A retainer is an ongoing payment agreement where a client pays you a fixed amount on a regular schedule (usually monthly or quarterly) to reserve your time and expertise. Instead of billing per project or per hour, you receive predictable recurring income in exchange for being available to the client.
Why Retainers Work for Freelancers
Retainers provide several key benefits:
- Predictable income - Know exactly how much you'll earn each month
- Reduced sales effort - Spend less time finding new clients
- Deeper client relationships - Long-term partnerships lead to better work
- Cash flow stability - Easier to plan expenses and invest in your business
Common Retainer Structures
Hours-Based Retainer
The client pays for a set number of hours per month. If they use fewer hours, they typically forfeit them (though some agreements allow rollover). If they need more, you charge extra.
Value-Based Retainer
The client pays for access to specific services or deliverables, regardless of hours spent. This works well when you're efficient and can deliver value quickly.
Availability Retainer
The client pays for priority access and guaranteed response times. Common with consultants and specialists.
Setting Retainer Terms
Define these clearly upfront:
- Monthly or quarterly amount
- What's included and what costs extra
- Response time commitments
- Unused hours policy
- Termination notice period
Chronobill's project budget feature works perfectly for retainers. Set your monthly budget (e.g., €2,000) and hourly rate, then track time against it throughout the month. You'll see exactly how much of the retainer budget has been used and what's remaining—making it easy to stay within scope or flag when you're approaching the limit.