer and approves milestones based on performance.

• Service Provider: Delivers ongoing services and marks milestones as complete.

• Platform/Trustless Work Escrow: Securely holds funds and facilitates transparent payment releases based on performance.

Escrow Lifecycle:

1. Initiation Phase:

   • Subscriber and service provider agree on a subscription retainer model, including regular payments and performance metrics (KPIs, deliverables).

   • Escrow contract created on Trustless Work, clearly outlining terms, milestones, and conditions for fund release.

2. Funding Phase:

   • Subscriber deposits funds monthly or quarterly into the escrow, securely holding payments for ongoing services.

3. Performance and Milestone Updates:

   • Service Provider regularly updates the status of performance milestones (e.g., monthly targets, deliverables, KPI achievement).

4. Approval Phase:

   • Subscriber reviews and approves milestones based on performance criteria.

   • If performance meets or exceeds agreed-upon KPIs, the subscriber approves milestone completion.

   • If performance criteria are not met, the subscriber can initiate a dispute or negotiate partial releases.

5. Release Phase:

   • Upon milestone approval, funds are automatically and transparently released to the service provider.

   • Partial or full fund releases can occur, depending on performance outcomes.

6. Ongoing Subscription:

   • The escrow resets each cycle (monthly or quarterly), maintaining ongoing secure payments aligned to service delivery and performance.

Benefits:

• Trust and Transparency: Payments linked directly to measurable performance, reducing risk for both parties.

• Secure Funding: Funds are safeguarded by blockchain-based escrow, mitigating disputes and improving trust.

• Flexibility: Customizable escrow conditions allow parties to define clear KPIs and flexible terms for performance-based payment adjustments.

Ideal Use Cases:

• Marketing Agencies: Monthly retainers tied to specific KPIs (e.g., traffic growth, conversions).

• Freelance Consultants: Retainer fees linked to tangible business outcomes (e.g., sales, lead generation).

• Managed Services Providers: Regular subscription payments tied to service uptime, SLA fulfillment, or other defined metrics.

Trustless Work's Subscription + Performance-based Retainers model empowers businesses to confidently engage ongoing services, ensuring mutual satisfaction and alignment through transparent, secure, and performance-driven payments.