To build a strong and robust freelance business, it’s a good idea to diversify – markets, industries and selling products as well as services.

This means you’re more resilient to disruptions that might be out of your control (think COVID, tech changes and economic shifts).

Another way to do this is by having a mix of both one-off projects and retainers.

Often retainers are no brainers for freelancers. There’s less admin involved. Lower risk in terms of cash flow and more opportunity to take creative risks as you move from service provider to trusted expert.

However, swapping transactional projects for something more long-term can come with a unique set of pitfalls.

Here are the most common mistakes freelancers make with retainer contracts so you can avoid them.

Basing Retainers on Hours or Days and Not Deliverables.

Many freelancers go wrong at the first hurdle and set up their retainers like this:

I’ll give you XX hours per month for $XX. Or. I’ll guarantee you 2 days of my time per week at a monthly rate of $XX.

If you do this, you’re going to hit an income ceiling pretty quickly. You only have so many work hours in a week and if you’re all booked up with retainer clients there’s nowhere for your pricing to go.

Similarly, if you’re giving a client 2 days a week, you’re not a freelancer, you're a part-time employee without benefits. You’re penalising yourself as you get more efficient and experienced.

And! Don’t even get me started on the ball ache of hourly rate admin. What if the client is asking you to do a lot of small jobs? Do you bill in 15-minute increments? Use a time tracking tool? Constantly update a spreadsheet with your hours?

It’s death by tedious admin.

It’s also frustrating to be contacted by clients looking to find out how many hours they have left, or why something took more hours than usual.

Create Freelance Retainers Based on Deliverables

Like me, you probably want to keep your admin low and your income ceiling obliterated to pieces.

That’s why you should base freelance retainers on monthly deliverables, because who cares how long it takes you as long as it delivers?

Your monthly deliverables might look like the following:

XX amount of blog articles for a fixed cost per month.
Monthly social media posting (set number of posts) and management for a fixed cost per month.
Or a mixed package of 1 weekly email, 1 webpage, and 2 blog posts per month.

A client is unlikely to feel compelled to retroactively figure out how many hours this all takes you because it doesn’t matter. They know exactly what they are getting - more engagement, optimisation and leads.

2. Not Having a “Use it or Lose it” Policy

In the olden days when I first started freelancing, I made the mistake of letting a freelance retainer client roll over monthly deliverables.

We had a package of 3 blogs, 1 email and 2-page brochure copy editing per month. One month, the client hadn’t approved any of the blog post suggestions despite my badgering.

Then they assumed they could use them the next month and I didn’t have that eventuality covered in my contract.

The result?

A big knock-on effect. I had to turn down other paid work to do the work that should have been done the previous month.

A retainer guarantees your attention and certain deliverables, not your time in perpetuity. So I would highly recommend you implement a “use it or lose it” policy, but of course, remain flexible where necessary.

Encourage Timeliness

If it's getting close to the end of the month and the client hasn’t used their deliverables and suddenly wants to cram them into a short space of time, that’s going to create some chaos with your other work. Make it clear in your initial contract that work shall be spread evenly and not to expect all the retainer deliverables in the last few days of the month.

Be sure to emphasise the importance of timely approval, feedback and review processes. Make sure you are both on the same side about this so you can manage the workflow efficiently with minimum stress.

(If you think this tip is useful, don’t miss 8 Best Tips for Beginner Freelancers for more…).

3. Not Being Crystal Clear On The Terms

Make sure you have explicit enough agreements in place to avoid any issues with freelance retainer clients. And it should go without saying but GET IT IN WRITING!

Retainer Duration

How long is the retainer in effect? It’s wise to have retainer contracts of at least 3-months so the client a chance to test it and see results. This length of time also gives you a chance to review, see what’s working and what isn’t.

Notice Period

Implement a 30-day cancellation period. The last thing you want is to have a regular retainer jump ship at the last minute and nothing to fill it. Retainers are great as a freelancer, but when you are dropped you have to replace it, so give yourself some leeway.

Trial Basis

What if the client is flakey? What if they're a nightmare to work with and things are taking longer than you anticipated? A first-month break clause is great for both sides so no one is locked into a contract that’s not working. You can be more confident in how they work, and how they expect you to work.

Staff Changes

Often with a client you’re dealing with one key contact, e.g., a brand manager or marketing manager. Make sure you’re not left hanging if the team is reshuffled or your contact loses their job or quits.

Extra Support

How are you billing if they need something extra that’s out of the scope of the retainer? Do you allow them to use it against next month’s quota? Are you going to charge a retainer rate or a la carte rate? Have this figured out and in your agreements.

4. Not Billing Up Front

Bill upfront each month in advance, or quarterly upfront. Billing upfront reserves time in your calendar just for your clients - and if they’re a no show at least you have their money as compensation for the time you put aside to work on their deliverables.

