5 Recurring Revenue Models for Digital Agencies 

In today’s fast-paced digital landscape, securing a steady stream of recurring revenue is vital for the growth and sustainability of any digital agency.

If you’re reading this, you’re likely on the hunt for ways to boost your agency’s recurring income.

For agency owners, relying solely on one-time project fees is far from ideal, especially for smaller digital outfits.

Predictable revenue is key to peace of mind and sustainable growth. We totally understand—been there, done that.

At UnlimitedWP, we felt the sting of striving for monthly recurring revenue ourselves, until we pivoted to a white label WordPress agency in 2019, adopting a model based entirely on recurring revenue (check out our productized pricing model for white label WordPress development). It’s been a game-changer, and given the amount of thought I’ve put into this lately, I’m eager to share some insights on the most effective recurring revenue models I’ve seen other digital agencies thrive on.

In this guide, I’ll walk you through 5 profitable recurring revenue models that your digital agency can adopt.

We’ll break down how each model operates, who it’s best suited for, and the potential earnings it can bring to your business.

Our goal with this guide is to help you pinpoint the perfect recurring revenue model examples for your agency, taking into account both initial website build fees and ongoing maintenance and digital marketing activities.

This model is a straightforward approach for digital agencies looking to streamline their billing process.

You start off by offering clients a custom quote for the entire project, covering everything from development, and project management fees, to marketing expenses.

Following the completion of the project, you switch to a simple hourly retainer for ongoing services.

The essence of this recurring business model lies in charging a one-time fee for the initial project build, followed by monthly invoicing for continuous support and services.

Once the project wraps up and gets the client’s thumbs up, you bill them for the total amount stated in the custom quote, including any additional work that may have arisen during development or post-launch.

This setup is ideal for clients with clear-cut requirements and deadlines. It allows them to adjust their expenses based on the time invested in their project.

Moreover, it enables you to establish a flat rate for specific tasks or request an upfront fee to kickstart the engagement.

This model is a popular approach among web development agencies. It combines a one-time fixed fee for website development with a monthly retainer for ongoing maintenance.

The client commits to a predetermined package price for the initial build, followed by a fixed monthly retainer fee covering a comprehensive maintenance suite and selected marketing services.

This arrangement ensures a steady flow of revenue for the agency while providing clients with the assurance of continuous support and service enhancements.

The upfront cost covers all aspects of creating a fully functional, SEO-optimized website, from the initial discovery phase through to development and launch.

The subsequent monthly retainer guarantees ongoing maintenance, security updates, and additional marketing services to keep the website performing optimally.

This model starts with a one-time fixed fee for the initial project development, like we’ve seen in the previous model, transitioning into a flexible, points-based system for ongoing services. Clients purchase points monthly, which they can allocate as they see fit across a variety of tasks—ranging from content creation to digital marketing efforts.

The points system is essentially a token of prepaid services, allowing clients to tailor their expenditures based on their needs each month.

It’s a way for agencies to provide a customizable menu of services, with the flexibility for clients to choose what they need without worrying about unused services rolling over.

Clients are encouraged to utilize all their points within the month, as they expire and do not carry over, ensuring a consistent monthly engagement.

This recurring business model promotes a proactive approach, allowing clients to strategically plan their marketing and maintenance efforts with the help of experts.

The key to this model is its adaptability and transparency. Clients know exactly how much they’re spending and what they’re spending it on, making it easier to budget and plan.

This points-based approach is ideal for small to medium-sized businesses that rely heavily on their website for lead generation, offering a clear, flexible path to manage their online presence.

Explore Chatter Buzz’s point-based pricing model in action by checking out their digital marketing plans and packages. See how this pricing strategy works in real-world scenarios.

This model offers a straightforward approach: a single, monthly recurring fee for the initial website build to ongoing maintenance and selected digital marketing services.

It’s designed to provide clients with a worry-free solution, ensuring a steady flow of recurring revenues for the agency and fostering trust and long-term client relationships.

One of the key advantages of this model is its appeal to customers seeking simplicity and predictability in their expenses. Eliminating the concern over high upfront costs encourages more businesses to commit to a digital presence, knowing they have continuous support at a manageable monthly rate.

This model significantly reduces customer acquisition costs (CAC), and streamlines business scaling by establishing a reliable, consistent revenue stream.

Clients appreciate the ease of having all their digital needs addressed under one bill, which not only simplifies their financial planning but also solidifies their partnership with your agency.

Designed to ease the decision-making process for potential clients, this model eliminates the intimidation of substantial initial investments. It spreads out the cost over time, making digital services more accessible and budget-friendly.

This approach not only benefits clients by alleviating financial pressure but also ensures a steady income for agencies, allowing them to prioritize service quality over quantity.

While the monthly fee may initially seem modest, especially considering the scope of work for new builds, the model’s scalability—particularly when focused on a specific niche—cannot be overstated. Specializing allows agencies to standardize processes and offerings, making this model both efficient and profitable in the long run.

The agency has the option to establish either a one- or two-year contract with this pricing model.

HMDG, a UK-based agency, scaled from 0 to 800 clients in just three years using this model, focusing specifically on the healthcare niche. To hear their success story in detail, check out their episode on the Vertical Go-to-Market Podcast.

This model is designed to offer comprehensive, all-encompassing monthly packages that handle everything from website design and development to ongoing marketing support and maintenance.

In contrast to the Model above 4 (one simple pricing), this model provides comprehensive services.

It’s an attractive option for agencies aiming to be a one-stop solution for their client’s digital needs, covering every aspect of their online presence on a recurring basis.

This approach, similar to what we implement at UnlimitedWP, (See our white label WordPress packages to get a better idea), streamlines client expenses into a single, predictable monthly payment.

It eliminates the need for multiple service contracts and simplifies the billing process, making it easier for clients to manage their budgets without worrying about unexpected costs.

The flexibility of monthly billing, combined with the absence of overage fees, provides a smooth financial operation for both the agency and its clients.

Your packages can be tailored to match your agency’s strengths and the specific needs of your clientele.

Clients can easily understand the full scope of their investment, from the initial website setup to the continuous efforts in driving traffic and leads through various digital marketing strategies.

As we conclude our exploration of recurring revenue streams for digital agencies, it’s clear that selecting a niche industry to serve is pivotal. Specializing not only helps in building authority but also in systematizing every facet of the business, from operations to lead generation and customer support.

The goal of any recurring revenue model is to establish repeatable processes that ensure steady growth and revenue streams. By catering to niche markets, agencies can refine their offerings and enhance efficiency, ultimately leading to a more predictable and scalable business model.

The decision on which revenue model to adopt is crucial, impacting everything from cash flow to operational stress levels. Each digital agency is unique, and the journey to finding the right model involves understanding your specific needs and market dynamics.

Have you come across any other recurring revenue models that have proven successful for digital agencies? Sharing insights and experiences can enrich this guide, providing valuable perspectives to help other agency owners navigate their growth strategies more effectively.