If you find yourself constantly searching for new clients to maintain a steady income, it’s time to consider recurring services.
Unlike one-off projects that require continuous outreach, recurring services provide a predictable revenue stream that allows you to focus on delivering long-term value.
With this model, clients pay you on a regular basis, whether monthly, quarterly, or annually for ongoing services such as website maintenance, content management, or consulting.
In this article, we’ll get into what recurring services are, what the benefit of having one is, how you can create a recurring service, and real-life examples.
Let’s get started.
Key Takeaways
- Recurring services are provided on a regular, repeating basis. They often have a set schedule (e.g., monthly, quarterly, or annually).
- When pitching to clients, highlight how these services save them time, reduce hassle, and provide ongoing value.
- Offer discounts for yearly recurring services to encourage long-term commitments and build strong client relationships.
What are Recurring Services?
Recurring services are offered on a recurring basis and often billed on a set schedule (e.g., weekly, monthly, quarterly, annually). It can include specific services, ongoing support, SaaS, etc. The clients pay for the services at regular intervals.
Key Metrics for Recurring Services
- Churn Rate: This shows how many clients cancel their recurring service. A high churn rate means you’re losing clients quickly.
- Client Lifetime Value (CLV): This tells you how much revenue you can expect from a client throughout their time with your service.
- Monthly Recurring Revenue (MRR): MRR tracks the steady income you make each month from recurring services.
- Average Revenue Per User (ARPU): This shows how much each client brings in on average which helps you assess pricing and value.
- Client Acquisition Cost (CAC): This tells you how much it costs to acquire each new client. You want this cost to be lower than your client’s lifetime value.
- Net Revenue Retention (NRR): NRR measures how much revenue you keep from existing clients, considering upgrades, downgrades, and churn.
- Activation Rate: This tracks how many users fully engage with your recurring service after signing up. A higher activation rate often leads to more conversions.
Benefits of Recurring Services
Recurring services provide a steady cash flow, stronger client relationships, and long-term growth. Here’s why making the switch can set your agency up for success.
Consistent Cash Flow
With recurring payment services, you know exactly what’s coming in each month, which makes it easier to plan and scale.
Room for Growth
Predictable revenue gives you the confidence to expand your services, hire the right people, and take on bigger projects without the fear of cash flow dips.
Stronger Client Relationships
The longer clients stay with you, the more trust you build. Meeting their ongoing needs leads to higher retention and better referrals.
More Upselling Opportunities
Selling to existing clients is always easier than acquiring new ones. When they trust you, they will invest in additional services.
Increased Business Value
A steady revenue stream makes your agency more attractive to investors and buyers. Predictable income signals long-term stability and success.
How to Create a Recurring Service
A recurring service is one of the best ways to build a steady income. Instead of constantly looking for new clients, you create something that keeps people coming back month after month.
But how do you make it work? Let’s go step by step.
1. Choose the Right Service
Not every service fits a subscription model. The key is to offer something people need regularly, like website maintenance, content creation, coaching, or software updates.
If your service solves an ongoing problem, people will pay for it on repeat.
2. Keep Pricing Simple
Clients should understand your pricing in seconds. Offer clear, straightforward plans. A basic tier for budget-conscious buyers, a mid-tier for most, and a premium option for those who need extra value. Don’t overwhelm them with too many choices.
3. Make Payments Hassle-Free
No one wants to deal with complicated billing. Use payment gateways like Stripe or PayPal to automate payments. This way, clients get charged without having to think about it, and you don’t have to chase invoices.
4. Deliver Value Every Month
If people don’t see the benefit, they’ll cancel. Send reports, updates, or personalized messages to remind them why they signed up in the first place.
Show them progress, improvements, or exclusive perks that make your service worth it.
5. Allow Easy Cancellation
It might sound counterintuitive, but making it easy to cancel builds trust. If people feel locked in, they’ll hesitate to subscribe. But when they know they can leave anytime, they want to stay.
How to Modify a Recurring Service
Recurring services are convenient, but sometimes, you need to make changes. Maybe you want to adjust the frequency, update your payment method, or cancel altogether. Whatever the reason, modifying a recurring service should be simple.
1. Check the Provider’s Policy
Before making changes, visit the provider’s website or app. Some services let you modify settings with a few clicks, while others require you to contact support.
2. Log Into Your Account
Most recurring services have an account dashboard where you can manage subscriptions. Look for options like “Billing,” “Subscription,” or “Manage Plan” to find modification settings.
3. Change Payment or Billing Cycle
If you need to update your payment details or switch from monthly to yearly billing, you can usually do this under the billing section. Some services may require re-verification for security reasons.
4. Adjust Service Frequency
Many recurring services offer flexibility. If you’re using a streaming service, you might downgrade to a cheaper plan. If it’s a software subscription, you could change from basic to premium or vice versa.
5. Cancel or Pause If Needed
If you want to cancel, check if there’s an option to pause instead. Some services let you pause for a few months rather than losing your settings and history completely.
