Retainers or projects? How commercial models shape client-agency relationships

How commercial models shape client-agency relationships

The commercial structure underpinning a client–agency relationship profoundly shapes how both parties collaborate, innovate, and perform.

Once upon a time most client-agency relationships were anchored in long-term retainers. These multi-year commitments had benefits for both parties. Clients could rely on a team fully committed and conversant with their brand and business. They gave agencies the stability to invest in talent, immerse themselves in a client’s business, and recover the often-considerable cost of pitching. The ANA and 4A’s recently put a price on this cost at an average of $1.2 million for an agency review in the US.

Today and the landscape looks a lot different. According to a recent article in Campaign magazine, over half (51%) of creative agency relationships are now project-based, and around 21% for media agencies. Flexibility, speed, and cost-efficiency are driving this shift. But as any agency leader or client partner knows, how a relationship is structured financially has profound effects on the trust, motivation, and outcomes the partnership produces.

There’s no ‘one size fits all’. The optimal structure depends on client’s needs, the agency’s capabilities, and the nature of the work. What is clear that each model has benefits and pitfalls. They each shape – and test – the quality of client-agency relationships.

I’ve been there. Agency leaders – in fact any consultancy leader knows the conundrum; A business based largely on projects means constantly having to maintain and build the business pipeline while being over-weighted on retainers means higher risk and dependency plus the potential for stale thinking to set in, risking team motivation.

Let’s discuss both.

Retainers: stability and shared investment

Retainer agreements – typically annual or multi-year contracts – provide a predictable foundation for both client and agency.

For clients, they ensure continuity, institutional knowledge, and faster turnarounds. Agencies with stable revenue streams can dedicate experienced teams, build deeper category understanding, and align more closely with the client’s strategic goals.

From the agency’s perspective, retainers provide breathing space – the opportunity to plan, innovate, and deliver beyond the brief rather than constantly chase the next job. This fosters loyalty, creativity, and shared accountability.

Much like management consultancies that embed teams within clients to support ongoing transformation, retainers encourage collaboration at a strategic level rather than transactional execution. When trust builds over time, agencies can challenge assumptions and drive innovation with confidence.

However, stability can also breed complacency. When teams know the next brief is guaranteed, the creative edge can dull. Clients, too, may take the partnership for granted, expecting the agency to absorb more work or respond faster without revisiting scope or compensation.

This risk is not unique to advertising. In the film industry, long-term production deals between studios and directors have sometimes produced diminishing returns — a comfortable familiarity that inhibits experimentation. Retainers can fall into a similar trap unless both parties periodically refresh expectations and performance.

Projects: agility and specialisation

Project-based relationships are the new normal for many marketers. They enable brands to move quickly, access a wider talent pool, and buy only what they need, when they need it. For agencies, projects can be exciting — each brief a chance to prove creative prowess, win visibility, and diversify income streams.

In many ways, this resembles the gig economy of gaming or tech development, where teams are assembled for a mission, then disbanded. It rewards speed, adaptability, and entrepreneurial spirit.

Yet the very flexibility that makes projects attractive can undermine the depth of collaboration. Without a long-term horizon, agencies may be less willing to invest in understanding the client’s business, and clients may be tempted to treat agencies as vendors rather than strategic partners.

“We can be either your partners or your suppliers. The fee model you choose will influence which one you get.”

From my personal experience, the grass always looks greener on the other side. A business overburdened with short-term projects can find itself in a constant scramble for revenue – diverting energy from creative excellence to business development. Conversely, an over-reliance on a few large retainers increases exposure if one client departs.

This tension mirrors challenges faced by independent consultants or boutique production houses. Feast-or-famine cycles can push teams toward short-term decisions that compromise quality or morale.

Finding the right balance

There is no universally superior model. The right structure depends on the client’s needs, the agency’s capabilities, and the nature of the work. But whatever the choice, success depends on how both sides manage the relationship.

Here are four key principles:

1. Define expectations clearly
   Whether retainer or project, scope creep and misaligned goals erode trust. Regularly revisiting objectives, deliverables, and performance metrics ensures both sides stay aligned.
2. Invest in relationship health
   Aprais’ benchmarking consistently shows that relationship quality correlates with performance. Even in project arrangements, taking time to review collaboration effectiveness – not just outcomes – improves satisfaction and results.
3. Build renewal moments
   Long-term retainers should include checkpoints to assess value, creativity, and engagement. Project-based partnerships can include post-mortems to capture learnings and signal readiness for future collaboration.
4. Encourage mutual risk-taking
   In consulting and entertainment alike, the best work emerges when both sides share risk and reward. Agencies that co-invest in innovation and clients that commit to fair compensation, create fertile ground for bold ideas.

Beyond the commercials: the human equation

At its heart, the debate between retainers and projects is less about finance than about human dynamics — trust, motivation, and shared ambition.

A retainer says, “We believe in you long-term.” A project says, “Prove yourself each time.” Both messages can inspire or demoralise depending on how they’re managed.

In gaming, for example, developers contracted for one title may deliver extraordinary results because they want a sequel. The incentive is future opportunity, not just the current fee. Likewise, agencies on project work can excel when clients show genuine interest in building continuity.

Conversely, a retainer that feels obligatory or underappreciated saps energy. Renewal – in mindset, not just contract – is essential.

The future: hybrid models

Increasingly, brands are blending the two models: retaining a core team for strategy and brand stewardship, while commissioning specialist agencies or freelancers for discrete campaigns.

This hybrid approach mirrors how Hollywood studios operate – maintaining in-house production leads while sourcing directors, writers, and effects teams per project. It offers the best of both worlds: continuity with flexibility, loyalty with variety.

But hybrid models still demand clarity of role and respect among all contributors. When multiple agencies compete for attention under one client roof, alignment and fairness become even more critical.

In closing

Whether through a retainer’s steady rhythm or a project’s sprint-like intensity, the true determinant of success is not the contract but the conduct.

Retainers can deepen trust but risk complacency. Projects can energise creativity but strain continuity. Wise clients and agencies understand these forces — and actively design their partnerships to balance them.

In the end, as in any enduring relationship, the healthiest client-agency partnerships are those that treat every engagement – however structured – as an opportunity to renew commitment, curiosity, and mutual respect.