When does flat fee, retainer, or performance-based win for you (project type, deal size, timeline)?
Flat fee (fixed-price, project-based)
• What it is: One agreed price for a clearly defined scope and deliverables, often paid in milestones (e.g., 40/40/20).
• Usually best for: Well-scoped builds (site, brand kit, audit).
• Watch-outs: Scope creep → use change orders; define acceptance criteria.
• Example: €12k for a 15-page site incl. design, dev, QA, launch.
Retainer (recurring, capacity/access)
• What it is: A recurring fee (monthly/quarterly) for ongoing work, reserved hours, or service levels.
• Usually best for: Continuous needs (content, CRO, maintenance, media ops).
• Watch-outs: Under/over-utilization—set SLA, utilization targets, rollover rules.
• Example: €3k/mo for up to 25 hrs + 2-day turnaround on requests.
Performance-based (pay for results)
• What it is: Compensation tied to outcomes: CPL/CPA/CPO, revenue share, ROAS bonuses, success fees.
• Usually best for: Measurable funnels with solid tracking and volume.
• Watch-outs: Attribution disputes, seasonality risk—set baselines, floors/caps, verification method, lockout periods.
• Example: €1,500 setup + €40 per qualified lead (capped at €6k/mo), +10% bonus if CAC < target.
How do you define scope and "success" (KPIs, attribution window), set floors/caps/bonuses, and handle risk (prepay %, cancellation, clawbacks)?
Share your favorite hybrids (e.g., modest retainer + success bonus), typical ranges, and one quick example where it worked or failed and why.
Thanks for sharing!
For Media Management: I typically flat fee media spends over $50K/month as a 1-3 hour scope swing is within the overall retainer. If anything goes above that, then it's likely something larger we didn't talk about. This works out well when you managing multiple platforms (Google, Bing, META, Simpli.fi, etc.) and you need to provide more time with reporting and asset management.
Smaller accounts have a minimum I won't go below, but typically charge on percentage if I feel there is growth potiential and we can scale the scope.
For Development: I typically start with a flat price/scope - then charge hourly rate if we go beyond the estimated scope. I have also put a "cap price" on projects before. For example, $15K is the quoted price - but added not to exceed $20K. Building in the extra allowance allows us to set expectations and not have to ask for future approvals if the client asks for more.
Choosing between a flat fee, retainer, or performance-based pricing model depends on the project scope, budget, and long-term goals.
A flat fee suits one-time, well-defined projects where costs and deliverables are clear.
A retainer model works best for ongoing services such as SEO, web maintenance, or digital marketing, offering consistency, strategic planning, and sustained growth.
For long-term partnerships, the retainer model typically delivers the most reliable outcomes, as it fosters collaboration, accountability, and continuous improvement aligned with evolving business objectives.
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