What is Retainer?
A Retainer is a fixed, recurring payment agreement between a client and a service provider. It ensures ongoing access to a set amount of services or time, providing predictable revenue for agencies and consistent support for clients.
Table of Contents
Full Definition
Retainers provide financial stability for agencies by guaranteeing monthly or quarterly income.
They enable clients to secure dedicated resources and prioritized service.
Successful retainer agreements clearly define scope and expectations to avoid disputes.
Examples
Predictable cash flow
Prioritized client support
Simplifies budgeting
Benefits
Scope creep risk if not clearly defined
Requires ongoing management
Potential underutilization of hours
Common Mistakes
Define clear deliverables and review retainer terms regularly.
Conclusion
Define clear deliverables and review retainer terms regularly.