6 Profitable Recurring Services You Can Offer
Want to build a business that makes money month after month? Recurring services are the way to go. They bring steady income, keep clients coming back, and make scaling easier.
Here are six profitable recurring services you can start today.
1. Subscription-Based Content Services
People love valuable content. Whether it’s premium newsletters, industry insights, or exclusive training, businesses and individuals are willing to pay for ongoing access. Platforms like Substack and Patreon make it easy to get started.
2. Website Maintenance & Hosting
Every business needs a website, but most owners don’t have time to manage updates, security, and backups. That’s where you come in. Offer website maintenance as a monthly service, bundling it with hosting for extra value.
3. Social Media Management
Brands need fresh content and engagement, but staying active on social media takes time. A monthly service that handles posting, responding to comments, and running ads can be a goldmine, especially for small businesses.
4. Software as a Service (SaaS)
If you have a tech background, SaaS is one of the most scalable recurring services.
Whether it’s a simple tool or a full-fledged platform, people love paying for software that solves a problem. Just make sure your pricing model keeps clients subscribed.
5. Virtual Assistance
Many entrepreneurs and small businesses need ongoing admin support, including email management, scheduling, client billing, and more. A subscription-based virtual assistant service can provide a steady stream of income.
6. Managed IT & Cybersecurity
Tech issues and security threats are constant trouble for businesses. Offering IT support and cybersecurity as a recurring service keeps clients protected while giving you predictable revenue.
Real-Life Case Studies: Successful Implementation of Recurring Services
Case Study 1: HubSpot – Freemium Models for Client Acquisition
HubSpot has successfully implemented a freemium model to attract new users. Their strategy includes:
- Offering a free version of their software with essential features.
- Encouraging users to upgrade to paid plans (Starter, Professional, or Enterprise) as their business needs grow.
This approach allows HubSpot to build trust with clients by providing immediate value at no cost. Over time, as businesses expand or require advanced functionality, they are more likely to convert into paying subscribers.
Key Takeaway: Freemium models can be an effective way to lower the barrier to entry for new clients while fostering long-term relationships.
Case Study 2: Slack – Driving Growth Through Usage-Based Pricing
Slack, the popular workplace communication tool, uses a hybrid pricing model that combines fixed subscriptions with usage-based billing. For example:
- Teams pay a flat monthly fee per active user.
- Slack also offers prorated billing, where clients only pay for the time they actively use the service.
This flexible approach ensures that businesses only pay for what they need while scaling costs as their teams grow.
Slack’s focus on seamless integration with other tools and excellent user experience has helped it maintain high retention rates.
Key Takeaway: Usage-based pricing models can align costs with client value that makes them an attractive option for businesses of all sizes.
Case Study 3: Adobe Creative Cloud – Transitioning from One-Time Purchases to Subscriptions
Adobe successfully transitioned from selling one-time software licenses to offering Creative Cloud as a subscription service. This shift allowed them to:
- Generate predictable recurring revenue instead of relying on sporadic sales.
- Continuously update their software without requiring clients to purchase new versions.
- Offer bundled subscriptions (e.g., Photoshop + Illustrator) to increase perceived value.
The move not only stabilized Adobe’s revenue stream but also improved client satisfaction by providing ongoing access to the latest tools and features.
Key Takeaway: Transitioning from one-time purchases to recurring subscriptions can create sustainable growth while delivering continuous value to clients.
Wrapping Up
Any agency looking to grow should consider selling recurring services. It not only helps you scale a successful business but also cuts down manual work for everyone involved.
Don’t hesitate to try different recurring service packages. Test your pricing strategy and find ways to bring back old and new clients with better subscription offers.
Once you start offering services on a recurring basis, track your monthly revenue. You’ll soon see that it’s easier to predict income, plan ahead, and make better business decisions.
FAQs about Recurring Services
1. Do recurring services help save time and reduce stress?
Yes, recurring services take the guesswork out of regular tasks and ensure they are handled automatically on a set schedule. This means you don’t have to worry about remembering when the next service is due, saving you time and mental energy.
2. Can recurring services help prevent unexpected problems?
Yes, by setting up regular maintenance or checkups, recurring services allow potential issues to be addressed early. It’s a proactive approach to keeping everything in good working order.
3. Are recurring services more cost-effective than paying for services one at a time?
Yes, recurring services often offer discounts and lower rates for long-term commitments. Plus, they prevent the need for urgent repairs, which can be more expensive when done on short notice.
4. Is it easy to set up recurring services for my needs?
Yes, most service providers offer simple setup processes that allow you to choose the frequency and type of service that best suits your needs. It’s designed to be a hassle-free way to maintain consistency.
5. Can recurring services be customized to fit my schedule?
Yes, many service providers allow you to adjust your recurring services to match your availability to ensure that it fits seamlessly into your life without disrupting your routine.
