How to Write a Retainer Agreement

A retainer agreement keeps a freelancer, consultant, or agency available on an ongoing basis — usually for a recurring monthly fee — instead of a single project. It is the document behind "we work together every month." Write the scope and the billing rules clearly, or unused hours and extra requests will eat the relationship.

Our free retainer agreement template uses monthly invoicing against an agreed scope.

Two common retainer styles

• Pay-for-access: a set fee for priority and availability, whether or not every hour is used.
• Pay-for-work: a monthly fee tied to a defined amount of work; extra is billed separately.

Say which one you are using. Silence on unused hours is the most common retainer fight.

1. Define the ongoing services

List what is included each month (hours, deliverables, meeting cadence) and what is not. A retainer without a scope becomes an open ticket for whatever the client thinks of.

2. Invoicing, expenses, and overages

State the monthly fee, when invoices go out, when they are due, whether unused time rolls over, and how extra work is approved and billed. Pre-approve expense categories if the client will reimburse them.

3. Term and how to end it

Retainers should be easy to end with notice (30 days is common), with payment due for work already done and any outstanding balance. Do not lock a client in forever — and do not let them walk away mid-month with unpaid invoices.

4. IP, confidentiality, independent status

Say who owns work product created under the retainer, keep a confidentiality clause, and confirm the provider is an independent contractor. Then both sides sign before the first month starts.

For a single project instead of an ongoing relationship, use a service agreement or a consulting agreement.

Disclaimer: This article is for general informational purposes only and is not legal advice.