How Recurring Revenue and Systems Can Save Your Agency

AgencyCoach with Nicholas Kuhne

I sat down with not one but two experts in the digital agency world – AJ Rivera and Mike Schmidt, the brains behind Agency Coach. With decades of real-world experience, including building a multimillion-dollar agency, AJ and Mike now dedicate their time to mentoring digital agency owners. Their goal? Helping agencies transition from feast-and-famine cycles to thriving businesses built on recurring revenue and robust systems.

From humble beginnings in Tucson, Arizona, to coaching thousands of agency owners globally, AJ and Mike share their philosophy: focus on sustainable growth, avoid chasing the next big project, and build systems that allow you to work on your business—not in it.

Key Takeaways

AJ and Mike’s journey isn’t just a success story; it’s a blueprint for agency owners seeking stability, profitability, and freedom. They reveal how their shift from chasing one-off “big ticket” projects to prioritising recurring monthly revenue changed everything—from financial freedom to being able to say “no” to bad-fit clients.

Their key message? Consistent cash flow equals freedom—freedom to sleep at night, freedom to focus on strategic growth, and freedom to avoid those nightmare clients we all secretly dread.

They also drop some gold on building lean teams, leveraging outsourced specialists, and standardising services for maximum efficiency (bye-bye, snowflake projects!). Plus, Mike’s passion for personal branding and AJ’s cheeky insights keep the conversation lively and packed with real talk.

The details - basically the good stuff

Building an Agency the Hard Way

Mike shares how his agency started in the early 2000s—before smartphones, Facebook, or even YouTube—and how necessity pushed him to start his business in Tucson. AJ came on board in 2008, bringing innovative sales techniques and a mindset of abundance, helping grow their agency to a 20-person team with over 2,000 websites under their belt.

The Big Shift: Recurring Revenue Over One-Offs

AJ and Mike hit their breaking point after a six-figure project left them cash-strapped just months later. Their accountant’s report changed everything—highlighting that recurring clients, like a local orthodontist, were far more valuable long-term than flashy one-off projects. This realisation led to a shift: build predictable income, not just chase the next “whale.”

Leads Aren’t Everything – Nurture and Retain

Agency owners often focus solely on leads, but AJ stresses the value of nurturing existing clients and generating more wallet share. Many clients forget what services you offer. Staying top of mind and offering additional services boosts revenue without costly new client acquisition.

Systemise and Simplify

Mike and AJ discovered that systemising services and using specialised freelancers allowed them to cut costs, increase profits, and reduce stress. Rather than hiring full-time staff for every skill, they built a “leveraged service model” using outsourced partners who only get paid when the agency does.

Pricing, Process, and Saying No

Recurring revenue lets you say no to nightmare clients and avoid the feast-or-famine trap. By simplifying offerings and having clear processes, they can price effectively, manage costs, and deliver consistent results—without burning out or losing money to snowflake projects.

Personal Branding Power

Mike highlights the power of personal branding in today’s landscape where people trust individuals over faceless brands. He shares his own balance between being visible online and protecting his mental bandwidth, while AJ—though more low-key—proves that authenticity in business always wins.

Conclusion

AJ and Mike don’t just preach agency success—they’ve lived it. Their journey from stress and burnout to predictable, profitable growth is a masterclass in building a sustainable business. Their approach—recurring revenue, systemised services, and saying no to bad clients—gives digital agency owners a roadmap to not just survive, but thrive.

What Next?

Want to ditch the feast-or-famine cycle and build a stress-free, profitable agency? Connect with AJ and Mike at Agency Coach and get expert mentorship tailored to your business journey.

👉 Visit AgencyCoach.com👉 Follow Mike and AJ:

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How Recurring Revenue and Systems Can Save Your Agency – Lessons from AgencyCoach