What is a retainer agreement?
A retainer agreement sets out ongoing work a client pays for on a regular basis, usually monthly. Instead of scoping each project separately, you agree what a month includes, how time is measured, how work is requested and approved, and how either side can end the arrangement.
Agencies and consultants use retainers for ongoing support, content, maintenance, advisory work and reserved capacity. Some retainers buy a set number of hours; others buy a defined set of services or simply access to your team.
The common types are:
- Hours-based: the client buys a fixed number of hours each month.
- Deliverables-based: the client buys a defined set of outputs each month, such as four articles or one campaign.
- Access or advisory: the client pays for availability and advice, with limits on response times or meetings.
This template is a starting point, not legal advice. Contract law and required terms vary by country. Have a qualified lawyer review your retainer agreement before you use it.
The sections in this template
The download contains the full template with placeholders. Replace the bracketed text and delete anything that doesn’t apply.
| Section | What it covers |
|---|
| 1. Parties and purpose | Who the agreement is between and what the retainer is for. |
| 2. Services included each month | The services, deliverables or hours the monthly fee covers. |
| 3. Hours, rollover and overages | How time is tracked, whether unused hours carry over and how extra work is agreed. |
| 4. Out of scope | Work not covered by the retainer and how it would be quoted. |
| 5. Requests and response times | How the client asks for work and how quickly you’ll respond. |
| 6. Client responsibilities | Inputs, access and feedback the client provides, and the effect of delays. |
| 7. Reporting, review and approvals | The monthly update, who approves work and how decisions are recorded. |
| 8. Fees, invoicing and payment | Monthly fee, invoice timing, payment terms and expenses. |
| 9. Term, renewal and notice | Initial term, renewal and how either party ends the agreement. |
| 10. General terms | A pointer to your master services agreement or standard terms. |
| 11. Signatures | Names, titles and dates for both parties. |
Example: a monthly website support retainer
Here’s how the key sections read for a typical agency retainer. Harbour Lane Studio and Greenfield Dental are fictional companies used for illustration.
Services included each month: up to 20 hours of website design and development support, one monthly analytics summary and one 30-minute review call.
Hours and rollover: time is tracked in 15-minute increments. Up to five unused hours roll over to the following month only. Work beyond the monthly hours is quoted and agreed in writing before it starts.
Out of scope: full redesigns, new websites, paid advertising management and photography. These can be quoted separately as projects.
Reporting and approvals: by the fifth working day of each month, Harbour Lane Studio sends an update covering work completed, hours used, what’s planned next and any decision needed. The practice manager approves changes before they go live.
Term and notice: an initial three-month term, then rolling monthly. Either party can end the agreement with 30 days’ written notice.
Five terms that cause retainer disputes
- “Ongoing support” with no limit. Say what the fee covers: hours, deliverables or response times. An open-ended promise turns into unlimited work.
- Unclear rollover. Decide whether unused hours carry over, for how long and whether they expire at the end of the agreement. Silence here causes arguments at renewal.
- No out-of-scope list. Clients reasonably assume anything not excluded is included. Name the work that would be quoted separately.
- No regular report. A retainer client can’t see effort the way a project client sees deliverables. A monthly update showing work done, hours used and decisions needed keeps the value visible.
- Notice terms nobody agreed. State the initial term, how it renews and the notice period, so ending the arrangement is a process rather than a surprise.
Running the retainer each month
A signed retainer only works if the monthly routine matches it. Send a short update at the agreed time: what was completed, hours used against the allowance, what’s next and the decision you need. The client status update template gives you a structure to start from.
Angelwood gives each client a portal for reviewed updates, approvals and recorded decisions. Your team reviews each update before it’s published, clients approve work in the portal, and portal activity shows who needs a follow-up.
This template is a starting point, not legal advice. Have a qualified lawyer review your agreements for your jurisdiction and business.
Use it in Word, Google Docs or PDF
Microsoft Word
- Download the Word (.docx) file and open it. If Word opens it in Protected View, select Enable Editing.
- Use Find (Ctrl+F or Cmd+F) and search for “[” to jump between the placeholders you need to replace.
- Save a clean copy as a Word template (File → Save As → Word Template) so every new document starts from it.
Google Docs
- Upload the .docx file to Google Drive.
- Right-click it and choose Open with → Google Docs, then File → Save as Google Docs to keep an editable copy.
- Use File → Make a copy for each new client so your master stays clean.
PDF
Fill it in Word or Google Docs, then export it: File → Save As → PDF in Word, or File → Download → PDF document in Google Docs.