Billing & Cash Flow
Deposit / Upfront Payment
Agency glossary · Updated July 2026
Definition
A deposit is a portion of the fee an agency collects before starting work, often 25 to 50%. It secures the client’s commitment, funds the early phase, and protects the agency if the project stalls or is cancelled.
Why it matters
Taking a deposit shifts cash-flow risk off the agency and filters out clients who are not serious. It is standard practice for project work and onboarding a new retainer.
Common structure
A percentage up front, then milestone payments or monthly billing, with the balance due on delivery.
Related terms
See it in AgencyKit
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