Are you tired of constantly hunting for new clients?

While one-time projects can keep your agency afloat, creating recurring revenue streams is the key to long-term success and growth.

If you’re wondering where to start or how you can build out a system that keeps money flowing in, we’ve got you covered.

We’ve compiled a list of 12 ways to create recurring revenue for web agencies. We’ll also look into how you can make the most out of your recurring revenue strategy.

First let’s recap the basics of recurring revenue.

• What is recurring revenue?
• How to create recurring revenue for your web agency
• Tips for a successful recurring revenue model
• FAQs about recurring revenue for web agencies
• Final thoughts: Recurring revenue for web agencies — a blueprint for success

What is recurring revenue?

Recurring revenue is a concept in business that refers to the steady stream of income that a company can rely on over time, as opposed to one-time sales or transactions. This type of revenue is typically generated through subscriptions, memberships, contracts, or ongoing services. The key characteristic of recurring revenue is that it comes in regularly, usually on a monthly or annual basis, providing a predictable and stable income for the company.

One of the main advantages of recurring revenue is its predictability and reliability. Unlike one-time sales, which can fluctuate depending on market conditions or customer demand, recurring revenue provides a consistent source of income that can help a company weather economic downturns or other challenges. This steady cash flow can also make it easier for companies to forecast and plan for the future, as they have a clearer idea of their revenue stream over time.

Another benefit of recurring revenue is that it can help increase customer loyalty and retention. By offering ongoing services or subscriptions, companies can build long-term relationships with their customers, leading to repeat business and a higher lifetime value of each customer. This can also reduce the need for constant marketing and sales efforts to acquire new customers, as existing customers are already committed to the company through their recurring subscriptions.

In today’s digital economy, recurring revenue models have become increasingly popular, particularly in industries such as software, media, and technology. Companies are finding that offering subscription-based services can not only provide a more stable income stream, but also create more sustainable and profitable business models. As a result, many businesses are shifting towards subscription services or membership programs in order to capitalize on the benefits of recurring revenue.

Advantages that come with a recurring revenue business

One of the key advantages of running a recurring revenue business is the stability and predictability it provides. By securing a steady stream of income from loyal customers who consistently pay for your goods or services on a recurring basis, you can better plan for the future and maintain financial stability.

Additionally, having a recurring revenue model allows you to build stronger relationships with customers as they become more invested in your business over time. This leads to increased customer satisfaction and loyalty, resulting in higher retention rates and lower customer acquisition costs.

Furthermore, recurring revenue businesses often have higher valuation multiples compared to transactional businesses, making them more attractive to investors and potential buyers. Overall, embracing a recurring revenue model can lead to long-term success and sustainability for your business in today’s competitive market landscape.

How to create recurring revenue for your web agency

Creating a recurring revenue stream for a web agency is crucial for long-term success and stability. One of the most effective ways to generate recurring revenue is by offering a subscription-based service. This could include services such as website maintenance, content updates, or SEO optimization on a monthly basis. By offering these ongoing services, clients will see the value in continuing to work with your agency on a regular basis.

Another way to create recurring revenue is by implementing a retainer model for your clients. This means that clients pay a monthly fee for access to a certain number of hours of your agency’s services. This can provide a predictable income stream for your agency and incentivize clients to continue working with you over the long term. By providing consistent value and support to clients through a retainer model, you can build strong relationships and ensure repeat business.

Additionally, creating a membership site can be a great way to generate recurring revenue for your web agency. By offering exclusive content, resources, or tools to members on a subscription basis, you can provide ongoing value and build a loyal community of clients. This can help to create a steady stream of income and provide stability for your agency, even during slower periods.

Lastly, offering add-on services and upsells to existing clients can help to increase recurring revenue for your web agency. By identifying the specific needs and goals of your clients, you can offer additional services or upgrades that provide added value and meet their ongoing needs. This can help to increase customer satisfaction, encourage repeat business, and ultimately grow your agency’s recurring revenue stream over time. By implementing these strategies, your web agency can create a reliable and sustainable source of income that will support long-term growth and success…

Web agencies have various options to generate recurring revenue. These options range from reseller hosting and maintenance packages to services like search engine optimization (SEO) and social media management.

