Retainers vs Projects: How to Price for Profit
For agencies, how you price shapes your profit.
Retainers and project fees pull in different directions.
By Tom Fisher, Client Manager
For agencies, how you price shapes both your profit and your cashflow. Retainers and project fees pull in different directions, and the best studios use a blend.
Project fees
Clear scope and a defined deliverable, but income is lumpy and scope creep can quietly eat your margin. Great for one-off work, harder to plan around.
Retainers
Predictable recurring revenue, smoother cashflow and deeper client relationships. The risk is over-servicing, giving away more than the fee covers, so you have to track it.
The number that matters
Profitability per client and per project: the fee against the time actually spent. Without that, you are guessing. We help agencies measure it and price for profit.
