Retainer Agreements: Building Predictable Recurring Revenue

Why Retainers Matter

Project-based freelancing means constant sales cycles and income uncertainty. Retainers provide predictable revenue and ongoing client relationships.

Types of Retainers

Hours-Based

10 hours/month at $150/hour = $1,500/month
- Unused hours don't roll over
- Additional hours billed at standard rate
- Monthly report of hours used

Scope-Based

$2,000/month includes:
- Up to 5 bug fixes
- Monthly security updates
- 1 hour strategy call
- Priority response within 4 hours

Access-Based

$3,500/month for advisory retainer:
- Unlimited email/Slack access
- Weekly 30-minute call
- Code review as needed
- No hands-on development included

Structuring for Success

• Minimum 3-month commitment
• Auto-renewal with 30-day cancellation notice
• Clear scope of what's included/excluded
• Monthly reporting on value delivered

Pricing Retainers

Retainers should be slightly discounted from project rates (10-15%) to reflect reduced sales overhead and predictability.

When to Offer

• After successful project completion
• When client has ongoing needs
• When you want stable income

Conclusion

Retainers transform feast-or-famine freelancing into sustainable business. Structure them clearly, deliver consistent value, and build long-term client relationships.