Two agencies can bill the same amount in a year and have completely different futures. The difference is the mix between one-time project revenue and recurring monthly revenue (MRR).
Why project revenue is a trap
Project work is lumpy. A great month is followed by a scramble to refill the pipeline. You are only ever as stable as your next signed proposal, and you cannot forecast or invest with confidence.
Why MRR compounds
Recurring revenue — retainers, managed services, resold subscriptions — stacks. Each new client adds to a base that does not reset each month. A year of steady adds builds a foundation that funds the business and survives a slow quarter.
Watch client health, not just MRR
MRR is a lagging number; client health is the leading one. Portal engagement, on-time payment, and support sentiment predict churn before the cancellation email arrives. Surface them together so you can act early.
The math that matters
Net MRR change = new + expansion − contraction − churn. An agency adding logos faster than it loses retained revenue is healthy; the inverse is the slow bleed that kills agencies that “feel” busy. HubWho surfaces MRR, ARR, and client health automatically for agencies.