Recurring Revenue Metrics Every Agency Should Track
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Top Resource: GoHighLevel (Agency Plan)
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What Gets Measured, Gets Managed
If you are running a recurring revenue agency but only looking at the total revenue in your bank account, you are flying blind. To build a valuable asset, you must track these 5 core metrics.
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The Red Flags
Churn > 10%
Critical issue with client delivery or onboarding.
LTV:CAC < 3
You are spending too much to acquire low-value clients.
The 5 Core Metrics
1. MRR (Monthly Recurring Revenue)
The Metric: The sum of all active monthly subscriptions. This is the heartbeat of your agency.
Target: 10% month-over-month growth.2. Churn Rate
The Metric: The percentage of revenue lost each month due to cancellations.
Target: Under 3% for high-performance agencies.3. LTV (Lifetime Value)
The Metric: The average total revenue you expect to earn from a client before they churn.
Formula: Average Monthly Fee / Churn Rate.4. CAC (Customer Acquisition Cost)
The Metric: The total cost of sales and marketing divided by the number of new clients acquired.
Target: Payback in under 6 months.5. NRR (Net Revenue Retention)
The Metric: Your ability to grow revenue from existing clients through upsells and expansions.
Target: Over 100% (Meaning upgrades exceed churn).---
Benchmarks for Success
| Metric | Good | Excellent |
| Monthly Churn | < 5% | < 2% |
| LTV:CAC Ratio | 3:1 | 5:1+ |
| CAC Payback | < 12 Months | < 6 Months |
| MRR Growth | 5% / mo | 10%+ / mo |
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Frequently Asked Questions
How do I track these in GoHighLevel?
GHL has built-in reporting for MRR and Churn if you use their native invoicing. For advanced metrics like LTV:CAC, we recommend connecting your GHL data to a dashboard like Google Data Studio.
What is the most important metric for valuation?
Churn and NRR. A buyer will pay a massive premium for a 'sticky' business with low churn and high expansion revenue.
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Ready to manage your numbers?
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Want to see how to improve these numbers? Read our Automation Guide or the 90-Day Plan.