Retainer

A retainer is different from a project. A project has a defined end and a deliverable; a retainer continues month after month and covers recurring or unpredictable work such as website maintenance, SEO, small changes or advice.

There are two broad types. An hours-based retainer buys a block of time, for example a set number of hours per month. A service-based retainer buys an outcome or a list of tasks, such as monthly updates, backups and a report, regardless of exact hours.

How it works

The agreement sets the monthly fee, what it covers, how requests are made and how fast the supplier must respond. For an hours-based retainer it also states what happens to unused hours: some roll over for a limited period, many expire at the end of each month, and extra hours are billed at an agreed rate.

Work is usually requested through email or a ticket system, then logged with time spent. A monthly report shows what was done, how many hours were used and anything that needs a decision, such as an outdated plug-in that should be replaced or a page with falling traffic.

Retainers normally have a minimum term and a notice period, often a month or more, so the supplier can plan staff. Good agreements also state response times, for example the same working day for a site that is down and a few days for routine edits, and cover who owns the work, how passwords and access are handed back if the relationship ends and how larger requests outside the retainer are quoted.

Example

A law firm pays a monthly retainer that covers site updates, backups and monitoring, plus four hours of changes. In a typical month the firm uses two hours for new staff profiles and a blog post. In one busy month it needs eight hours for a new practice area page; the extra four are billed at the agreed rate.

After a year the firm's manager compares the reports and notices the four hours are rarely used in full, and unused hours expire. She moves to a smaller service-based plan for updates and monitoring and pays separately for content work, which costs less over the year while keeping the same response time for emergencies.

Why it matters for your business

A retainer gives you a supplier who knows your site and has time reserved for you, so small fixes happen in days instead of waiting for a new quote and a gap in someone's schedule. It also spreads costs evenly. The trade-off is paying for capacity you may not use, and it can drift into a habit nobody reviews. If your site rarely changes, paying per job may be cheaper. Review the monthly reports every quarter: if you consistently use far less or far more than the retainer covers, renegotiate. Compare it with what the same work would cost as separate jobs, and consider the total cost of ownership of the site over several years.

Common mistakes

• Signing a retainer without a clear list of what is included, so every request becomes a debate about whether it counts.
• Never checking the hours reports, and paying for unused time month after month.
• Agreeing a long minimum term before the supplier has proved the fit.
• Letting all logins and accounts sit in the supplier's name, which makes leaving difficult; keep your domain and hosting accounts in your own name.

Questions people ask

What is the difference between a retainer and a project fee?

A project fee pays for a defined piece of work with an end date, such as a new website. A retainer is a recurring monthly payment for ongoing work or reserved time. Many businesses use a project to build the site and a retainer to look after it.

What happens to unused retainer hours?

It depends on the agreement. Some retainers let unused hours roll over for a month or two, many expire at the end of each month, and a few convert them into credit. Check this clause before signing, because it decides how much value you get in quiet months.

Can I cancel a retainer at any time?

Usually only with the notice period set out in the agreement, often 30 days or more, and sometimes only after a minimum term. Read the termination clause, and make sure it covers handing back all access and files when the agreement ends.