Insights from RGD Firm Owners on renegotiating long-term client contracts

Adjusting terms with long-standing clients is a crucial step in maintaining fair and sustainable business relationships.

Whether adjusting fees to reflect evolving market conditions or ensuring fair compensation for increased value, successful renegotiation requires a balance of transparency, strategic planning and relationship management; learn from RGD firm owners as they share their firsthand insights on how they’ve approached renegotiating client agreements—discussing their challenges, strategies and outcomes. 

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Yes, I’ve renegotiated terms with long-term clients, typically in the context of adjusting my fees to reflect the value I provide or changes in market conditions. When doing so, I prioritize open communication and transparency. I explain the reasons behind the adjustment, whether it’s due to expanded responsibilities, rising costs, or aligning with industry standards.

Each time, these discussions have been met with understanding and support, largely because I ensure my long-term clients feel valued. I demonstrate this by consistently delivering high-quality work and prioritizing their needs. These efforts foster mutual respect, which makes renegotiations a natural part of maintaining a strong, ongoing partnership.

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Q30 has been very fortunate to have many long-term vendors of record clients over our 34-year history – by long-term, I use the metric of a continuous relationship of 10 years+.

Most of these relationships are secured through an open tender RFP process, meaning they are competitive and the pricing is an important scoring component of the selection process. If they are multi-year contracts, we try to include a modest escalation in hourly rate fees over the course of the contract to help us manage inflationary cost increases, like studio overhead and staff salaries.

For other clients where we do not have a contractual agreement for fees, this requires a discussion with the senior client contact to negotiate existing terms. I have found that in most cases if the increase in fees aligns with the standard cost of living percentages, most are comfortable with modest annual increases. It is better to try to negotiate annually rather than wait several years to avoid what can be perceived as a big jump in fees.

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We have an ongoing client that we first started working with in 2018, under a long-term retainer agreement that reflected where both our agency and their business were at the time. Back then, we were a smaller agency and they were a pre-seed startup. Over the years, as their business grew and evolved—and as our expertise and value as an agency increased—the context of that initial agreement became outdated. The world also became more expensive, which added another layer of complexity.

Eventually, it was clear that we needed to discuss adjusting our costs. These conversations were never easy, but because we had built a strong foundation of trust and goodwill with the client, we could approach the topic constructively. One of the key ways we framed the discussion was by highlighting our shared accomplishments—essentially showing them the measurable impact of our work on their business. This approach made the conversation more collaborative and focused on mutual benefit.

Thankfully, the renegotiation went well and the client was receptive to the changes, which allowed us to adjust our rates appropriately. Costs will inevitably rise over time and addressing those changes early helps ensure fair compensation while avoiding the risk of resentment or compromising the quality of the work. It’s all about maintaining a relationship that works for everyone.