Retainer Agreement Template for Agency Businesses (UK 2025)
Last updated: February 2025
Why Agency Businesses Need a Retainer Agreement
Agency retainers provide clients with ongoing access to creative, strategic, or digital services on a monthly basis, creating a predictable workflow for the agency and priority access for the client. The agreement must define what the retainer covers, how work is briefed and prioritised, and the important commercial question of minimum commitment periods and notice for termination. Retainers are the backbone of agency revenue stability, making these agreements commercially critical.
Key Clauses for Agency
- Monthly fee with defined deliverable outputs or hour allocation
- Briefing process and work prioritisation framework
- Minimum commitment period and termination notice requirements
- Scope boundaries between retainer and project work
Common Mistakes
- Not specifying a minimum commitment period, allowing clients to cancel after one month and undermining the agency's resource planning
- Failing to establish a clear briefing and prioritisation process, resulting in ad-hoc requests overwhelming the retainer allocation
Template Sections
- Monthly deliverables or hour allocation schedule
- Briefing and prioritisation process
- Commitment period and termination provisions
FAQ
What is a reasonable minimum commitment for an agency retainer?
Three to six months is standard for agency retainers. This gives sufficient time for the agency to learn the client's business, develop effective creative work, and demonstrate results. Include a notice period of typically 30-60 days for termination after the minimum period. Some agencies offer reduced rates for longer commitments of 12 months.
How should an agency retainer handle work that exceeds the monthly allocation?
Define a clear overage process: when the allocation is projected to be exceeded, the agency notifies the client and provides an estimate for additional work. The client can approve the overage at agreed rates, defer work to the next month, or re-prioritise existing work. Include a buffer of 10-15% above the allocation that the agency can absorb before triggering the overage process.
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Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
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