Draft reference — content review pending
Retainer Revenue Share
The percentage of eligible agency revenue generated by ongoing retainer contracts during the selected period.
Business question
How much of eligible agency revenue comes from ongoing retainer contracts?
Formula
Retainer revenue share = revenue from eligible ongoing retainer contracts ÷ total eligible agency revenue × 100.
Calculation notes
Define an ongoing retainer, revenue recognition policy, eligible agency revenue, currency treatment, and whether pass-through amounts are excluded.
Edge-case guidance
A high share can improve predictability while increasing dependency on a small set of recurring clients. Do not classify a one-time project or unpaid committed work as retainer revenue.
Required data
| Input | Type | Status | Available source hints |
|---|---|---|---|
| Eligible retainer revenueRevenue recognized from eligible ongoing retainer contracts under the agreed accounting policy. | Currency | Required | Accounting software · Excel |
| Total eligible agency revenueAll eligible agency revenue recognized in the same period and currency basis. | Currency | Required | Accounting software · Excel |
Interpretation
Use this measure to understand revenue predictability and dependence on recurring client arrangements. Distinguish retainer revenue from one-time projects and read concentration alongside renewal and margin.
Caution
A higher retainer share is not automatically healthier if it reduces diversification, flexibility, or margin.
Implementation recommendation
Reconcile contract classification and recognized revenue with finance, then review the measure with client concentration, renewal, and margin.
Target guidance
Set a context-specific target from comparable historical revenue mix; balance predictability against dependency and diversification.