How to Build a More Profitable Retainer Model for Your Agency

About this Episode In this episode of the Agency Profit Podcast, Marcel is joined once again by operations expert Carson Pierce to unpack one of the most misunderstood but critical revenue models in the agency world: retainers. Together they trace the history of retainers from professional services to modern digital agencies and explain why the popular “bucket of hours” approach often creates hidden debt, cash flow strain, and operational chaos. Using Parakeeto’s pricing model quadrant, Marcel and Carson outline how agencies can match retainer structures to risk and value, whether that means time and materials, flat monthly deliverables, or performance-based fees. They also dig into account management nuances, from “yes and” flexibility with T&M to “yes but” tradeoffs in fixed scope and share profitability levers like the “3 Rs” (recapture, rescope, replace). For agency leaders who rely on recurring revenue but struggle with sustainability, this conversation offers clarity on how to structure retainers that protect margin, support proactive planning, and strengthen client relationships.

Om Podcasten

Welcome to the Agency Profit Podcast hosted by Marcel Petitpas, CEO and Co-Founder of Parakeeto. Finally, an agency podcast that isn't JUST about getting more clients. On the show, we bring in experts, agency owners and consultants to share their actionable tips for improving profitability and operational efficiency. Here, you'll learn what systems to implement in your business, what kind of KPI's to track, and benchmarks to aim for. How to manage things like capacity, utilization, billing rates, processes and procedures, what tools to use, mistakes to avoid and so, so much more. If you're tired of putting out fires, working long hours, and growing revenue but not profits, you're in the right place.