A retainer is a payment made by a client to a professional [someone who has specialized knowledge or skills], such as a lawyer or consultant [a person who provides expert advice or services], in order to secure their services for a specific period of time. The retainer fee acts as a guarantee of future work and is typically paid upfront.
- A client may hire a lawyer and pay a retainer fee of $5,000 to ensure that the lawyer is available to handle their legal needs for the next six months.
- A company may retain the services of a marketing consultant by paying a monthly retainer fee of $1,000 to have the consultant provide marketing advice and support whenever needed.
Very Simple Definition:
A retainer is a payment that someone pays to a professional to make sure they can get help from that person when they need it.
- A person can pay a retainer fee to a lawyer to make sure the lawyer will help them when they have legal problems.
- A company can pay a retainer fee to a consultant to have them give advice and support whenever the company needs it.