How to Run Profitable Retainers
Retainers are the holy grail of agency revenue, but they are also where margins go to die. This guide will show you how to structure, track, and optimize your retainers for maximum profitability.
The Problem with Retainers
Most agencies sell retainers based on hours, but clients buy them for outcomes. When the two don’t align, you end up over-servicing the account.
Structuring for Profit
- Define the scope clearly: What is included and what is extra?
- Track time relentlessly: Even if you don’t bill by the hour, you need to know your costs.
- Monitor the burn rate: Don’t wait until the end of the month to realize you’re over budget.
Using Felagar for Retainers
Felagar’s retainer management tools give you real-time visibility into your margins. You can see exactly how much time has been logged against a retainer and what your effective hourly rate is.