097 – Why recurring revenue is more important now than ever

097 – Why recurring revenue is more important now than ever


Main talking points include:

Current sit rep – does this sound familiar to you? 

When Coronavirus hit the UK economy, this is what happened in our agency:

  • All clients with existing projects in production committed to finishing them, BUT and future phases were put on hold
  • All clients with projects agreed but not yet started, asked for the project to be put on hold – even if they’d paid their deposit.
  • All clients with projects on quote, put all quotes on hold until “normal” returns (whatever that looks like).
  • All clients on retainers continued working (2 reduced hours, but not substantially).

What we can learn from this is that when the pandemic hit, all businesses (in our agency anyway) followed a pattern… If they were already spending, they continued… If they weren’t they paused. 


The benefits of recurring revenue

Back in episode 55 we covered: 

  • Why recurring revenue is important for your business.
  • How we set up and manage recurring streams of income in our agency.
  • How we sell recurring services at different levels.
  • How to scale recurring services through outsourcing and partnerships.

BUT – you need to be intelligent about how you set it up. 

Key things to remember: 

  1. The recurring revenue model works best by serving a reasonable number of clients at a reasonable price point
  2. A recurring model needs to be accompanied by automated payments
  3. A recurring revenue model (like ANY revenue model) works on MARGINS, not solely cash value

    • The rule of thirds

      • 1/3 – Operating Expenses
      • 1/3 – Taxes
      • 1/3 – Profit <- this is where you get paid!!!
  4. Recurring services are easier to sell to existing customers
  5. Finding outsourced services to help you delivery your services



Profit First – Michael Michalowicz

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