Most freelance consultants end up with a mix of retainer and project work without ever making a conscious choice about it. A client asks if you can be on hand each month, you say yes, and suddenly you have a retainer. But left to chance, the mix often doesn’t serve you well — you either end up over-committed to retainers with no bandwidth for interesting project work, or chasing project fees every month with nothing guaranteed.
Here’s how to think about the balance deliberately.
What retainers actually give you
A retainer is a monthly fee in exchange for a set amount of your time or a defined scope of work. The main benefit isn’t just the money — it’s the predictability. When you know £X is coming in each month regardless, you can plan, invest in your practice, and make better decisions about what project work to take on.
The risk is scope creep and underpricing. Retainers often start at a reasonable rate and slowly accumulate extra demands. Review your retainers every six months and be clear in writing about what’s included.
What project work gives you
Fixed-price projects are easier to price for value, let you work with more varied clients, and have a clear end date. The downside is the feast-and-famine cycle — a pipeline that looks full in March can be empty by June.
Project work suits consultants who are building a portfolio across sectors, or who have enough financial runway not to need the certainty of a retainer. It’s also useful for testing a new type of work before committing to an ongoing relationship.
A good starting point
If you’re early in your freelance career, aim for one or two retainers that cover your baseline costs — rent, software, minimum monthly income — and fill the rest with project work. As you become more established, you can be more selective about retainer clients and command higher rates for both.
A general guide: retainers for clients where the relationship and ongoing context matter; projects for well-defined pieces of work where your expertise is the product.
What to put in a retainer agreement
Be explicit about: the number of hours or deliverables included, what ‘available’ means (response time, meeting attendance, revision rounds), how unused time is handled, notice period for either party, and how rates will be reviewed. Ambiguity is where retainer relationships go wrong.
The income structure planner below helps you map out your current and target income split, model different retainer/project combinations, and see what mix you need to hit your income goals.