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Business Terms
Retainer
Definition
A fee paid in advance to secure ongoing services from a professional.
Overview
Retainers provide predictable income for service providers and guaranteed availability for clients. They may be for a set number of hours or general availability.
Example
A marketing consultant charges a $3,000 monthly retainer for up to 20 hours of work.
Best Practices
Define what's included, track usage, and communicate when limits are approached.
Common Mistakes to Avoid
Unclear scope
Not tracking hours
Allowing unlimited demands
Frequently Asked Questions
Should unused retainer hours roll over?
Define this upfront. Some retainers are 'use it or lose it'; others allow limited rollover.