How to Create Retainer Agreements That Clients Actually Sign
Three retainer clients pay me $7,500/month in guaranteed recurring income. That covers my salary, business expenses, and tax savings before I do any project work. Everything from projects is profit on top.
Retainers transformed my freelance business from feast-or-famine to financially stable. Here’s how I built them and what goes in the agreement.
Why Retainers Are Cash Flow Gold
Before retainers: My monthly income ranged from $2,800 to $14,000. I never knew what next month would look like.
After retainers: $7,500/month is guaranteed before I do anything else. That’s rent, food, insurance, and taxes covered regardless of whether new project work comes in.
The math:
- 3 retainer clients × $2,500 average/month = $7,500/month guaranteed
- My monthly nut (salary + taxes + expenses): ~$7,800
- Retainer income covers 96% of my base needs
- All project income is gravy
The Retainer Agreement Template
Here’s what I include in every retainer:
1. Scope of Services “Ongoing web development, maintenance, and optimization including: bug fixes, content updates, feature additions, performance monitoring, and technical consultation.”
Be broad enough to cover typical requests but clear about what’s excluded (like a full redesign — that’s a separate project).
2. Monthly Hours “This retainer includes up to [15] hours of work per month.”
I track time even on retainers so the client can see utilization and I can monitor profitability.
3. Monthly Rate “Monthly retainer fee: $2,750, due on the 1st of each month, payable in advance.”
Payable in advance means you get paid before doing the work. Non-negotiable for me.
4. Unused Hours “Unused hours expire at the end of each calendar month and do not roll over.”
5. Overage Rate “Hours beyond the monthly allotment are billed at $145/hour (standard rate).”
The overage rate is my standard (non-discounted) rate. This incentivizes clients to stay within hours or proactively increase the retainer.
6. Term and Renewal “Initial term: 3 months, auto-renewing monthly thereafter. Either party may cancel with 30 days written notice.”
The 3-month minimum ensures commitment. Monthly renewal after that gives flexibility.
7. Priority and Availability “Retainer clients receive priority scheduling with guaranteed 24-hour response time on business days.”
This is a key selling point — retainer clients jump the queue ahead of non-retainer requests.
8. Payment Terms “Invoice sent on the 25th, due by the 1st. Late payments subject to 1.5% monthly fee. Services pause after 7 days past due.”
How to Pitch Retainers
To existing project clients (best conversion rate):
After delivering a successful project, I say:
“Now that [project] is live, you’ll want ongoing support for updates, optimizations, and new features. I offer a retainer at $2,500/month for 15 hours — that covers most ongoing needs and guarantees my availability. Would that be helpful?”
About 30% of project clients convert. The key is timing — pitch immediately after a successful delivery when satisfaction is highest.
To new prospects:
“For ongoing needs, I offer monthly retainers starting at $2,000/month. This gives you [X hours] of priority access each month for development, updates, and consultation.”
Pricing the retainer:
Standard rate × hours × discount = retainer price
$130/hour × 15 hours × 0.90 (10% discount) = $1,755/month (rounded to $1,750 or $2,000)
I typically round to clean numbers and position at $2,000-3,000/month depending on the client’s needs and budget.
My 3 Current Retainers
| Client | Monthly Rate | Hours | Effective Rate | Duration |
|---|---|---|---|---|
| Client A (SaaS) | $3,000 | 20 | $150/hr | 18 months |
| Client B (Agency) | $2,500 | 18 | $139/hr | 12 months |
| Client C (E-commerce) | $2,000 | 15 | $133/hr | 8 months |
Average utilization: about 85% of hours are used monthly. The 15% unused is built into my pricing expectation — I account for it when setting the rate.
When Retainers Don’t Work
Retainers aren’t for every client relationship:
- One-off projects: Client needs a logo, not ongoing support. Project pricing.
- Unpredictable needs: Client might need 0 hours one month and 40 the next. Project-based is better.
- Budget-constrained clients: If $2,000/month is a strain, the relationship will be tense.
- Non-recurring work types: If your work is inherently project-based (wedding photography), retainers don’t apply.
The Bottom Line
Retainers are the best path to freelance financial stability. $7,500/month in guaranteed recurring income changed my relationship with money, risk, and client work entirely.
Start by converting one successful project client. Prove the model. Add a second retainer. Then a third. Three retainers covering your base expenses is the goal — everything else becomes upside.