Free Agency Retainer Agreement Template [Docs / DOCX]

Need a ready-to-use agency retainer agreement template? You’re in the right place. 

This article is for you, regardless of your niche. A retainer agreement helps you communicate your services, deliverables, payment terms, and other things you need your client to be mindful of before you work together. 

In this article, I'll explain the essentials of a reliable retainer agreement, why it’s important, and how you can create one that fits your needs. I’ll also show you how to use ManyRequests to manage clients, team members, and your projects. 

What is an Agency Retainer Agreement? 

A retainer agreement formalizes your relationship with clients to ensure you’re paid regularly for specific services during the specified period. Rather than working on a project-by-project basis, a retainer agreement guarantees consistent work and income while giving your clients the confidence that you’ll always be available to meet their needs.

Why You Need an Agency Retainer Agreement 

A retainer agreement is more than just a contract. It’s a tool to build stability and trust in your business relationships. Here’s why your agency needs one: 

1. Clarity of Services: A retainer agreement avoids ambiguity. It specifies the services you’re offering so you and your client know what to expect. 
2. Guaranteed Income: A retainer helps you to secure consistent monthly payments. Instead of chasing one-off projects, you’ll have a predictable revenue stream that helps you to plan your finances better. 
3. Prevents Scope Creep: Without a contract, clients might ask for extra services without additional pay. A retainer agreement sets boundaries, so any extra work is defined and billed for. 
4. Strong Client Relationships: A retainer positions you as a long-term partner, not just a service provider. This leads to deeper trust and collaboration with your clients. 
5. Legal Protection: If a dispute arises, the retainer agreement provides legal clarity. You have documented terms for payment, services, and expectations that protect both you and the client. 

Disadvantages of Not Using an Agency Retainer Agreement 

Without a retainer agreement, you're vulnerable to: 

• Unclear expectations because your client can misunderstand your responsibilities and ask for more than you intended. This will strain your relationship with the client and disrupt the progress of the project. 
• You may encounter payment delays, or, in worst cases, clients might refuse to pay for completed work. This will affect your cash flow and financial stability. 

📌 Tip: Read this article to know what to do when a client doesn’t pay. It has happened to me before and the tips in the piece can prevent escalation in any way. 

• Scope creep occurs when no boundaries are set in a retainer agreement. Clients may ask for additional services beyond the original agreement, which can lead to unpaid work and increased workloads for your team. 
• Without a contract, you have no legal framework to enforce payments or manage conflicts. This puts your agency at risk of unpaid work and unresolved disagreements. 
• You'll be constricted to short-term engagements because clients don’t see you as a long-term partner. This makes it harder to secure consistent work and build relationships— you get trapped in a cycle of one-off projects. 
• It increases stress and uncertainty because you can’t reliably predict when your next project or payment will come in. This can affect your ability to plan financially and operationally. 

Key Components of Your Agency Retainer Agreement 

A well-structured retainer agreement protects your agency and improves your value with clients. Here are the key components your agreement should include: 

1. Parties Involved: Write the names and addresses of your agency and the client. This formally identifies the two entities that are entering the agreement to ensure accountability. 
2. Scope of Services: Write the exact services your agency will provide. This can be social media management, content writing, consulting services, or website development, be specific about what’s included. This prevents scope creep and ensures the client understands what they will pay for. 
3. Payment Terms: Write how and when payments will be made. Specify the retainer fee, payment frequency (monthly, quarterly, etc.), and any penalties for late payments. 

For example, you can charge $25 weekly for late payments or a percentage of the invoice amount (1% to 5% per month of delay). 

If an invoice of $1,000 is unpaid for a month, a 2% penalty would add $20 to the total owed. Depending on how you want to phrase your terms, you can also have a 5-10-day grace period before penalties are applied. 

Tip: Read this article to know what to do to get paid faster. 

4. Scope Adjustments: Include a process for handling any requests for work outside the original scope. This could involve additional fees for extra work or limiting the number of revisions to two or three. 

This helps your clients understand the boundaries of the agreement and that you'll be compensated for extra services. 

You can specify that you'll create another contract for extra work or use ManyRequests’s add-on services feature. Through this feature, you can create an add-on service to fit what your client needs while managing other existing projects/tasks. 

