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Earned upon Receipt Retainer Agreement

Earned Upon Receipt Retainer Agreement: What It Is and How it Works

If you’re a freelancer or a service provider, you may have heard of an “earned upon receipt” retainer agreement. This is a type of retainer agreement that requires clients to pay the full retainer fee upfront – before any work begins, and before any payment is earned.

In this article, we’ll take a closer look at earned upon receipt retainer agreements and how they work.

What is an Earned Upon Receipt Retainer Agreement?

An earned upon receipt retainer agreement is a type of retainer agreement where the client pays the full retainer fee upfront, before any work has been completed. In other words, the payment is earned upon receipt of the retainer fee.

Retainer fees are typically used to secure the services of a freelancer or service provider for a set period of time, such as a month or a quarter. The client pays the retainer fee upfront, and the freelancer or service provider agrees to provide a set amount of work or services during that time period.

In an earned upon receipt retainer agreement, the client pays the full retainer fee upfront, and the freelancer or service provider is then able to start work immediately, without having to wait for any payments to be earned. This can be beneficial for both parties – the client can rest assured that the freelancer or service provider is committed to the project, and the freelancer or service provider can start work immediately without any financial concerns.

How Does an Earned Upon Receipt Retainer Agreement Work?

An earned upon receipt retainer agreement typically includes the following elements:

1. Scope of Work: The scope of work outlines the specific tasks or services that the freelancer or service provider will provide during the retainer period.

2. Retainer Fee: The retainer fee is the amount that the client pays upfront to secure the services of the freelancer or service provider. In an earned upon receipt retainer agreement, this fee is paid in full upfront.

3. Payment Terms: The payment terms outline the specific payment schedule for the retainer fee. In an earned upon receipt retainer agreement, there is typically only one payment – the full retainer fee – which is due upon receipt.

4. Termination Clause: The termination clause outlines the circumstances under which either party can terminate the retainer agreement. This can include issues such as non-payment, breach of contract, or changes in the scope of work.

Benefits of an Earned Upon Receipt Retainer Agreement

There are several benefits to using an earned upon receipt retainer agreement:

1. Financial peace of mind: By paying the full retainer fee upfront, the client can be assured that the freelancer or service provider is committed to the project and has no financial concerns.

2. Faster project start: Since the freelancer or service provider receives payment upfront, they can start work immediately, without having to wait for any payments to be earned.

3. Reduced administrative burden: With only one payment to manage, both the client and the freelancer or service provider can save time and effort on administrative tasks.

Conclusion

An earned upon receipt retainer agreement is a type of retainer agreement where the client pays the full retainer fee upfront, and the payment is earned upon receipt. This can be beneficial for both parties, providing financial peace of mind, faster project starts, and reduced administrative burdens. As always, it’s important to carefully review and negotiate all contract terms before agreeing to any retainer agreement.