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How long does a retainer agreement last?

A retainer agreement is simply a contract, usually over a period of several months or a year, that guarantees a freelancer will get paid a certain rate for a pre-set number of hours or projects per month.

How does a retainer fee work?

A retainer fee in accounting refers to an advance payment made by a client to a professional. In addition, it is a down payment on the professionals future period services. The retainer fee funds the working relationships primary expenses.

Why charge a retainer fee?

Retainer fees are used to ensure commitment to the work and help pay for the services throughout the duration of the arrangement. The retainer fee is mostly to represent the professionals reserved time. They can help build trust between a service provider and their client.

Are retainer fees refundable?

A retainer is by default non-refundable and is not returned. Instead, it gets applied to the total. Think of a security deposit for an apartment or a cleaning deposit for an event venue rental (separate from the actual fee for the event cost itself). These are fees that are separate from the total.

What is the purpose of a retainer agreement?

A retainer agreement is a work-for-hire legal document or a service contract between a company or an individual and a client. It falls between a one-off-contract and a permanent employment contract . It allows clients and customers to pay in advance for professional services of a company or individual.

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