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A consulting agreement with a retainer involves a consultant and a client, where the client pays an upfront fee for services. This retainer essentially reserves the consultant for a set number of hours, ensuring their availability. Whether a consultant charges a retainer depends on their work type and personal preference. Many consultants opt for retainers to cover initial costs and secure payment for early efforts, especially if the relationship may not continue. Retainer agreements typically require a minimum deposit or a predetermined number of hours to be reserved. The tutorial also discusses how to create a retainer agreement and access free consulting agreement templates.