Agency MRR / ARR
Agency MRR / ARR. MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue) are the SaaS-style metrics agencies use to track the predictable, recurring portion of their revenue — separate from one-time project fees. For Vendasta resellers and retainer-based agencies, MRR is the durable line that funds the business.
Definition
Project-based agency revenue is lumpy and hard to forecast. Retainer-based agency revenue (monthly Vendasta resell retainers, SEO retainers, paid-ads management retainers) is predictable, compounds with new clients, and decays with churn. Tracking MRR and ARR — and the client-health signals that predict churn — is the discipline that separates surviving agencies from struggling ones.
How to calculate MRR
Sum the monthly billing for every active retainer. Pro-rate clients on annual prepay (annual contract / 12). Exclude one-time project fees. Exclude refunded or credited charges. ARR = MRR × 12.
Client health signals
Client health is a leading indicator of churn. Signals: engagement with the portal (logged in this month? viewed reports?), invoice payment status (paid on time? past due?), support ticket volume + sentiment, retainer tenure. A weighted score (0–100) makes churn risk visible before the cancellation email lands.
Churn vs. growth math
Net MRR change = new MRR + expansion MRR − contraction MRR − churned MRR. An agency growing new logos faster than it loses retained MRR is healthy; the inverse is the slow-bleed trap that kills agencies that "feel" busy.
See also
- Vendasta reseller — Vendasta reseller
- Per-client margin — Per-client margin
- Client portal — Client portal
Roffik's take
Billing, ACH and card payments, recurring subscriptions, per-client margin tracking, and branded client portals for Vendasta resellers — built on Midnight + cyan. Learn more about HubWho.