Is the business becoming more recurring?

MetricShare of revenue under contracted retainers or subscriptions vs project and one-time fees

Unit% of total revenue that is contracted recurring

Stacked area with absolute $ values. Watch recurring layer growing toward majority. Build by tagging revenue per invoice as recurring or one-time. Recurring is what the business is worth on sale. Example: Q1 24 one-time $1.25M + recurring $0.35M = $1.6M; Q4 25 $1.15M + $1.25M = $2.4M.

Digital and marketing agencies, US and UK weighted, 2024-2026; recurring defined as contracted retainers and subscriptions, not repeat project work from the same client · No large-sample survey publishes the actual mix distribution; the bands are triangulated from valuation banding (three independent M&A and accounting sources agree on the 60%+ and sub-30% break points) and adoption surveys (88% of agencies offer both models per Promethean 2025; retainers the primary model for 78% in a 2026 DAN survey). Treat the median as directional.

Category split omitted: Mix splits by agency discipline exist only in single-source vendor surveys; no split is covered by two independent Tier 1-2 datasets.

The recurring band stays a thin stripe at the bottom of the stacked chart while the one-time band saws up and down, and total revenue tracks the one-time band's volatility one for one.

Recurring share stuck at 22% for six straight quarters; one slow project quarter dropped total revenue 28% month over month and forced a hiring freeze despite a full pipeline.

• Attach a maintenance or optimization retainer option to every project quote as a default line item; converting the same profit from 20% to 60%+ recurring roughly doubles exit multiples (Alto worked example, 3x to 7x).
• Re-anchor retainers from vague ongoing support to defined hybrid packages (access plus named deliverables) with a quarterly re-scope, so recurring revenue stays recurring profit instead of decaying under scope creep.
• Point business development at retainer-fit ICPs (always-on channels, monthly reporting needs); retainer clients churn ~18% a year vs ~42% for project clients, so the same win compounds for years longer.
• Standardize contract terms that make recurring credible to a buyer: 3-month minimum, 60-day notice, annual indexation, and a tracked SOW renewal rate with 70%+ as the target.

1. Promethean Research2025 Digital Agency Industry Report · 2025 · North American digital agency panel (2024 data) 95% of agencies offer project work, 91% offer retainers, 88% offer both; retainers are the dominant engagement structure across the industry prometheanresearch.com ↗
2. GigRadar (citing Promethean Research 2025 and Digital Agency Network 2026)Retainer Pricing: The Margin Math Most Agencies Get Wrong · 2026 · aggregation of Promethean 2025 report and a 2026 DAN survey A 2026 survey reported by Digital Agency Network puts retainers as the primary model for 78% of agencies, up from 64% in 2023; retainer pricing bands by client size documented gigradar.io ↗
3. CT AcquisitionsMarketing Agency Business Valuation guide · 2026 · agency M&A buyer diligence data, sample size not disclosed 60%+ recurring retainer revenue moves agencies into the 6-9x EBITDA band; below 30% recurring caps most agencies at 2-4x; SOW renewal at 70%+ is the buyer benchmark for retainer durability ctacquisitions.com ↗
4. Alto AccountingRecurring Revenue: The 60%+ Rule for Your Exit Multiple · 2026 · UK agency accounting practice, chartered accountant verified Worked UK example: the same EBITDA at 20% recurring prices near 3x and at 65% recurring near 7x; the 60%+ threshold is the multiple break point alto-accounting.com ↗
5. FE InternationalHow to Value an Agency Business: Data, Benchmarks and Steps (2026) · 2026 · agency M&A transaction data, 2025 deal flow 2025 deal data: 80% retainer mix cited in a premium-multiple example; strong retainer revenue and digital-first capability command the highest agency multiples feinternational.com ↗
6. Focus DigitalAverage Marketing Agency Churn: 2026 Report · 2026 · agency-conducted analysis, directional; sample size not disclosed Retainer-based relationships churn ~18% annually vs ~42% for project work; retainer clients stay ~56 months vs 24 (agency-conducted study, directional) focus-digital.co ↗
7. Move at PaceHow to Turn Your Agency Into a Recurring Revenue Machine · 2026 · agency advisory practice, UK, sample size not disclosed Most agencies start with retainers covering under 30% of fixed costs; reaching 60% coverage typically takes 6-12 months of focused conversion effort moveatpace.com ↗