Billing upfront also means there's less area for dispute. “Well I didn't use that last blog post so can you take it off the bill?” If you go to a restaurant and order the mozzarella stick but don’t eat them, you still have to pay for the mozzarella sticks. Same with freelance retainer services.

Ensure clients pay on time.

If you’re not billing in advance but at the end of the month, what happens if the client is 2 weeks late with the payment? You’re 6 weeks work deep with nothing to show for it. I’m sure companies pay their staff on time, there’s no reason it should be different with contractors. Be clear on your terms and stick to them. I have a policy that no work can commence until the balance hits my account.

5. Not Making Retainer Clients Feel Special

Look after your clients and they’ll look after you. I treat my retainer clients extra special by waiving my fast turn-around fees. Normally anything needed in 48 hours or under is a rush job and I charge a 50% extra fee. I waiver this for my retainer clients as a big perk and make them a priority because they’re supporting me long term.

Retainer clients feel extra valued when they know you’re happy to go the extra mile and deliver on a tight deadline when they need it. In return, they’re generally reasonable and know it’s not something to expect all the time. Help them out of a bind every now and again.

Constantly remind them of the value you bring.

At the end of each month send the client a round-up of what was delivered and how it went. The report should make it obvious why they’re continuing to keep the retainer ongoing each month. It can include blog posts that were delivered, click rates, open rates, views, conversions and engagement etc.

Should Freelancers Give a Discount on Retainers?

Some freelancers might say it lowers your value to give a discount on retainers. But if you have a returning customer that is driving a significant part of your revenue, it’s good customer service and shows you value their business.

I give a 10% discount on retainer rates as an incentive to commit to a 3 month period. I don’t think it devalues the service I provide because these clients are sticking around for the long term which makes a lot of things easier for me.

If you don’t feel like discounting but still want to make clients feel special, maybe throw in something of added value as an incentive in your packages.

Boost Your Freelance Retainer Success with Package Options

Give the client more opportunity to say “yes”.

Rather than just saying, here’s the retainer package and it being a “yes” or “no” from the client, let them choose between a low, mid and high-tier package (just give your packages better names).

By packaging retainers and presenting various options, your client can decide the deliverables of most valuable to them, and can always upgrade in the future.

Let’s say in the low-end monthly package you’re delivering a weekly email and weekly blog post.

A mid-tier package includes everything in the low-end tier, plus:

A social media post promoting each blog on 3 platforms.
A/B test of email calls to action and optimisation.
A monthly call to discuss strategy.

The high-end tier would then include everything in the mid-tier, plus:

Access to a monthly client-only email with exclusive marketing tips.
Weekly access to you for 2-hours so their team can get your opinion or advice.
1-hour monthly marketing training for their staff delivered as a recording or live webinar.

Get creative with your offerings, price strategically and don’t miss out on the chance to up-sell and bring extra value.

Selling Your Freelance Clients on the Benefits of Retainers

A retainer is a commitment and it’s worth reminding the client of all the great reasons it works to have you on retainer as their freelancer rather than ad-hoc jobs.

Here’s a few ways you can emphasise the benefits:

Working with a freelancer who already understands their business saves them time and leads to better quality deliverables. They won’t have to bring you up to speed with their products or services, deliver super in-depth briefs and they’re probably likely to request fewer changes and edits, freeing up more of their time.
On retainer the client gets priority access to you as a freelancer. They know they can trust you to get the job done and don’t need to worry about your availability or if you’re booked on another project.
The better you know their business, the more you can give them the full value of your experience. The more you’re invested in their business, the more ideas you’re likely to have to further boost their success. It also gives you the chance to move from being a gun for hire into more of a strategic partner.
Finally, retainers allow the client to maintain visibility into their monthly expenses so there are no budget shocks along the way.

When Retainers Don’t Make Sense for Freelancers

Retainers work when there are set deliverables so you can worry less about scope and get on with executing and delivering value to the client. This might include handling recurring work, consulting on strategy and ongoing reporting or monitoring.

Retainers don’t work well on things that are unpredictable, overly technical jobs (plenty of scope for things to go wrong and cost extra time) or there are too many variables or it’s unclear exactly what a client is paying for.

The most important thing is to make sure everything is clear, you’re bringing value and you’re keeping the client happy. With everything in freelancing, take good care of your clients and they tend to take good care of you.

There you have it. The 5 most common mistakes freelancers make with retainer contracts, tips on how to structure your retainers, sell them to clients and make them work for both sides.

Have you made any other mistakes with your freelance retainer contracts? Let me know in the comments (so I don’t make them)!

5 Common Mistakes Freelancers Make With Retainer Contracts

Basing Retainers on Hours or Days and Not Deliverables.