What is the difference between retainer and advance fee?
Asked by: Kara Collins Sr. | Last update: November 17, 2025Score: 5/5 (50 votes)
Unlike general
What does a retainer fee mean?
A retainer fee is the upfront cost of a service before the service has been performed. In other words, it's a form of advance payment often required by a consultant, lawyer or freelance professional. For example, a lawyer charges their client a retainer fee prior to the client using their services.
Do you ever get your retainer fee back?
In most states, money paid to an attorney as a ``retainer'' is not a deposit for legal services rendered or to be rendered and is immediately earned and not subject to refund.
What are the disadvantages of a retainer fee?
Cons of a retainer pricing model
They can easily lead to unintentional underservicing or over servicing of clients, with your company producing either less than a client expects, or more than you've anticipated.
Why do lawyers want a retainer fee?
About retainer fees
A retainer fee can be used to guarantee that the lawyer will be available to take a particular case. With this type of agreement, the client would be billed additionally for the legal work that is done.
2 Types of Consulting Retainers and How to Use Them Effectively
How much is the average lawyer retainer fee?
A lawyer retainer fee varies widely based on factors such as the lawyer's experience, location, and the complexity of the case. On average, retainer fees can range from $1,000 to $5,000. For instance, in family law, retainers typically fall between $2,000 and $5,000.
What are the rules for retainers?
DO NOT wear the retainers while participating in sports or swimming. NEVER eat anything while wearing your retainers. It's OK to drink water while wearing the retainers, but remove them if you drink other beverages. If you forget to wear your retainer, wear the retainer full-time for few days to re-align your teeth.
Are retainer fees negotiable?
Absolutely. I'm going to give you a few tips for negotiating a retainer agreement with a new client, as well as some examples of retainer agreements and how they work. But first, let's discuss some of the main benefits for clients who sign these types of agreements.
What happens when retainer fee runs out?
If your retainer fees are depleted but your case is ongoing, your responsibility for payment for future work on your case will be spelled out by the retainer fee agreement that you signed with your attorney or law firm.
Can you fire your lawyer and get your retainer back?
If either you or your attorney terminate the relationship before the retainer is exhausted, and if allowed by the agreement and applicable laws, the remaining portion of the retainer may be refundable. Ensure the termination terms in your agreement are clear and consult a legal professional if needed.
Do you have to pay a retainer fee upfront?
A retainer fee is an upfront payment to secure the services of a lawyer, consultant, freelancer, or other professional. A retainer fee is most commonly paid to third parties that the payer has engaged to perform a specific action on their behalf. These fees only ensure the receiver's commitment.
What is the difference between a deposit and a retainer fee?
In a definitive sense, a retainer is a fee that is paid in advance in order to hold services (ie. a wedding or event date). While a deposit may also reserve a date, it is returned when the services have been completed. A retainer is by default non-refundable and is not returned.
Is a retainer fee refundable?
However, sometimes business concludes before earning all the retainer monies; maybe by settlement; maybe the client changed their mind; or maybe the attorney gets fired. California Rules of Professional Conduct, Rule 3-700(D)(2) says that attorneys can't keep money that they haven't earned at the end of employment.
Do you have to pay a lawyer upfront?
In some instances, a lawyer may ask you to pay a certain amount before they begin to work on your case. The attorney then bills his expenses and time against the retainer fee as your case progresses.
What are the benefits of a retainer fee?
Benefits of a retainer
It helps to establish trust between the two parties and creates an amicable working relationship. As a service provider, it helps to ensure that they receive full payment for the work they provide. In addition, it helps to set a realistic budget for the services offered.
How much is a normal retainer fee?
Retainer fees for attorneys work as an advance fee. Lawyers hold the fee in a dedicated account and deduct it after they complete the work. Clients can either make an online payment for the fee or they can opt for a traditional payment method. The average lawyer retainer fee can be around $2,000.
What is an example of a retainer fee?
Example of a Retainer Agreement
For example, the attorney may project that he will spend 10 hours, at an hourly rate of $100, amounting to a $1,000 retainer fee. If in the first month, the lawyer spends four hours on the case, he will charge $400 against the $1,000 retainer fee, leaving a balance of $600.
Can a lawyer charge you for emails?
Many lawyers charge for their time every six minutes, and will round up. They may also charge you for time their staff spends on your case. You will be billed for small tasks like writing emails and answering your phone calls.
What happens if you don't pay a retainer fee?
If You Don't Pay the Retainer
The attorney might charge you a service fee or interest on the overdue balance or take out a lien on your documents or other property the attorney has. In other words, you won't get your stuff back until you pay the attorney's bill in full.
Do lawyers get paid before medical bills?
How your settlement is paid out can vary widely on a case-by-case basis. However, generally, attorneys will not get paid before your medical expenses. Your attorney will get you caught up so you can start fresh once your settlement check comes in.
Do consultants charge a retainer fee?
Clients usually pay these fees upfront before consulting services begin. Although many consultants require full payment before they begin working, a retainer fee can also be a small sum that clients pay to secure service. In these cases, consultants often receive the remainder of their fee on completion of a project.
How much does a retainer cost?
In general, a removable wire retainer may cost approximately anywhere between $150 and $600 in the U.S. Clear plastic removable retainers tend to ring up around $400 to $800.
How does a retainer work?
Lawyer retainers are fees paid upfront by the client to secure the services of an attorney. They reserve the time and expertise of a lawyer, making them accessible to the client for an agreed-upon time. They also provide peace of mind that the client has dedicated legal representation when they need it.
What are the rights of retainer?
Right of Retainer: When someone is in charge of taking care of money or property for someone else, they have the power to keep some of that money or property if the person they are taking care of owes them money. This is called the right of retainer.