A recurring fee paid in advance for ongoing access to a service provider's time or services over a defined period.
A retainer is a recurring payment arrangement where a client pays a fixed amount (often monthly) in advance for access to a service provider's time or services. Law firms, consultants, PR agencies, and fractional executives commonly work on retainers.
There are two main types. A classic retainer reserves the provider's time — you pay to have access to a certain number of hours per month, used or not. An "evergreen" retainer maintains an ongoing relationship where work is done against the retainer and unused hours may roll over or not, depending on the agreement. A work-against-retainer model means the provider works up to the retainer amount and bills separately for anything above.
Retainer agreements should specify what's included in the retainer, what happens to unused time, the notice period to terminate, and how out-of-scope work is handled. From the provider's perspective, retainers provide predictable recurring revenue. From the client's perspective, they ensure dedicated access to the provider without having to negotiate scope and price for every small request.