Latest / The Marketing Career Podcast with Fexingo: Marketing Jobs, Skills, and Career Growth / How Marketing Freelancers Use Retainers for Stable Income in 2026
Transcript
- Lucas: So we've talked a lot on this show about freelancing — how to land clients, how to raise rates, how to use no-code tools to deliver faster. But there's one structural shift I keep hearing about from successful freelancers, and it's not about speed or tools. It's about how they get paid. Luna: You're going to say retainers, right? Because the project-based model is kind of a roller coaster. Lucas: Exactly. Retainers. And I want to be specific here — not the old-school agency retainer where you're on call for X hours a month and the client expects you to be available at all hours. I mean a modern retainer: a fixed monthly fee for a defined scope of work, usually with some flexibility baked in. Luna: So what's driving this shift in 2026? Why now? Lucas: A couple of things. First, the freelance market is maturing. According to a study from the Freelancers Union published earlier this year, the median hourly rate for marketing freelancers has climbed about 12 percent since 2023. But the bigger story is that the top 20 percent of earners — the ones making over $150,000 a year — almost all have at least one retainer client. It's not just about the rate; it's about the predictability. Luna: And clients like it too, right? Because they know what they're spending each month. Lucas: Right. From the client side, a retainer turns a variable cost into a fixed cost. Their CFO loves that. And the freelancer gets steady cash flow instead of feast or famine cycles. I talked to a content strategist in Austin — let's call her Sarah — who made the switch last year. She was doing project work, mostly one-off blog packages and white papers. She was earning around $8,000 a month on average, but some months were $5,000 and others were $12,000. And she was spending easily 10 hours a month just on proposals and onboarding new clients. Luna: Ugh, the admin tax. That's real. Lucas: Yeah. So she decided to pitch a retainer to her three best clients. Her offer was: you pay me $4,000 a month, and in return I'll produce two blog posts, one newsletter, and be available for two hours of strategy calls per month. She estimated it would take about 25 hours of work. That's $160 an hour, which was actually slightly higher than her project rate. But the real win was that she locked in three retainers — $12,000 a month, guaranteed. No more proposal writing, no more chasing invoices. Her income went up about 40 percent, and her hours actually went down. Luna: But isn't there a risk of scope creep? Clients start asking for 'just one more quick thing' and suddenly you're working 40 hours for that same $4,000. Lucas: That's the classic retainer trap. And Sarah avoided it by being very clear in her contract. She defined the scope in terms of deliverables, not hours. For example, 'two blog posts of 1,500 to 2,000 words each' not 'ten hours of writing'. That way, if the client wants a third post, it's a separate project. She also built in a monthly check-in where they review what was delivered and what's coming next. That creates a natural boundary. Luna: So the retainer is essentially a subscription for marketing services. I'm wondering — what's the psychology for the client? Why do they agree to pay a fixed monthly fee rather than just buying projects as needed? Lucas: Part of it is convenience. They don't have to go through procurement every time they need a blog post. But a bigger factor is the relationship. A retainer signals commitment. The client sees you as part of their team, not just a vendor. That leads to better work because you understand their brand, their voice, their audience. It's the difference between a one-night stand and a marriage. Luna: Okay, so if I'm a freelancer listening right now, what's the first step? How do I figure out what to charge for a retainer? Lucas: Start with your target annual income. Let's say you want to make $120,000. That's $10,000 a month. But you're not working 12 months a year — account for vacation, sick days, and non-billable time. Most freelancers find they have about 10 productive months a year. So you need to earn $12,000 per working month. If you want to have three retainer clients, each retainer should be around $4,000 a month. Then reverse-engineer the scope: how many hours per week can you realistically give each client? If you want to keep it to 10 hours per client per week, that's 30 hours total. At $4,000 for 10 hours a week — that's about 40 hours a month — your effective hourly rate is $100. That's reasonable for an experienced marketer. Luna: And what if you can't fill all three retainer slots