Case study: web design agency with recurring support revenue
Profile:
- Revenue: ~$1M annually
- Services: web design, development, maintenance
- Recurring revenue: ~50%
- Client base: diversified, no client over 10%
Key strengths:
- Strong recurring revenue from maintenance and hosting
- Long-term client relationships
- Clear service packages and pricing
- Low client concentration
Key considerations:
- Ensuring smooth transition of client relationships
- Aligning maintenance services with Freshy’s platform
Outcome insight:
This type of agency is often easier to value and transition due to predictable revenue and stable client relationships.
Learn more: Recurring revenue.
Case study: SEO agency with strong retainers but high concentration
Profile:
- Revenue: ~$800K annually
- Services: SEO retainers
- Recurring revenue: ~80%
- Top client: ~35% of revenue
Key strengths:
- High recurring revenue
- Strong margins
- Clear service delivery model
Key considerations:
- Client concentration risk
- Dependence on one major relationship
Outcome insight:
Even with strong recurring revenue, concentration risk affects valuation and deal structure.
Learn more: Client concentration.
Case study: project-heavy agency with repeat clients
Profile:
- Revenue: ~$1.2M annually
- Services: web design and branding projects
- Recurring revenue: ~15%
- Client base: repeat project clients
Key strengths:
- Strong reputation and referral pipeline
- Repeat client relationships
- High-quality portfolio
Key considerations:
- Lower predictability of revenue
- Founder involvement in sales
Outcome insight:
Project agencies can still be valuable, but predictability and transferability become key factors.
Learn more: Valuation factors.
Case study: PPC agency with strong margins and team structure
Profile:
- Revenue: ~$900K annually
- Services: PPC management
- Recurring revenue: ~70%
- Team: established account managers
Key strengths:
- Recurring retainers
- Strong team ownership of accounts
- Reduced founder dependency
Key considerations:
- Platform dependency (ad platforms)
- Performance expectations from clients
Outcome insight:
Agencies with strong team structures and recurring services tend to transition more smoothly.
What these case studies show
No two agencies are the same, but common patterns emerge:
- Recurring revenue increases predictability
- Client concentration introduces risk
- Operational clarity improves transition outcomes
- Founder dependency impacts valuation and structure
These factors all connect to how agencies are evaluated and priced.
Explore more: How we value agencies.
How Freshy approaches each situation
Freshy evaluates each agency individually.
We do not apply a single formula or rigid criteria. Instead, we look at how the business actually operates and how it can succeed after the transition.
That includes understanding both strengths and risks, and structuring deals accordingly.
Want to understand how your agency compares?
If you are considering selling, we can help you understand how your agency may be evaluated based on real-world factors.
Request a confidential review
Frequently asked questions
Are these real case studies?
They are based on real-world scenarios but simplified and anonymized.
Do all agencies follow the same path?
No. Each agency is evaluated and structured differently based on its characteristics.
What matters most in these examples?
Recurring revenue, client relationships, operational clarity, and transferability.
Can my agency still sell if it looks different?
Yes. These examples are illustrative, not restrictive.
How can I know where my agency fits?
The best way is to have a conversation and review your specific business.
