Retainer Agreement

A retainer agreement is a contract where a client commits to paying you a fixed amount each month in exchange for a defined scope of ongoing work or guaranteed availability. Unlike project-based contracts that end when deliverables are complete, retainers run continuously until one party cancels — typically with 30 days notice.

Retainers come in two flavors. Access retainers: the client pays for priority access to your time (common for lawyers, consultants, and strategic advisors). Deliverable retainers: the client pays for a fixed set of outputs each month (common for designers, marketers, and content creators). The billing is the same, but the scope definition is very different.

For freelancers and agencies, retainers solve the revenue unpredictability problem. Instead of a ₹5,00,000 project followed by two months of no income, a ₹1,50,000/month retainer provides consistent cash flow. The trade-off: retainer rates are sometimes lower per-hour than project rates, because the client is providing volume and consistency.

Key clauses every retainer agreement needs: scope definition (what's included and excluded), monthly allocation (hours or deliverables), overage policy, payment schedule (always bill in advance), rollover rules, renewal terms, and termination process. Read the retainer contract template guide for a complete breakdown.

PropCraft's recurring invoice feature pairs well with retainer agreements — set the billing amount, schedule, and tax structure once, and invoices go out automatically each month.