Service plans: the recurring revenue buyers pay more for
Most home service revenue starts at zero every month. You finish the jobs, and the next month you go find more. A service plan changes that math.
What a service plan is
A customer pays you every month or every year for regular visits: a crawl space check, a sump pump test, a dehumidifier service, an HVAC tune up, a roof inspection after storm season. You show up on a schedule. They get peace of mind and first call when something goes wrong.
You get revenue that shows up whether the phone rings or not.
Why it's worth more than it looks
It steadies the slow season. Plan revenue and plan visits keep your crew busy and your cash flowing when new jobs slow down.
It keeps you in the house. Every visit is a chance to spot the next problem before it gets expensive, and you're the company they already trust to fix it.
It raises what a customer is worth. A plan customer pays you for years, not once. That lifts your lifetime value without spending another dollar to find them.
It makes the business worth more. Buyers pay more for revenue they can predict.
What buyers look for
CT Acquisitions' 2026 report on home services sales benchmarks how much of an HVAC company's revenue comes from service agreements. Under 10% sits in the discount zone. 15 to 30% is market. 40% and up is the premium zone.
The same report shows how far it can go. Pest control companies with 80% or more recurring revenue and strong retention routinely reach 6 to 8 times EBITDA in competitive sales. Below 50% recurring, they trade at 3.3 to 4.5 times.
Your trade won't look exactly like pest control. But the direction is the same everywhere: predictable revenue is worth more.
How to start
- Offer the plan on every job. Not just the big ones. Make it the last thing your tech says before leaving.
- Make it simple. One or two tiers, a clear price, and a list of exactly what's included.
- Schedule the visits before they leave. A plan nobody remembers to use gets cancelled.
- Track it monthly. Count new plans, cancelled plans and plan revenue as a share of total revenue.
Start where you are
If plans are under 10% of your revenue today, that's not a failure. It's the easiest money on the table. Every customer you already served is a plan you haven't offered yet.
Here's what a customer is actually worth once you count the plan. The full scale up checklist is in our free playbook.
Not sure where your business stands yet? Our free Growth Ladder assessment takes about four minutes.
- The 2026 Home Services M&A Multiples Report (CT Acquisitions)
- Run It Like They Would, The Next Right Move (2026)
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