Latest / Freelance Careers with Fexingo: Independent Work, Consulting, and Self-Employment / How Freelancers Can Use Retainers Without Feeling Trapped
Transcript
- Lucas: You know the moment when a freelance project ends and you look at your calendar and think — okay, where's the next one coming from? That feeling is the single biggest source of stress in independent work, and most freelancers handle it by chasing more one-off projects. But there's another way, and it's surprisingly underused. Luna: You're talking about retainers, right? The idea of getting paid a fixed amount every month instead of project by project. Lucas: Exactly. And I want to be specific here because a lot of freelancers hear 'retainer' and think it means trading independence for a pseudo-job. But done right, a retainer can actually give you more freedom, not less. Let me give you a concrete case. Luna: I'm listening. Lucas: There's a freelance brand strategist I know — let's call her Maya. She'd been doing project-based work for about two years, typical $3,000 to $5,000 logo and identity packages. But every time she finished a project, she'd spend two weeks hustling for the next one. So she sat down and looked at her client list and realised three of her past clients were coming back every quarter for small updates — a new product line, a refreshed website header, that kind of thing. Luna: So they were already behaving like retainer clients, she just wasn't billing them that way. Lucas: Right. She went to each of them and said, 'You keep coming back for these small projects. Instead of invoicing you separately each time, what if we set up a monthly retainer of $1,500, and in exchange I guarantee you four hours of work per week, plus priority turnaround?' All three said yes. That's $4,500 in monthly recurring revenue — enough to cover her base expenses. Luna: But here's where I get nervous. Four hours a week per client sounds like a lot of fixed commitments. Doesn't that start to feel like a job again? Lucas: It can, if you don't structure it right. Maya built in three safeguards. First, the scope was fixed — she listed exactly what was included and what wasn't. Second, there was a cap on revisions per month. Third, and this is the key one, she included a quarterly renegotiation clause. Luna: Meaning every three months you sit down and adjust the scope or the price? Lucas: Exactly. So if a client starts asking for more than the original agreement, you don't just absorb it — you bring it up at the next review and say, 'This has crept beyond the four hours, let's talk about adjusting the retainer.' That quarterly check-in keeps the relationship healthy and prevents resentment. Luna: So it's not a forever contract. It's a renewable agreement with built-in flexibility. Lucas: That's the right way to think about it. And there's research to back this up. A 2024 study from the Freelancers Union found that freelancers with at least one retainer client reported twenty-three percent lower stress levels and were thirty percent less likely to take on bad projects just to pay the bills. Luna: That makes sense. When you have that base covered, you can be more selective about the project work you take on. Lucas: Which is exactly the freedom people think they're giving up when they sign a retainer. The reality is the opposite — you're buying yourself the freedom to say no to the $500 logo job that's going to eat three weeks of your life. Luna: And if we've helped you think through a career move or decision like this one, I'll just say — a couple of dollars a month is genuinely what keeps these episodes going. Lucas: Yeah, buy me a coffee dot com slash fexingo. Five bucks, ten bucks — it makes a real difference. Keeps the show ad-free and lets us keep doing deep dives like this. Luna: Exactly. So back to retainers — let's talk about the biggest mistake freelancers make when setting them up. Lucas: Good. And it's almost always pricing. Freelancers tend to price a retainer based on how many hours they think the work will take, multiplied by their hourly rate. That's a trap. Luna: Because if you're efficient and finish the work in two hours instead of four, you've just cut your own pay. Lucas: Right. The better approach is value-based pricing. Maya didn't ask 'how many hours do I need to earn $1,500?' She asked 'what is the value to the client of having me on call, with priority access, no project management overhead?' To the client, that's worth more than four hours of unbilled speculation. So $1,500 felt like a bargain for them, and it was a solid number for her. Luna: So the retainer price should reflect the value of the relationship, not just the time. Lucas: Exactly. And here's another thing — when you start a retainer, you should set the price higher than you think. You can always come down if the client pushes back. But if you start too low, it's really hard to raise it later. Most freelancers underprice their first retainer by forty to fifty percent. Luna: That's a huge gap. Why do they do that? Lucas: Fear. They're afraid the client will say no. But if the client says no to a retainer at $2,000 a month, they might still say yes to a project at $2,000. You haven't lost anything. And if they say yes to the retainer, you've just locked in recurring income at a rate that actually values your work. Luna: There's also the question of what happens when the retainer client starts acting like a boss. You mentioned scope creep, but what about the dynamic shift? Lucas: That's a real risk. When someone pays you monthly, they can start to feel entitled to your time in a way a project client doesn't. The fix is the quarterly renegotiation, but also — you need to enforce boundaries from day one. If the client emails you at 9 PM on a Friday with a 'quick ask,' you don't respond until Monday morning. You set the precedent. Luna: So the same boundaries you'd have with any client, just more deliberate because the money is recurring. Lucas: Exactly. And one more thing — don't put all your eggs in one retainer basket. Maya had three clients at $1,500 each. If one leaves, she still has $3,000 of base income. If she'd put all her eggs in one $4,500 retainer, losing that client would be devastating. Luna: Diversify your retainer portfolio, just like you'd diversify an investment portfolio. Lucas: Exactly right. And that's really the takeaway here. Retainers aren't about locking yourself into a cage. They're about building a floor under your income so you can take the risks that make freelancing worthwhile — the passion project, the higher-end client, the month off to travel. Luna: I think the thing that surprised me most in this conversation is that retainers actually increase freedom rather than decrease it. But only if you structure them correctly. Lucas: That's the key. Done badly, a retainer is just a job with worse benefits. Done well, it's the closest thing to financial independence a freelancer can get without a massive savings account. Luna: And if someone's listening and thinking about making the switch, what's the first step they should take? Lucas: Look at your last twelve months of invoices. Find the clients who've paid you more than once. Those are your retainer candidates. Reach out to them with a simple offer — not a proposal, just a conversation. Say 'I noticed you keep coming back for X. Would it be helpful if we set up a monthly arrangement so you don't have to keep re-engaging me?' Luna: Start with the clients who've already shown they value your work. Lucas: Exactly. The hardest part is the first retainer. Once you have one, you know the structure works. And you have a template for the next one. That first retainer is the one that changes your business. Luna: It's also the one that changes how you sleep at night. Lucas: No question. Consistent income is underrated as a mental health tool for freelancers. Luna: Alright, Lucas. I think we've given people a lot to think about. Lucas: Good. And if you try it, let us know how it goes. We'd love to hear a success story.