Project income has to be won again every month. In Function Point's 2025 industry survey, 58% of agency owners said growing and maintaining revenue was their number one daily challenge, and the share of agencies naming new customer acquisition as their main revenue driver fell from 80% in 2023 to 36% in 2024. This is a condensed version of iwhitelabel.io's guide to recurring revenue for agencies.
Four recurring revenue models
Indicative ranges from Client Growth Engine, an agency growth consultancy. Treat them as a rough guide, not a benchmark.
| Model | What it is | Typical monthly price | Typical margin |
|---|---|---|---|
| Service retainers | A fixed monthly fee for ongoing work such as SEO, content or support; growth is limited by how many people you can hire | $1,000 to $10,000 | 30% to 50% |
| Productised services | A standard package with the same deliverables for every client, easier to delegate and automate | $500 to $2,500 | 40% to 60% |
| White label software | A branded platform you resell on subscription, maintained by the vendor | $197 to $997 | 50% to 70% |
| Hybrid bundles | Software plus services in one package | $997 to $2,997 | 40% to 55% |
Promethean Research's 2025 report found that 88% of agencies offered both projects and retainers, so the aim is a recurring base with projects on top.
Five steps
- Audit your client base: list the work you already repeat, such as support, updates, hosting, reporting and content.
- Offer the care plan in the original proposal: security monitoring, uptime, updates and backups.
- Productise delivery: fixed monthly deliverables per tier, for example hosting, SSL and a client portal at entry level, then online booking and automated reporting, then managed digital signage.
- Bundle infrastructure you can resell: reseller hosting plans let you bill hosting under your brand.
- Keep recurring revenue separate: setup fees and project invoices stay outside MRR. Gainsight warns that blending them inflates ARR and hides churn risk.
InMotion Hosting notes that this takes three to six months before the first invoice goes out.
Where white label software fits
You license a tool built and run by another company, put your logo and custom domain on it (for example clients.youragency.com) and charge clients a monthly fee. Types the guide maps to a monthly offer: web hosting, SSL, reporting and analytics, client portals, appointment scheduling, digital signage and video surveillance.
Calculating MRR, ARR and NRR
MRR = sum of active monthly retainers and subscriptions (annual plans ÷ 12)
ARR = MRR × 12
NRR = (starting MRR + expansion − contraction − churn) ÷ starting MRR
The NRR formula follows ChartMogul. Illustrative example from the guide:
| Line item | Price per client per month | Clients paying | Monthly total |
|---|---|---|---|
| Website care and maintenance (agency service) | $150 | 10 | $1,500 |
| Reporting and account management time (agency service) | $200 | 10 | $2,000 |
| White label web hosting | $50 | 10 | $500 |
| White label client portal | $50 | 10 | $500 |
| White label online booking | $75 | 4 | $300 |
| MRR | $4,800 | ||
| ARR | $57,600 |
A $500 setup fee from a new client is non-recurring, so MRR stays at $4,800.
Twelve months later, 5 clients add booking (+$375), 1 drops the portal (−$50) and 1 leaves (−$450):
NRR = (4,800 + 375 − 50 − 450) ÷ 4,800 = 4,675 ÷ 4,800 ≈ 97%
Had that client stayed, NRR would be 5,125 ÷ 4,800, about 107%.
Full guide, with sources and an FAQ: Recurring Revenue for Agencies on iwhitelabel.io.
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