Retainer Agreement
Also known as: monthly retainer · retainer fee · ongoing contract
Definition
A retainer is an upfront payment a client makes to secure a freelancer's availability for a defined period or scope of work. Common in consulting, legal, design, and marketing work. Retainers provide predictable income for freelancers.
Detailed Explanation
Retainer models for freelancers: fixed monthly retainer (client pays $X/month for Y hours of availability — even if fewer hours are used), prepaid block of hours (client buys 20 hours upfront, freelancer draws down as work is completed), and ongoing project retainer (client pays monthly for continuous services like social media management). Retainers benefit both sides: freelancers get predictable income and reduced administrative overhead (one invoice per month instead of per project), clients get guaranteed availability and priority service. Bookkeeping for retainers: track retainer payments as unearned revenue until work is performed, then recognize as income. AI invoicing tools can generate recurring retainer invoices automatically.
Freelancer Example
A freelance brand designer offers a $2,000/month retainer for ongoing design support — up to 20 hours of work, priority turnaround, and a dedicated Slack channel. The client pays on the 1st of each month. The designer tracks hours and sends one monthly retainer invoice instead of per-project invoices.