How to Create a Recurring Revenue Machine for Your Digital Agency

<p>Kevin Daisey works hard to stay on top of changing trends in digital marketing. He is the founder & CMO of <a href= "https://arraylaw.com/" target="_blank" rel="noopener">Array Digital</a>, a digital marketing agency specializing in search engine optimization, social media, and digital advertising; and also <a href="https://rivaldigital.com/" target="_blank" rel= "noopener">Rival Digital</a>, a digital agency niched in the HVAC market. Today he joins us to chat about how to create a recurring revenue machine. And also how establishing tight processes will not make you lose clients if they’re the right clients, and how his agency benefitted from eliminating the least profitable services.</p> <h2><span style="font-weight: bold;">3 Golden Nuggets</span></h2> <ol> <li><span style="font-weight: bold;">Becoming a recurring revenue machine.</span> After his accountant asked what he was predicting for next month's revenue and he had no answer, Kevin realized they needed to get serious about the business. So, he and his partner decided to implement 12-month payment plans and started converting clients to that plan. Clients pay for 12 months, even if the project was done in four months, and they <a href= "https://jasonswenk.com/licensing-model/" target="_blank" rel= "noopener">can forecast on collecting that revenue</a>.</li> <li><span style="font-weight: bold;">Figure out which services are bringing in more clients.</span> Investigating all the services that they offered and identifying which ones were recurring and which ones were not, helped our guest <a href= "https://jasonswenk.com/focus/" target="_blank" rel="noopener">make some changes</a> in his agency. A lot of agencies try to do too much and think that to double in size, they need to do double the amount of services. And that's actually very incorrect. In the end, they figured out which services they could eliminate and which ones they should go all in. That helped them grow their recurring revenue in just eight months.</li> <li><span style="font-weight: bold;