What numeric example does the speaker give for monthly recurring revenue?

Eric DeeranOne mission — help agency owners build businesses they actually love running.

Why retainers and not one-offs?

24 Aug 2023 · 1 min

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A short YouTube clip (by Eric Deeran) advising that businesses should prefer charging retainers over one-off project fees because retainers create predictable, recurring monthly revenue. The speaker gives a numeric example: three clients at $3,000/month each for six months yields a guaranteed $9,000/month during that period, with one-off work serving only as upside.

Questions this video answers

Three clients at $3,000/month each for six months, yielding a guaranteed $9,000/month during that period.

Chapters

So this is a really good question. Why charge retainers and not one off pricing? It's a good question. The reason we want to charge retainers is because as you're getting leads coming in, if you can build up reoccurring revenue or MRR in your business, then what happens is is every single month you have predictable income or a business salary that you're getting paid. Let's say you close 3 clients at 3k a month each for 6 months. Then for 6 months you have a guaranteed $9000 coming in, as opposed to just waiting one off projects where the monthly revenue goes up and down, up and down. That's why I prefer retainers over one off pricing. Now, it doesn't mean that you can't do one offs. It just means that if you have 9K guaranteed coming in, anything you close on one offs are just additions to that. So hopefully that makes sense.