Retainer
also known as monthly retainer · recurring engagement
A recurring arrangement where a client pays a fixed monthly fee for an agreed set of services or capacity, rather than per-project. Retainers give agencies predictable revenue and clients priority access.
For example, a design studio might put a client on a $4,000-a-month retainer that covers up to 40 hours of design work, two strategy calls, and priority turnaround on requests. Instead of re-quoting every new task, the studio simply draws against that agreed capacity each month, and the client always knows what they will pay and what they will get.
Why it matters to your firm: retainers turn lumpy, unpredictable project income into steady monthly recurring revenue you can forecast, staff, and grow against. They deepen client relationships, ease the constant scramble for the next sale, and make the whole business easier to plan and to value.
- Pricing the retainer on a round number instead of the capacity you actually commit.
- Leaving 'what's included' vague, so the scope slowly expands for the same fee.
- No clear notice period, which makes the eventual exit messy and unpaid.