Recurring revenue design is the work of turning customers who buy once into customers who are contracted, or very likely, to buy again. Revenue that renews before the year starts is generally treated as more dependable than revenue that has to be won from scratch, and dependable revenue is one of the clearest value drivers an owner can build.
The work is part commercial design and part operations. A well-priced plan that is badly delivered, or never renewed, is worse than no plan, because it trains customers to cancel.
Types of recurring revenue we work with
Not every model fits every company. We look for the form that suits how your customers already buy.
| Model | Typical fit | What makes it valuable |
|---|---|---|
| Service or maintenance agreement | Equipment, facilities, home services | Scheduled visits create demand you can staff for |
| Membership plan | Consumer services with repeat needs | Priority service or pricing in exchange for an annual fee |
| Support retainer | Professional and technical services | A fixed monthly fee for defined availability |
| Multi-year contract | Commercial and institutional clients | Revenue visibility for several years |
| Consumables or replenishment | Product businesses | Repeat orders on a predictable cycle |
What we learned from home services
Much of Sedighi.ca's operating experience comes from HVAC companies, where maintenance agreements are a familiar route to repeat revenue. The lesson that transfers to other industries is that the agreement is only as valuable as the renewal process behind it: reminders, scheduled visits, a clear record of what was done, and a renewal offer made before the term ends, not after.
What is included
- A review of your current repeat customers, existing agreements and renewal rates
- Design of one or two recurring offers: scope, service levels, price and term
- Pricing analysis so that the plan is profitable after delivery costs, not just popular
- Renewal and cancellation process design, including who contacts the customer and when
- Launch support for your sales and service teams, with scripts and a tracking sheet
- Monthly tracking of plan count, renewals, cancellations and revenue per plan
Who it is for
Owners whose revenue largely resets each year; owners with an agreement programme that exists on paper but is poorly renewed; and owners building a value-creation plan where revenue durability is one of the weakest scores.
Timeline
- Weeks 1–3: review of customer history and existing agreements.
- Weeks 3–6: offer design and pricing, with legal review of terms by your lawyer.
- Weeks 6–10: pilot launch with a defined customer group.
- Months 3–12: roll-out, renewal tracking and adjustments.
- Years 2–3: renewal history builds, which is where the value becomes visible.
How results are measured
Four numbers, tracked monthly: active plans, renewal rate at term end, cancellations within term, and recurring revenue as a share of total revenue. We also track the gross margin on plan delivery, because a plan that loses money on every visit is not an asset. Our recurring revenue guide shows how to set these up.
Mistakes to avoid
- Pricing on what competitors charge. Price on your delivery cost and the value to the customer. Competitors may be losing money on theirs.
- Selling plans you cannot deliver. Missed visits are the fastest route to cancellations.
- No renewal owner. If nobody is responsible for renewals, they happen by accident.
- Loose terms. Agreements that are vague about scope, price changes or cancellation create disputes and are hard for a new owner to rely on. Have your lawyer review them.
- Counting sign-ups instead of renewals. The first year proves demand. The second and third years prove durability.
Price and how to start
Design and launch is usually a fixed project; roll-out support usually runs on a retainer. See the ranges on our pricing page, in Canadian dollars plus GST/HST based on your province (GST and QST in Quebec). To start, call or text (604) 632-4959 with a line about how customers buy from you today. Recurring revenue work often follows margin and EBITDA improvement, because plan pricing depends on knowing your true costs.
Frequently asked questions
My industry is project-based. Can recurring revenue still work?
Often, yes. Maintenance, inspection, support, warranty extensions, retainers and priority-service plans can sit alongside project work. Even a modest share of renewing revenue steadies cash flow and makes the business easier to plan.
What share of revenue should be recurring?
There is no universal target. What matters is that the share is rising, that renewals are tracked, and that the agreements are written well enough to survive a change of owner.
Do recurring plans need legal review?
The terms should be reviewed by your lawyer, particularly auto-renewal, cancellation and price-change clauses, because consumer protection rules differ by province. We design the commercial side; your lawyer confirms the wording.
How long before recurring revenue shows up in value?
The revenue shows up within months. The value shows up when you can show two or three years of renewal history, because that is what proves the revenue really does repeat.