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Why we don't accept 6-month retainer lock-ins

Most SEO agencies require 6-12 month contracts. We work month-to-month. Here's the operational reasoning — and what it means for our clients (and our cash flow).

KLKanoktip LergdeeCEO & Founder5 min read
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Almost every SEO agency in Thailand requires a 6-12 month retainer contract. We don't. We work month-to-month, and any client can cancel at the end of any month with no exit fees.

This is unusual enough that prospects ask us about it constantly. Here's the operational reasoning, the trade-offs, and what it actually means for clients.

Why agencies usually require long contracts

The surface reason is "SEO takes 6-12 months to produce results, so you need to commit for that period." That's half-true. The other half — usually unsaid — is cash-flow management.

A 6-month contract guarantees 6 months of revenue. The agency can plan headcount, take on supporting infrastructure, and avoid the operational hassle of client churn mid-engagement. From the agency's perspective, the lock-in solves real operational problems.

We understand the reasoning. We chose differently because we think it creates the wrong incentives.

Why long contracts create bad incentives

When a client is locked in for 12 months:

  • The agency stops needing to demonstrate value monthly

    the money's already committed

  • Slow months don't get explained

    there's nothing the client can do about it

  • Strategic disagreements get ignored

    the client can't vote with their feet

  • The relationship calcifies

    agency-client dynamics that were fine in month 2 might be wrong by month 9, but there's no clean off-ramp

We've seen this from the client side at past companies. By month 6 of a locked retainer, you can tell when the agency has mentally moved on but is still cashing the cheque.

What month-to-month means operationally

Working month-to-month forces us to ship visible value every month. Concretely:

  • Every month produces a written report comparing actual results to the KPIs we set at the start
  • Every month we have a 30-minute call with the client to review what worked, what didn't, and what's next
  • Every month the client can ask "is this still worth it?" and we have to answer honestly
  • If the answer is no, they leave and we lose the revenue

This disciplines our work. We can't drift. We can't bury slow months in long PowerPoints. We can't sell strategy that doesn't produce.

What it costs us

It's not free, operationally. Working month-to-month means:

  • Higher churn risk if a client has a bad month for reasons outside our control (their site went down, their main product changed, the algorithm moved against them temporarily)
  • Harder to plan headcount — we can't confidently hire a senior strategist if a client could cancel next week
  • More time per client on retention — proving value monthly is more work than producing the same value annually
  • Lower theoretical revenue per client — locked retainers extract more total dollars from clients who would have left earlier

We accept those costs because we think the alternative — locked-in but unhappy clients — is worse for both sides.

What it means for clients

For a client deciding between us and a locked-in agency:

You give up: the slight discount agencies sometimes offer for long contracts (5-15% off in our market)

You gain:

  • The ability to cancel if the work isn't producing
  • The leverage to demand monthly improvements
  • A clear mental model: every month is a yes/no decision
  • Confidence that if we keep the engagement, it's because we kept earning it

Most clients who choose us specifically over locked-in competitors cite the cancel-anytime clause as the deciding factor.

What happens at the 90-day mark

The interesting data point: very few clients actually cancel at the 90-day mark, which is when most SEO work starts producing visible results but locked-in alternatives would have committed them to another 9 months.

The pattern we see: clients who plan to "test for 90 days" with us almost always continue past 90 days because by then they can see the work compounding. The optionality of being able to cancel matters more than actually using it.

We have a 90% renewal rate month-over-month at the 12-month mark, which is roughly the same as locked-in competitors. The difference: our clients renew because they want to, not because they have to.

When this model is wrong

The month-to-month model fits Thai SMB SEO well. It fits worse for:

  • Multi-year platform migrations where the work doesn't produce visible value for 6+ months but is essential
  • Enterprise B2B with locked annual budgets where the procurement process can't accommodate monthly billing
  • Very large engagements (฿200K+/month) where the agency needs hiring stability to execute

For those, longer commitments make sense — but they should still be milestone-based with the right to exit if milestones miss, not blanket lock-ins.

What we ask of clients in exchange

The model only works because our clients also commit to:

  • Honest monthly conversations about whether the work is producing
  • Reasonable patience — SEO is multi-month work and one slow month isn't a reason to fire us, but six slow months absolutely is
  • Communication when things change on their side (new product launch, team changes, budget shifts) so we can adjust strategy

It's a relationship that requires both sides to show up. The alternative — pretending everything is fine while the work decays — isn't worth the locked revenue.

If you're talking to multiple agencies and one of them is offering month-to-month while another is requiring 12 months, ask the locked-in one to justify why the lock matters operationally. The honest answers usually reveal more than the marketing materials do.

KL
Written by
Kanoktip Lergdee
CEO & Founder

Thai national, founded Backlink Hut in Pattaya in 2019. Writes about Thai search behaviour, local-market SEO, and honest agency operations.

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