How long you lock a retainer changes the economics of your agency. Neither is always right — it depends on what you are optimizing for.
Annual: stability and cash
Annual contracts smooth cash flow and cut churn, and annual prepay can improve margin. The trade-off is a higher bar to close.
Month-to-month: lower friction
Easier to sign, but easier to cancel. You live and die by delivered value every month.
A blended approach
Many agencies start month-to-month to lower the entry bar, then convert proven clients to annual at renewal.
Bill either cleanly
Both need reliable recurring billing and a branded portal — and clear MRR visibility. HubWho handles both models.