The client will be billed for this “extra service” without interfering with your current workflow. 

5. Duration and Termination: Set the start and end dates of the agreement. You should also explain how the contract can be terminated early— including any notice periods or penalties for early termination. 

The typical notice period is 30 days. You can mention it. You can also state that the contract can be terminated due to circumstances such as: 

• The client is changing strategy and will no longer need the service provider’s services 
• The client is halting (service) due to other internal priorities and will pause for a few months 
• The client is out of budget for (specific service)  

Having scenarios like this can help ensure your contract isn't arbitrarily terminated. They also provide valid grounds for termination and communicate the agreement’s lifecycle. 

6. Deliverables and Responsibilities: Specify what the client can expect from your agency. Whether it’s monthly reports, content drafts, or website updates, ensure there's a process to measure progress and what a completed deliverable looks like. 
7. Client Responsibilities: Write the client’s role in the contract. This could be as “minute” as: 

• Timely feedback, 
• Access to necessary accounts or 
• Providing materials by specific deadlines. 

Clarifying these responsibilities helps your client know what their responsibilities are towards the success of the project. 

8. Confidentiality and Non-Disclosure: Include clauses that protect sensitive information shared during the project. This could be business strategies, proprietary tools, or client data. 

This protects your agency and your client from misusing any confidential information. 

9. Dispute Resolution: Write how disputes will be handled, whether through mediation, arbitration, or legal action. Including this in the agreement helps avoid costly legal battles and ensures a smoother process for resolving conflicts. 
10. Indemnification and Liability: Write the limits of liability and indemnification for both parties. This protects your agency if a client misuses your work or fails to follow your recommendations and it backfires. 
11. Intellectual Property Rights: Clarify who owns the work created during the contract. Specify if there is transfer of rights to the client upon completion and full payment. This clause ensures there’s no confusion about ownership once the project is delivered. 
12. Signatures and Date: Include a section for both parties to sign and date the agreement. This formalizes the contract and confirms that you and the client agree to the terms. 

Tips and Best Practices for Creating an Agency Retainer Agreement 

When drafting a retainer agreement, follow these tips to ensure clarity and fairness between you and your clients: 

1. Be clear and specific about services and break down deliverables so the client knows what to expect. 
2. Set realistic timelines and expectations to keep both parties on the same page. 
3. Specify how and when payments are due and include provisions for late fees. This will eliminate confusion and help maintain your agency’s cash flow. 

For example, “Payments are due on the 1st of each month, with a late fee of $25 for payments not received within 10 days.” 

4. Account for scope creep to protect your agency from taking on unpaid work. For example, include the sentence “Any tasks beyond the agreed scope will be billed at an hourly rate of $80” in your contract. 
5. Establish a communication process that includes frequent updates, the preferred channels (e.g., email, project management tools), and your availability. This helps prevent over-communication or miscommunication with clients. 
6. Use simple, understandable language to reduce the chances of disputes from unclear contract language. 
7. While your retainer agreement doesn’t need to be overly complex, it's okay to have a legal professional review it. This ensures you’re covered legally and aren’t overlooking critical details. 
8. Use digital signing options to speed up the process and avoid delays in finalizing the contract. 
9. Document every change or additional work in writing to ensure all parties are clear on what’s expected. 

How to Use Our Free Agency Retainer Agreement 

Using our free retainer agreement template is simple. Follow these steps to get started: 

• Customize the template with your agency’s name, client details, and other necessary information.
• Define the scope of services as explained. 
• To make it look professional, add your agency’s branding elements (logo, color scheme, and font). 
• Review the contract thoroughly before sending it out 

Wrap up 

By now, you should have a clear understanding of what an agency retainer agreement is and why it’s essential for your business. A well-structured agreement sets clear expectations, prevents scope creep, and ensures consistent payments for a smoother and predictable workflow.

Once your agreement is in place, use ManyRequests to manage clients, work with your team, track deliverables, and collate invoices—all in one place. Try ManyRequests with a free 14-day trial to see how it can transform how you run your agency. If you need help using any feature, visit our help center. 

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