Joshua NelsonSeven Figure Agency · Mentor / Coach at Seven Figure Agency

Why Retainers Beat Percentage of Revenue: The Predictability Factor

Name: Why Retainers Beat Percentage of Revenue: The Predictability Factor
Uploaded: 2026-03-24T16:01:32+00:00
Duration: 23 s
Channel: Joshua Nelson
Description: In this excerpt, the speaker critiques the practice of charging clients a percentage of their revenue as a pricing model for agencies. Drawing on…

24 Mar 2026 · 0 min

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In this excerpt, the speaker critiques the practice of charging clients a percentage of their revenue as a pricing model for agencies. Drawing on personal experience and observations across many agencies, they argue that such a model leads to unclear, sticky arrangements and fails to deliver consistent, predictable income. The speaker emphasizes the need for reliable revenue streams in both personal and business contexts, positioning retainers as a more stable and successful alternative to percentage‑of‑revenue contracts.

I love the idea of having a percentage of revenue. I haven't seen it be really successful in my personal experience or in the hundreds of agencies that I've worked with. You know, typically we need consistent, predictable revenue in our lives and in our businesses. And just for whatever reason, when you try and say, hey, I'm gonna do this stuff for you and I'm gonna take a percentage of the outcome, it gets sticky, it gets unclear, and I haven't seen a lot of agencies win with it.