Most SEO agencies in the market today use one of two business models: recurring services or one-time project delivery. One-time project delivery may seem a safe and simple choice, but by implementing a recurring income model, you may grow your SEO company and help you build a more promising future.
What Exactly Is Recurring Revenue?
Recurring revenue is nothing but the generated income of an agency that is expected to remain consistent over time. Here, the company may establish dependable revenue streams from hundreds of clients rather than entirely depending on consumer preferences and shifting demand.
Software-as-a-Service (SaaS) providers like Adobe, and streaming services like Netflix or Amazon Prime, are a few examples of well-known recurring revenue services. Customers keep renewing services on a weekly or monthly basis in this model.
In an SEO agency, recurring services comprise content generation, copywriting, social media marketing and many more. In simple terms, recurring revenue is income that is earned continuously and reliably.
Importance Of recurring revenue for your SEO Company
Recurring revenue has several advantages for SEO agencies. Let’s learn about them briefly.
1) Long-term client relationship:
You have the opportunity to develop more enduring relationships with your customers through a recurring service model. In addition, you get the chance to understand their needs. And vice versa, the more time customers spend with your agency service, the more they learn about your business and offerings.
3) Higher Business Value:
Entrepreneurs or investors will be interested in investing in a profitable and sustainable agency. The recurring revenue model is dependable, durable, and consistent for any company. Therefore, it ensures the long-term survival of any company and boosts your company’s worth or value in the market.
4) Scalability:
Scalability is another benefit of recurring revenue. Apart from a steady income stream, if your customers pay a monthly or annual membership, it helps you build a standardized client service. It gives you enough space and duration to expand or modify services based on clients’ needs.
5) Potential cash flow:
For any business, cash flow is a significant component. You need to make more money than the usual spending to maintain a positive cash flow. However, keeping the cash flow becomes challenging if you have unstable or unpredictable revenue sources. Hence, a recurring model is a great technique to become stable with income for your company.
6) Flexibility:
In addition, recurring incomes offer greater flexibility. As an agency, you can spend more time observing customer demands and market trends without hustling to find new clients or projects every month. Furthermore, it also allows you to spend money more wisely and carefully as you know how much cash you are closing each month.
Services You Should optimize for recurring revenue.
As an SEO company, many services can be modified to a recurring revenue model. Let’s know about them in brief:
Content Creation
Content is everything today in digital space. Hence, agencies can offer content creation as a recurring service. You can fix the monthly number of blogs or online posts and charge based on that.
Social Media Management
Social media management is a continuous process that requires content creation, managing profiles, monitoring results etc. And not everyone has the skill and time to do it all together. Hence, it has fantastic potential to be offered as a subscription service.
AdWords Campaigns
A thorough understanding of keyword usage, campaign management and performance monitoring is a prerequisite for marketing services to potential audiences. A single AdWord campaign can last long; therefore, you can execute it as a subscription-based service.
Search Engine Optimization (SEO)
SEO is an excellent subscription service as it takes time to get desired results. Therefore, it can quickly turn into recurring revenue. It comprises keyword research, competitive strategy, technical optimization and many more.
Facebook Ads Management
Most clients don’t have enough knowledge about paid advertising. It is a continuous process of creating and running ads only for maximum ROI. You leverage Facebook advertising or management to services to continuously ensure recurring money.
Consulting Services
Consulting as a recurring service is an excellent idea if you are an expert in fields like technical writing, promotional videos or social media content. You can charge clients in exchange for consultancy services like calls or meetings.
Effective Strategies for Increasing Recurring Revenue
There are four key strategies to boost your recurring revenue:
Improve workflow
Improvement in the workflow and consistency in methods is directly proportional to more efficient operations, profit, and customer satisfaction. Ensure you have in-depth information detailing how each of your internal systems operates. Keep modifying your procedures or strategies to increase recurring revenue.
Partner white label company
When offering SEO services, consider hiring a white-label partner. Here a third-party SEO service provider will offer your clients a wide range of services. It gives you the ability to add your branding to the services and enables you to scale constantly. In addition, you can continue to receive new clients and provide continuous and profitable service to them.
Look for more upsell opportunities
Another way to raise monthly recurring revenue is to keep looking for prospects to upsell your existing customers. As this current clientele are already familiar with your services and are loyal to you, they might agree to pay more for new services. Prepare your teams to look for business expansion opportunities regularly.
Offer flexible packages
Customers have different needs; some might want a high volume of work, while some might want SEO services but be restricted in budget. The answer to all these issues lies in offering multiple flexible packages to change depending on clients’ prerequisites.
Planning To Improve Your Agency’s Recurring Revenue?
So do you want to improve the value of your SEO company? Do you wish to build a long-term relationship with your clients and increase your agency’s revenue? Then the recurring revenue model is the right choice for you.
Conclusion
Hence, there is no doubt that switching to a recurring business model is key if you want to scale your company. It ensures stability and significantly boosts your company’s growth.
