It can be so frustrating as a freelancer or online business owner to have unpredictable income.
You go from being fully booked to scrambling for work, and that is exactly why having recurring revenue every month is key to a sustainable business.
But when you’re a project-based business, having client sticking around may not be as straightforward as you’d like. But don’t worry, there is a great way to offer ongoing services as a web developer.
But first, let’s understand what recurring revenue is and why you should think about this from the start.
Recurring revenue is exactly what it sounds like. It's income that comes in consistently.
Feast or Famine… you may have heard this term before, and when you go into business for yourself you don’t want to get into this situation.
It’s the cycle of business. There are months when clients just come flying in and you work non-stop. And other months are, well, crickets…
This is why it's so important to keep money coming in on a monthly basis by signing clients on a monthly retainer. Even if your projects slow down, you have this consistent stream of income that’ll pay the bills and keep your business running.
There are some different ways and different services you can offer to make this happen.
Without a doubt, the easiest service you can add to your web design business is a monthly maintenance plan.
If you're a web developer or designer, you already know that websites require ongoing maintenance. Especially WordPress sites.
WordPress websites require plugin updates, theme updates, PHP updates and WordPress core updates.
Not only that, most websites, not just WordPress websites, require security scans, site optimization and content updates.
As you probably already know, you can't just build a website and then forget about it.
This is exactly where a monthly maintenance plan will come, swooping in, to the rescue so you can have recurring revenue. For every single website that you build, you absolutely want to be offering monthly maintenance.
There's a very high probability that the person who outsourced their website build would also want to outsource the maintenance and management of that website.
Business owners don't usually have a lot of time to spare, and they definitely don't want to spend precious hours of their day, week, or month troubleshooting website issues.
And the best part about creating monthly maintenance plans is they're an easy sell.
This is the best market you can sell to - current or past clients, aka the people who already know you and know your work.
Now, I know that’s probably your next question. And it all depends on what you offer.
What you include in your monthly plan is totally up to you, but a standard one would usually include:
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Another approach a lot of web design business have taken lately is shifting to a recurring revenue model.
It transforms web design services from one-time projects to a subscription, where clients get their website upfront, but make monthly payments for a certain amount of time.
So instead of charging a large upfront fee for website builds, offer clients a monthly retainer that includes the initial design, development, and ongoing maintenance. This model can make high-quality web design services more accessible to clients by spreading out the cost over time.
There are a few things you need to consider if transitioning to this model:
By transitioning to a recurring revenue model, web developers and agencies can ensure a more predictable and sustainable business for themselves, and a more affordable and valuable offer for their clients.
And if you really want to take it to the next level and direct your business more towards a digital or web design agency, you could package it all together with some other services.
Expanding your service offerings is a strategic way to increase recurring revenue and provide more value to your clients.
Businesses don't usually just need a website. They need other marketing services.
By integrating services such as SEO and content marketing, social media management, email marketing, and affiliate programs, you can create a comprehensive support system for your clients.
Offering a variety of additional services ensures that your clients see you as a one-stop solution for their digital needs, fostering long-term partnerships and financial stability.
So let's talk about some options.
Providing SEO and content creation services helps improve your clients' online presence and can be bundled with maintenance plans.
Regular blog posts, keyword optimization, blog post updates, and high-quality content improve search engine rankings and drive organic traffic. Bundle these services with your maintenance plans for added value.
Managing your clients' social media accounts can be a steady income source.
This includes creating and scheduling posts, engaging with followers, and running ad campaigns to boost their online visibility and customer engagement.
Help clients reach their audience through email campaigns, increasing their engagement and sales.
Crafting engaging newsletters, promotional emails, and automated campaigns can increase client engagement and drive sales. Offer these services to maintain regular communication with their customer base.
Though I say passive income, I'm a strong believer that nothing you create is truly passive. Everything takes work in some sort of shape and form. So with this disclaimer, the items I'm talking about below have a number of benefits:
Recommending reliable service providers through an affiliate program can create a passive income stream.
And there are two ways you can do this.
You can either work on building an audience who trusts you, or you can earn commissions by referring clients to services like web hosting, software tools, and other relevant products, adding another layer of revenue.
Share your expertise by creating comprehensive online courses that teach web design, SEO, content marketing, or any other relevant skills you have.
These courses can be sold individually or as part of a subscription model, providing consistent income.
Create a resource library subscription that offers valuable materials such as templates, design assets, tutorials, and exclusive content.
This provides ongoing value to your clients and encourages long-term subscriptions.
Or if a subscription model is not sustainable for you, you can also make this work as a one-time payment product.
This post has a lot of different ideas to boost your recurring revenue as a web developer or agency.
I don't want all of these options to be overwhelming, so it's important to remember that you don't need to implement everything at once.
Start by picking one service that aligns with your current skills and client needs. As you become more comfortable and your business grows, you can gradually incorporate additional services and even start hiring and outsourcing.
The key is to take steady steps toward building a stable and profitable business model that ensures long-term success and financial stability.
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