The Problem with Retainers in 2025
For years, agencies treated retainers like their financial backbone—predictable, stable, reliable. Today, retainers are more like a six-month “situationship” at best, leaving agencies in a constant cycle of uncertainty, justifying their worth every month, and praying they don’t get ghosted.
The agency industry is shifting fast, and agencies still clinging to retainer-based revenue models are playing a dangerous game. According to a 2024 Agency Growth Report, retainers now account for only 38% of agency revenue, down from 65% in 2018. Clients are opting for flexible engagements, performance-based pricing, and in-house solutions, leaving agencies in a reactive position. If your agency is dependent on a few long-term clients who can leave at any moment, it’s not a strategy—it’s a liability.
Clients Are More Budget-Conscious Than Ever
Retainers were designed to provide predictable income, giving agencies the stability to focus on long-term growth instead of constant client acquisition. But today, that stability is eroding. Clients are:
- Cutting marketing budgets due to economic uncertainty.
- Shifting more work in-house to reduce dependency on external agencies.
- Pushing for flexible contracts, making long-term agreements harder to secure.
A study by Forrester found that 71% of CMOs have reduced their reliance on agency retainers in favor of project-based engagements. This means agencies now spend more time renegotiating terms, justifying every line item, and handling client “pause” requests—which often turn into indefinite breaks.
Agencies Are Stuck in Justification Mode
An article from Voxus PR highlights how retainers can actually discourage communication and creativity, as agencies often feel bound to predetermined scopes instead of adapting to evolving needs. In many cases, the model becomes a box-checking exercise rather than a partnership built on strategic value. Likewise, Teamwork.com’s analysis points out that retainers create an imbalance in flexibility, leading to scope creep and forcing agencies into reactive, rather than proactive, roles.
Instead of being a foundation for growth, retainers have become a trap—keeping agencies tethered to uncertain client relationships while preventing them from pursuing more scalable revenue models.
How Agencies Are Moving Beyond Retainers
Agencies that have stopped waiting by the phone for retainer renewals are shifting their models now. Here’s how:
1. Productized Services: Selling Expertise in a Scalable Way
- 🔹 What It Is: Standardized, fixed-price offerings that clients can buy without a long-term commitment.
- 🔹 Example: A branding agency that previously sold long-term engagements can package its expertise into fixed-price brand strategy sprints. One agency that shifted from full-service marketing to fixed-scope SEO audits saw a 40% increase in sales while reducing dependency on long-term retainers.
- ➡ Next Step: Identify one core service your agency delivers repeatedly and package it into a standardized, fixed-price offer by the end of the month.
2. Done-With-You Training & Courses: Teaching Clients to Solve Their Own Problems
- 🔹 What It Is: Agencies monetize their expertise by offering high-ticket training programs or courses instead of execution-heavy services.
- 🔹 Example: Instead of executing social media strategies for every client, an agency can create a cohort-based coaching program teaching in-house teams how to manage content effectively. Agencies that have launched courses like this have seen single launches generate six figures—without the operational strain of ongoing client management.
- ➡ Next Step: List three repeatable strategies you teach clients often. One of them could be your first paid workshop.
3. Performance-Based Pricing: Tying Fees to Tangible Outcomes
- 🔹 What It Is: Agencies align their revenue with client success rather than charging a fixed fee.
- 🔹 Example: A paid media agency shifts from a flat monthly fee to a revenue-share model, where they take a percentage of the revenue generated from ad campaigns. Agencies using performance-based models often double their revenue potential compared to flat-fee retainers.
- ➡ Next Step: Identify a high-value service where your agency has a direct impact on revenue. Test a small-scale performance-based offer with a trusted client.
It’s Time to Rethink Retainers
Retainers aren’t disappearing, but agencies need to stop treating them as the foundation of financial security. If more than 50% of your revenue still comes from retainers, it’s time to diversify your model.Agencies that build beyond retainers will control their financial future. The ones that cling to them? They’ll be stuck waiting for commitments that never come. Now’s the time to stop hoping retainers will finally commit—and start building an agency that doesn’t need them to.