right away? Do you mix retainers with project work? Lucas: Absolutely. Most freelancers start with one retainer and fill the rest with projects. But here's the key: treat the retainer as the foundation. Even one retainer at $3,000 a month covers your basic rent and food. Then any project work is gravy. That reduces the stress of landing the next project. Luna: That makes sense. I've also heard that retainers can lead to better client retention. Is that true? Lucas: Completely. A study by the Content Marketing Institute found that clients on retainer stay on average 18 months, compared to 6 months for project-based clients. Why? Because the switching cost is higher. Once a client has integrated you into their workflow, it's a hassle to replace you. Plus, you're producing consistent work, so they see the value every month. It's a virtuous cycle. Luna: But there's a flip side, right? What if the client wants to cancel? Do you lock them into a contract? Lucas: Most freelancers use a month to month agreement with a 30-day notice period. That gives both sides flexibility. Some freelancers offer a discount if the client commits to three or six months upfront. For example, $4,000 month to month, but $3,500 if they prepay for six months. That gives you cash upfront and reduces churn. Sarah actually did that with one of her clients, and it helped her buy a new laptop without dipping into savings. Luna: Quick honest thing — and I know Lucas feels the same way — a handful of listeners chip in monthly through buy me a coffee dot com slash fexingo, and that's literally what funds making this many of these episodes. No ads, no sponsors, just people who find value in these conversations. Lucas: Yeah, it's real. And it's not a big ask. If these marketing insights have helped you in your career, that's the only reason we're able to keep the show ad‑free and focused on practical stuff like this retainer breakdown. Luna: So back to retainers — I want to talk about how you actually pitch one. Do you wait for the client to ask, or do you proactively propose it? Lucas: You absolutely propose it proactively. After a successful project, when the client is happy with your work, that's the perfect moment. You say something like, 'Hey, I've really enjoyed working with you. I'd love to make this ongoing. Here's what a monthly retainer could look like.' Then you present a simple one-pager with the scope and price. Sarah told me she sent a three-sentence email: 'Loved working on the white paper. I have capacity for a monthly retainer starting at $4,000. Would you be open to a quick call to discuss?' And two of her three clients said yes within a week. Luna: So keep it low-pressure. I like that. What about the actual scope? How detailed should you be? Lucas: Detailed enough to avoid ambiguity, but not so detailed that it becomes a legal document. List the specific deliverables: '2 blog posts per month, 1 monthly newsletter, 2 hours of strategy calls per month.' Also include what's not included — like social media management or paid ads — so there's no confusion. And then include a clause that says any additional work will be billed at your hourly rate, with prior approval. Luna: What about the payment terms? Net 30? Net 15? Lucas: Net 15 is becoming standard in 2026, especially for retainers. You invoice on the first of the month, and the client pays by the 15th. Some freelancers even ask for payment upfront for the first month, to test the relationship. And always include a late fee — something like 1.5 percent per month on overdue balances. It signals that you're serious about your business. Luna: I'm thinking about the tax side too. If you have multiple retainers, you're essentially running a small agency. Do you need an accountant? Lucas: At $10,000 a month or more, absolutely. You should have a CPA who understands freelancer taxation. Quarterly estimated taxes, deductions for home office and equipment, maybe even an S-corp election if you're earning over $80,000. But that's a whole separate episode. For now, the key takeaway is that retainers make your income predictable, which makes tax planning easier too. Luna: So what's the one thing you'd tell a freelancer listening to do tomorrow? Lucas: Identify your best current or past client — the one who gave you repeat work or who you genuinely enjoyed working with. Reach out to them with a simple retainer proposal. Don't overthink it. Start with one retainer. See how it feels to have that recurring revenue. I bet you'll never go back to pure project work. Luna: I think that's a solid challenge. We'll check back in a few months and see who made the switch. Lucas: Deal. And if you do, let us know how it goes. We love hearing from listeners who put these ideas into action.