Recurring revenue
Recurring revenue is income from customers who have agreed to repeat work, such as service plan visits, rather than from one-off jobs won one at a time.
Also called
- repeat revenue
- plan revenue
- contracted revenue
Recurring revenue makes a home service company easier to plan: you can see in winter how much spring work is already sold. It also costs less to earn, because there is no ad, quote visit or follow-up for each repeat visit.
Track it as the yearly value of active plans, and watch how many plans renew. A plan book that grows but loses many customers each year is not as strong as it looks.
Formula
yearly recurring revenue = active plans × visits per year × average visit price renewal rate = plans renewed ÷ plans that came up for renewal
Example
Invented: 150 plans × 2 visits × $360 = $108,000 a year of booked work.
Track it in Birdy
Leads, quotes, jobs and invoices on one customer record, set up with your own data.
Related
- FeatureService plansRecurring plans where every visit has its own services, signed by the customer.Read
- FeatureReports and speed to leadSpeed to lead, close rate, money, what's owed and how the crews did, with every number clickable.Read
- Free toolService plan revenue calculatorWork out what your maintenance plans bring in each year, and what they grow to with churn.Read
- GuideSelling service plansHow home service companies build, price and sell service agreements and maintenance plans: what to include, visit rotations, discounts, renewals and the math.Read
- GlossaryService planA service plan is a signed agreement for repeat visits on a schedule, at agreed prices, such as a house wash every spring and fall.Read
- GlossaryRe-service intervalA re-service interval is how long after a job the same service is usually due again, such as a house wash yearly or windows every six months.Read
- GlossaryRevenue per truck dayRevenue per truck day is completed job revenue divided by truck days, where one truck day is one crew working one day.Read