Definition
A retainer is a recurring fee a client pays to reserve a professional's availability or to prepay for a set amount of work each period. Retainers are common for lawyers, consultants, designers, and agencies. They may be a flat monthly fee for defined services or a prepaid balance drawn down as hours are used.
Also called: Retainer fee, Retainer agreement
Retainer in practice
Flat retainers provide predictable income and are billed with a recurring invoice at the start of each period. Drawdown retainers require tracking hours against the prepaid amount and reporting the remaining balance to the client.
A written retainer agreement should define what is included, what happens to unused hours, how extra work is billed, and the notice period for cancellation.
Frequently Asked Questions
How is a retainer invoiced?
Flat retainers are invoiced at the same amount each period, usually in advance. Drawdown retainers are invoiced when the prepaid balance is topped up, with a statement of hours used.