I overheard two agency owners arguing about retainer models at a coffee shop

I was grabbing a latte last Tuesday and caught this conversation between two guys from different marketing shops. One was saying flat retainers are dead because every client now wants month-to-month flexibility. The other guy pushed back hard, saying his agency's 6-month commitments actually locked in better results and deeper strategy work. It made me wonder if we're all just reacting to client pressure instead of pushing back on what actually works. Has anyone else seen partners dropping retainer minimums below 3 months?

2 comments

2 Comments

norathomas1mo ago

Month-to-month flexibility" killed two of our best retainer relationships this year.

terryf621mo ago

A buddy of mine runs a small design shop in Austin and he told me last month that he lost his biggest account when he tried to switch from month to month to a 3 month minimum. The client laughed and said they'd just take their business to the other shop across town that does pure project work. My buddy felt stupid for pushing it but six weeks later that same client came crawling back because the project shop kept jacking up prices every time they wanted a minor revision. He took them back but only on his terms with a 4 month retainer and a clear scope of work. The client actually appreciated the stability once they realized monthly flexibility meant their costs were all over the place. Made me think that clients say they want flexibility but what they really want is predictable cost and a partner who won't nickel and dime them.