Imagine two clients of the same agency. One wants a website built by a launch date. The other wants steady content and ad management for a year. Both could be quoted a retainer. Only one of them should be.
Project fees: when the work has an end
A project fee suits work with a clear deliverable and a finish: a website, a landing page, a shoot, a campaign for an event. The benefit is a known price. The risk is scope: the fee is for what was written down, and anything else is a change request. So write the scope carefully, including how many revisions are included.
Retainers: when the work continues
Ongoing work, such as ad management, content and reporting, fits a monthly fee. The agency can plan capacity and you get continuity. The risk is a scope that erodes. Insist that the deliverables are named each month, so that "the retainer" does not shrink into a list of vague hours.
Performance-linked fees
These sound attractive: pay only when results arrive. In practice they create complicated incentives. If the fee depends on the number of leads, the incentive is to produce more leads, not better ones. If it depends on sales, you and the agency need agreement on how a sale is recorded and who controls the sales process. Some hybrid structures work, with a base fee for the work and a smaller variable part tied to something both sides can verify. Treat any pure performance offer with caution, particularly if the definition of a result is loose.
| Structure | Best for | Main risk | Protect yourself by |
|---|---|---|---|
| Project fee | A website, a shoot, a campaign | Scope creep, and change charges | A written scope and revision limit |
| Retainer | Ongoing ads, content and reporting | The scope shrinks quietly | Named monthly deliverables |
| Percentage of spend | Large stable ad budgets | Fee rises with spend | A cap or tiered rate |
| Performance-linked | Rarely, and only as a hybrid | Bad incentives | Agreed definitions you can verify |
Terms worth putting in writing
- Ownership. Ad accounts, analytics, designs and raw files belong to you, or are transferred on exit.
- Notice. A period that lets you leave without penalty if results are not there.
- Reporting. What you receive, how often, and who explains it.
- Change process. How extra work is quoted and approved.
- People. Who works on the account, and what happens if they leave.
What a good scope statement contains
- The goal, in a sentence.
- The deliverables, listed by number and format.
- What is not included.
- Timelines and dependencies, such as when you will provide content.
- How many rounds of revision are included.
- How extra work is requested, quoted and approved.
An exit clause checklist
- A notice period that is proportionate.
- Transfer of accounts, files and passwords on exit.
- A final report handed over.
- Clear terms for work already started.
Agreeing these at the beginning makes the relationship easier, because neither side is guessing.
Start with the smallest useful piece
If you are unsure which structure to choose, buy a bounded piece first: a diagnosis, a landing page or a single campaign. It costs less than a retainer, it shows you how the agency works and it gives you facts to choose the longer structure with. Both sides make better decisions with evidence than with promises.
Plan the renewal conversation early
For any fixed-term agreement, agree when you will review it and what you will look at. A short conversation at the halfway point, covering what has worked, what has not and what to change, prevents surprises at the end and often improves the work in the second half.
How we handle it
Projects and ongoing work are quoted differently. We start with a short diagnosis, which is a bounded piece of work, and then propose a structure that fits what follows. We recommend that ad accounts remain in your name, and that ad spend is paid directly to the platform. For an overview of prices, see what a digital marketing agency costs in Pune.