When exploring these options, consider adding new services to broaden your offerings or focus on providing recurring services that complement your current offerings to your customer base.

The goal is to increase client spending to meet revenue targets.

Provide Consultation Services

Many businesses require assistance in establishing a strong online presence. Whether a website is new or established, there is always room for improvement.

Offering a consultation program is an effective way to create recurring revenue for your agency.

Schedule weekly or monthly consultation calls to discuss and provide recommendations on areas such as:

• Web strategy
• Brand positioning
• Lead generation and website conversions
• Marketing strategies

Promote your ongoing consultation service through available channels, such as an email list. For instance, you can offer a discount to the first five clients who schedule a consulting session with you.

Offer consultation services

Many businesses need help to build a strong online presence. Whether a website is new or has been around for a while, something can always be improved. So, a consultation program is an excellent way to create recurring revenue for your agency.

Schedule weekly or monthly consultation calls where you can discuss and make recommendations on things like:

• Web strategy.
• Brand positioning.
• Lead generation/website conversions.
• Marketing strategies.

Use channels available to you (like an email list) to promote your ongoing consultation service. For example, offer a discount to the first five clients who book a consulting session with you.

For clients whose websites you’ve just completed, you can recommend ways to keep their websites in tip-top shape.

Become an Affiliate Partner

Besides offering consultation services, another good way to create additional revenue for your business is to become an affiliate.

The idea is to promote a tool or service that can be helpful to your customers. You’ll earn recurring affiliate commissions every time a user signs up.

Do your due diligence to ensure the program you sign up for is worth recommending to your clients — only put your reputation at stake for a tool or software that’s worth it.

In addition to providing consultation services, another great way to generate extra income for your business is by becoming an affiliate.

The concept is to promote a tool or service that can benefit your customers, earning you recurring affiliate commissions whenever a user signs up. Make sure to thoroughly research the program you choose to ensure it is worth recommending to your clients – only stake your reputation on a tool or software that is truly valuable.

For instance, GoDaddy.com offers a notable hosting affiliate program where you can earn unlimited income as your referral earnings are not tied to the number of referrals you bring in. Instead, you receive $150 or 150 percent of each sale.

The program utilizes cookie-based tracking that lasts for up to 90 days, and provides promotional materials to help you boost conversions. The best part? It’s free to join.

Offer reseller hosting packages

In addition to providing consultation services, another great way to generate extra income for your business is by becoming an affiliate.

The concept is to promote a tool or service that can benefit your customers, earning you recurring affiliate commissions whenever a user signs up. Make sure to thoroughly research the program you choose to ensure it is worth recommending to your clients – only stake your reputation on a tool or software that is truly valuable.

For instance, GoDaddy.com offers a notable hosting affiliate program where you can earn unlimited income as your referral earnings are not tied to the number of referrals you bring in. Instead, you receive $150 or 150 percent of each sale.

The program utilizes cookie-based tracking that lasts for up to 90 days, and provides promotional materials to help you boost conversions. The best part? It’s free to join.

Offer website maintenance packages

Have you considered offering a monthly retainer for website maintenance to current or potential customers?

It’s important not to overlook maintenance, as it helps websites run smoothly.

Your package could include tasks like regular backups, updates, bug fixes, server monitoring, and ongoing WordPress plugin renewals.

This could be particularly beneficial if your clients are ecommerce business owners, as their websites face higher security risks and increased traffic demands. They may struggle to keep up with maintenance internally, leading to neglect.

Small businesses and entrepreneurs can also benefit from this service, as maintenance can be time-consuming. Offering ongoing maintenance can help build strong, long-term customer relationships.

Provide web audit services

Offer retainers

With retainers, you allocate a certain amount of time to your clients each month.

Retainers offer customers assurance that you’ll set aside time for them. You can get paid in advance or once the work is complete.

So whether you offer weekly or monthly retainers, you’ll generate recurring revenue.

Retainers also allow you to stay top of mind, upsell additional services, and bu

Retainers involve dedicating a set amount of time to clients each month, providing them with the assurance that you will prioritize their needs. You can choose to receive payment in advance or upon completion of the work, allowing you to establish a steady stream of income whether you offer weekly or monthly retainers.

In addition to financial benefits, retainers help you maintain a strong presence in your clients’ minds, upsell additional services, and enhance your credibility within your industry.

