
Separate recurring revenue, cash flow and profit
Monthly recurring revenue describes the monthly value of active subscriptions. It does not measure cash in the bank or agency profit. Track setup fees and one-off projects separately. An annual client payment can be converted to a monthly equivalent for comparison, while its actual payment date remains visible in your cash forecast.
Record the number of billed profiles, selling price before tax, discounts, contract dates and associated costs. An unsigned proposal does not belong in contracted recurring revenue. Keep currency consistent when comparing revenue and expenses.
Include the full delivery cost
Software is one part of delivery. Include time spent gathering information, obtaining approvals, handling exceptions, checking publication, reporting and communicating with the client. Measure these activities on your own portfolio rather than assuming a universal number of minutes per profile.
Multiply delivery hours by your estimated hourly production cost, then add third-party purchases and other direct expenses. Sales, management and overhead still need funding. A positive contribution after direct costs is therefore not the agency's net profit.
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Worked example: twenty profiles
Illustrative assumptions, not observed client results: twenty profiles sold at $99 per month generate $1,980 in monthly revenue. Localnord's annual price of $192 per profile represents $3,840 payable for twelve months, equivalent to $320 per month. Check the applicable offer on the pricing page before subscribing.
Suppose measured delivery takes ten hours a month at an assumed hourly cost of $35, with another $100 of direct expenses. The illustrative monthly contribution is $1,980 − $320 − $350 − $100 = $1,210 before overhead, acquisition costs and taxes. Replace every assumption with your own figures; this is not a guaranteed margin.
Test sensitivity to workload and exceptions
If delivery hours double, the example's contribution falls by $350. If two billed profiles leave, revenue falls by $198 while committed costs may remain. This exposes fragile contracts and services that need a clearer scope, different pricing or additional capacity.
Separate routine work from access recovery, suspensions, duplicates and rebranding projects. State how exceptional work will be quoted. Pricing by profile does not mean every location requires the same effort, particularly where client approvals are slow or information is incomplete.
Review the portfolio each month
Reconcile opening and closing recurring revenue with new contracts, expansions and cancellations. Keep the underlying profile list so every change can be explained. Review unpaid invoices and annual renewals separately: a monthly average cannot replace a cash calendar.
Use the monthly agency workflow to define the service behind the price. The one-off project transition guide covers proposing it to existing clients without duplicating this financial model.
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