Retainer Agreement Template for Freelancers

What Is a Retainer Agreement?

A retainer agreement is a contract where a client pays a recurring fee to secure ongoing access to a freelancer's services. Unlike project-based work, retainers provide predictable revenue for the freelancer and guaranteed capacity for the client, making them popular in consulting, design, and marketing.

• The client pays a fixed monthly fee for an agreed number of hours or scope of services
• Unused hours may roll over, expire, or be credited depending on the agreement
• Retainers typically include priority response times and dedicated availability windows
• The agreement should specify a minimum commitment period, usually 3 to 6 months

Key Commercial Terms

Getting the commercial terms right is critical for a retainer that lasts. Price too high and the client will not renew. Price too low and you will resent the commitment. The best retainers build in review mechanisms so terms can be adjusted as the relationship develops.

• Set the monthly retainer fee based on expected hours or deliverables, not just a discount on your day rate
• Define what happens to unused hours — expiry at month end is cleanest but rollover builds goodwill
• Include a mechanism for additional work beyond the retainer scope, typically at your standard rate
• Specify payment terms — retainers are usually paid in advance at the start of each month

Termination and Review

Retainer agreements need clear exit provisions for both parties. A retainer without a termination clause can become a liability if the relationship deteriorates or circumstances change. Build in regular reviews to ensure the arrangement remains beneficial.

• Include a notice period for termination — 30 days is standard for monthly retainers
• Specify what happens to prepaid fees if the retainer is terminated mid-month
• Schedule quarterly reviews to assess scope, utilisation, and satisfaction
• Allow for rate reviews, typically annually, with 60 days' written notice of any increase

Key Takeaways

• Retainer agreements provide income stability for freelancers and guaranteed access for clients when structured correctly.
• Always define what happens to unused hours and include a clear process for work beyond the retainer scope.
• Build in regular reviews and clear termination provisions to keep the arrangement fair for both parties.