A monthly retainer typically includes tasks such as website redesign, content updates, and SEO services – essential tasks that clients cannot afford to neglect.

While offering retainers can be advantageous, the way you structure them is crucial to your profitability. It is important to set prices based on the value of your services rather than the time spent on each project, and clearly define the scope of work and payment terms in your retainer agreement.

Create a members-only portal

Creating a reliable source of income can be achieved by setting up a members-only portal and offering it in exchange for a paid subscription.

Members will pay a monthly fee to access exclusive content such as digital downloads (ebooks, guides), interviews, videos, and templates.

A membership website allows you to offer more value, attract new customers, establish yourself as an expert, engage with customers, and gain a better understanding of their needs.

Create turnkey websites

A turnkey website allows the end user to start using their website immediately by simply “turning the key”. Essentially, it is a pre-made website that can be customized.

By creating turnkey websites, your agency can diversify its income stream. These websites are easy to create, scalable, and appeal to customers who may not be able to afford custom websites.

Sell SEO and content creation services

Businesses can improve their chances of being discovered by potential customers through search engine optimization.

Providing SEO and content creation services is a great way for agencies to generate extra income. By offering ongoing SEO services, clients can trust that all the hard work will be taken care of.

Performing website audits can help pinpoint SEO issues such as keyword stuffing, slow page loading times, and broken links. It may be beneficial to combine website audits, SEO, and content creation into different packages.

If you are unable to offer content creation services in-house, consider outsourcing to freelancers or forming a white-label partnership to deliver content like blog posts, thought leadership pieces, and website copy to clients.

Offer WordPress support

Considering that 43 percent of websites are built on WordPress, providing WordPress user support can generate a consistent income for your agency.

Furthermore, since WordPress only provides support through its forums, it is even more important to include it in your list of services.

The goal is to offer personalized support, something users may not receive from WordPress forums. By having a team knowledgeable in WordPress, you can offer more value to your clients and stay ahead of the competition.

In terms of competition, you may discover that they offer continuous customer service, putting you at a disadvantage if you cannot do the same.

One solution is to invest in chatbot software or create a self-service option, such as a knowledge base for common issues.

Manage social media accounts

Similar to handling your customers’ SEO strategy, you can offer to manage your customers’ social media accounts or social strategy to keep money flowing in.

For example, a 2022 Visual Objects report shows that 70 percent of small businesses invest in social ads. So it’s a good idea to pitch social media services to your customers.

A monthly retainer would work fine since social media requires continuous effort to see results.

You can create posts, repurpose blog content into social posts, collaborate with influencers on your clients’ behalf, and answer customer queries. In fact, 76 percent of marketers already offer customer service on social media.

Let’s wrap up our comprehensive list of recurring revenue for web agencies with graphic design.

Provide graphic design services

When managing your clients’ social media accounts, consider creating graphics to enhance their content.

Effective graphic design can significantly impact how a business is perceived, as people are naturally drawn to visuals.

To generate consistent income for your web design agency, you can also offer graphic design services for your clients’ ecommerce stores.

Providing ongoing graphic design services can make you indispensable to your customers. Surprisingly, 24 percent of businesses have reported that graphic design projects often take too long.

If you lack the necessary skills to offer graphic design in-house, consider partnering with a reliable external provider to assist you.

Tips for a successful recurring revenue model

After learning how to establish a recurring income stream for your company, it is important to remember that the process does not stop there. Here are three tips to help ensure the success of your recurring revenue business model:

• Ensure billing is transparent.You’ll find that many businesses reiterate that their product has “no hidden charges.” That’s because when billing is transparent, it builds trust, which can create long-term work for you and your team. You can invest in accounting software, especially as you scale and your systems become more complex.
• Be strategic with pricing. One word: value. How you price your packages can make a huge difference in your earning potential and how you communicate the value of your offerings to your clients. Price your offerings so that you and your customers come out on top.
• Know when to upsell. With a recurring revenue business model, it’s essential to be on the lookout for upselling or cross-selling opportunities. For example, if you offer content creation services, you can offer to develop a content strategy to generate additional income.

FAQs about recurring revenue for web agencies

Here are some of the most common questions regarding recurring revenue for web agencies.