A client retainer is an agreement where the client pays in advance each period, usually monthly, for ongoing work or guaranteed availability. To set one up, define what the retainer covers, price it, put the terms in writing, and invoice it on a schedule.
Retainers turn one-off projects into steady income. They also raise questions both sides should answer up front: what's included, what happens when work runs over, and what happens to unused time.
Three common kinds of retainer
| Kind | How it works | Good for |
|---|---|---|
| Prepaid balance | The client pays a set amount upfront, and your invoices for work draw it down. | Variable monthly work, legal and consulting |
| Monthly service | A fixed monthly fee for a defined set of services or hours. | Marketing, maintenance, support plans |
| Availability | A fee to reserve your time, with work billed separately. | Advisors and specialists in high demand |
How to price a retainer
- Estimate the monthly work. Look at the hours or deliverables the client has needed in recent months.
- Apply your rate. Multiply by your hourly or day rate, or price the deliverables directly.
- Decide on a commitment discount. A modest discount can be fair in exchange for steady, prepaid work.
- Set a minimum term. Three to six months gives both sides time to see the value.
What to include in a retainer agreement
- Services covered, and examples of what's not covered.
- The fee and billing schedule, such as $3,500 billed on the 1st of each month.
- Hours or deliverables included each period, if any.
- Overages: how work beyond the retainer is billed.
- Unused balance: whether it carries over, expires, or partly rolls over.
- Payment terms and any late fee.
- Term and cancellation: the minimum term and notice period.
Retainer agreement template
Adapt these clauses to your business. Have a lawyer review your final agreement.
How to run a retainer smoothly
- Invoice on the same day every period, ideally automatically.
- Charge a saved payment method so the retainer pays itself.
- Share the balance with the client, so there are no surprises.
- Review the scope every quarter and adjust the fee if the work has grown.
How Clientary helps
With retainer management in Clientary, retainers are invoiced on schedule and can be charged to the client's saved card or bank account. Each client's prepaid balance is tracked, your invoices draw it down automatically, and it can top itself up when it runs low. Clients see their balance in your branded portal.
This guide and template are general information, not legal advice.
