Retainer and projects both play a vital role in running an advertising agency successfully and grow with time and touch the new heights in the business taking over the risk involved in the process. Moving our sight towards the budget it is a key consideration for all whether it is a retainership agreement or a project or an agency budget is the deciding factor at the initial step. Both have their importance in terms of generating revenues and facing new challenges giving strength to further grow in business and keep it running. Merits and demerits are attached with projects as well as retainer ships.

Retainership

1.Duration

Lasts for a longer duration mostly more than 6months

2.Stability

A stability is assured in retainership.

3.Needs

In retainership, we can measure input and output and there is always work & ongoing needs of a client.

4.Scope & Opportunity

 In terms of scope there is an unclear scope & work is always there big or small.

5.Revenue Flow

Retainership can have a revenue flowing in for a particular duration of time.

6.Budget

A) As it is a long term commitment, budget is reduced by the client at the time of contract.

B) Budget is decided at the time of the contract signed

7.Range of Services

In retainership agreement there are broad range of services and client requirements are never ending process

8. Priority

A)Needs are prioritized over projects by the client and agency.

B)Have to complete a small assignment leaving other big projects on time

 

Project

1.Duration

Lasts for a shorter time span based on the project as compared to retainers.

2.Stability

Projects are not stable as it may or may not come.

3.Needs

Projects are basically defined as one time deliverable.

4.Scope & Opportunity

we find a well defined scope & opportunity in projects a total opposite of retainership.

5.Revenue Flow

Can generate more revenue than expected giving experience about a particular pattern of assignment & sometimes no revenue at all.

6.Budget

A)It is a short term commitment, where budget is not reduced.

B)Budget is decided according to the project whether it is a campaign or a small logo.

7.Range of Services

on contrary once the project is completed by an agency there is no more work by client.

8. Priority

A)Priority in projects lays on first come, first serve basis.

B)There is a freedom to work in projects accordingly.

 

Precisely looking for the advantage of the agency retainerships and projects both are necessary for an enterprise. Both holding risks as well as advantages in the further development of an agency.