What Is a Freelance Retainer Agreement?
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One of the toughest challenges of freelance work is fluctuating monthly income, especially since bills and expenses tend to stay the same year round. While most freelance work is project-based, building solid relationships with clients helps ensure recurring work.
In addition, some freelancers can secure retainer agreements. A freelance retainer agreement means that a client agrees to give a freelancer a certain amount of work over a set period. Let’s look at the advantages and disadvantages of this type of arrangement.
What Is a Freelance Retainer Agreement?
A freelance retainer agreement is basically a contract between a freelancer and a client that guarantees a certain amount of work (such as a preset number of hours or projects) over a given period for a set rate. It’s used in place of project-based fee agreements, which are common in the freelance world.
Retainer agreements tend to last at least several months, and they typically mean a more reliable workload and income. This can be beneficial for both the freelancer and the client – the freelancer has a more consistent schedule, and the client receives consistent, high quality work.
Freelance retainer agreements are typically used for work that must be done on a regular basis, such as weekly email campaigns, marketing, website maintenance, and long-term projects that involve a substantial time commitment.
As with any contract, it should include the scope of the work, the total payment, how long it will last – and it should be in writing.
The Benefits of Retainer Agreements
There are many benefits to freelance retainer agreements. For a start, it tackles the one big drawback of freelancing: the constant pressure to pitch for new projects and negotiate rates.
With a retainer agreement, freelancers know where their next job is coming from, eliminating the stress of finding new clients. And it’s possible for a freelancer to have retainer agreements with multiple clients, which allows them to plan for a much steadier flow of monthly income.
In addition, having a contractual agreement with a client helps ensure a strong, long-lasting working relationship. And if you build trust with your client, they could recommend your services to other companies, leading to even more steady work.
The Drawbacks of Retainer Agreements
Although there are many benefits to freelance retainer agreements, there are also some drawbacks. Some freelancers feel they need to give discounts to clients in return for long-term agreements.
While there’s nothing wrong with charging lower rates to clients who provide you with a reliable stream of work (especially in the beginning), you should never undervalue your services.
Another disadvantage of retainer agreements is feeling like you’re always on call. Because clients have a relationship with you, they may ask you to complete tasks with a tight deadline or request work outside of the terms of your agreement. If you find that this is happening on a regular basis, consider renegotiating your contract or increasing your rates.
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