Getting paid
Retainer fee
A retainer fee is an upfront payment a client makes to secure a provider’s availability or services, often drawn down against future work as it’s performed.
How retainers work
A retainer is money paid in advance to reserve a provider’s time or services. It’s common with lawyers, consultants, agencies, and freelancers. The provider either earns against the retainer as they work (billing hours or deliverables against the balance) or treats it as a recurring fee for ongoing availability.
Retainers protect the provider by guaranteeing some income up front and protect the client by locking in the provider’s commitment.
Retainer vs. deposit
A retainer secures ongoing access to a provider and is typically drawn down over time; a deposit is a partial upfront payment toward a specific one-time job, applied to the final invoice. They overlap, but a retainer implies an ongoing relationship.
On invoices, show retainer draws clearly — list the work performed, then the amount applied from the retainer and the remaining balance — so the client always knows where they stand.
Example: A consultant collects a $3,000 monthly retainer. As she works, she logs hours against it and her invoice shows the retainer, the hours used, and the balance carried forward.
FAQs
Frequently asked questions
Is a retainer fee refundable?
It depends on the agreement. Some retainers are refundable for unused amounts; others (especially "earned on receipt" retainers) are not. The engagement terms should state this clearly.
What’s the difference between a retainer and a deposit?
A retainer secures ongoing availability and is drawn down over time; a deposit is a partial prepayment toward a specific job that’s applied to the final invoice.
Related terms
Payment terms
Payment terms are the conditions on an invoice that state when payment is due and how it should be made — for example "Net 30" or "Due on receipt."
Invoice payment
An invoice payment is the funds a buyer sends to a seller to settle the amount owed on an invoice, by or before its due date.
Proforma invoice
A proforma invoice is a preliminary, good-faith estimate of costs a seller sends before goods or services are delivered, so the buyer can review and commit before a final invoice is issued.
Put it into practice
WaffleInvoice lets you create branded invoices, set payment terms, collect payments online, and automate reminders — free for unlimited invoices.
Invoice retainers and track balances Browse the glossaryNo credit card required.