Revenue Models for Solo Developer Agencies

I’ve run my solo development agency for three years. I’ve tried project-based pricing, monthly retainers, productized subscriptions, and hybrid models. Some worked well. Others taught expensive lessons.

This article shares what I’ve learned about how solo developer agencies actually make money, with real numbers, honest assessments, and the trade-offs nobody mentions in marketing materials.

The Solo Agency Economics

First, understand the fundamental constraint: time.

As a solo developer, you have roughly 25-30 billable hours per week. The rest goes to admin, sales, learning, and life.

At 30 hours weekly, 48 weeks yearly, that’s 1,440 billable hours annually.

If you charge £75/hour: £108,000 annual revenue

If you charge £100/hour: £144,000 annual revenue

If you charge £150/hour: £216,000 annual revenue

These are revenue numbers, not profit. Subtract 20-30% for taxes, tools, hosting, insurance, marketing, etc.

This sets the ceiling for hourly-based work. To exceed these numbers, you need different models.

Model 1: Project-Based Pricing

This is where most developers start. Client needs a website, you quote a price, you build it, you get paid.

How It Works

You estimate project scope, add some buffer, quote a fixed price. Client pays deposit (typically 50%), you build, they pay remainder on completion.

Typical project values:

• Basic service site: £2,000-3,500
• Standard business site: £3,500-6,000
• Complex site with custom features: £6,000-12,000+

Example revenue model:

Complete one £4,000 project monthly = £48,000 annually Complete two £3,000 projects monthly = £72,000 annually Complete one £6,000 project monthly = £72,000 annually

These numbers look good until you account for reality.

The Reality of Project Work

Revenue is lumpy. Some months you land three projects. Other months, zero. Averaging “one project monthly” means some months are feast, others famine.

Sales time isn’t billable. Finding clients, writing proposals, discovery calls—this takes 10-15 hours per signed project. That reduces effective hourly rate significantly.

Scope creep happens. Despite clear contracts, projects expand. “Just one more page” or “small tweak to the contact form” eat into margins.

Clients disappear. You’re ready to build, waiting for client to provide content or feedback. Weeks pass. Meanwhile, you can’t fully commit to other projects.

Payment delays. Even good clients pay late sometimes. Cash flow becomes stressful.

No residual income. Once the project ends, revenue stops. You’re constantly hunting the next client.

This is why I now offer both project-based work (business websites) and ongoing support (growth service) to balance revenue streams.

What Works Well

Project-based pricing suits:

• Developers who enjoy variety
• Those with strong sales pipelines
• People who can handle income volatility
• Developers building reputation and portfolio

My experience: Project work was good for years 1-2. I built portfolio, learned client management, and established processes. But income volatility was stressful, and I was perpetually selling.

Model 2: Monthly Retainers

Instead of discrete projects, clients pay monthly for ongoing availability and work.

How It Works

Client pays £500-2,000/month. In return, you provide:

• Ongoing maintenance and updates
• Content changes and additions
• Technical support
• Performance monitoring
• Security updates
• Small feature additions

Work is spread across the month. Client gets reliable support; you get predictable income.

The Numbers

Example retainer portfolio:

• 5 clients at £800/month = £4,000/month
• 8 clients at £500/month = £4,000/month
• 3 clients at £1,500/month = £4,500/month

With 10-12 retainer clients, you can generate £5,000-8,000 monthly recurring revenue.

Time investment: Retainer clients typically use 2-8 hours monthly. Some months more, some less. It averages out.

The Benefits

Predictable income. You know within 10% what you’ll earn each month. This enables planning and reduces stress.

Ongoing relationships. You deeply understand client businesses. Work is more satisfying than constant new projects.

Upsell opportunities. Retainer clients frequently need larger projects (redesigns, new features). You’re the obvious choice.

Reduced sales effort. Instead of finding 12 new clients yearly, you maintain 10 existing ones and add 2-3 new ones.

Flexible workload. Some weeks are light; you can take on project work. Other weeks are busy with retainer requests. It balances.

The Challenges

Scope management. Clients test boundaries. “Can you also…” becomes frequent. Clear contracts about what’s included are essential.

Uneven work distribution. Some months all clients want major work simultaneously. Other months, crickets.

Undervaluing work. Clients paying £500/month for £800 worth of work think they’re getting a deal. Eventually, you resent underpricing.

Client retention. Losing a £1,500/month client hurts. You need to replace that revenue quickly.

Setup time. Building a retainer portfolio takes 6-12 months. You need enough runway to get there.

My experience: I transitioned to retainers in year 2. Revenue stability improved dramatically. But I underpriced initially and had to gradually increase rates or transition underperforming clients out.

Model 3: Productized Subscriptions

Instead of custom retainers, you offer standardized packages at fixed monthly prices.

How It Works

You create defined service tiers:

Clients choose a tier. You deliver standardized service. No custom quotes, no scope negotiation.

The Benefits

Maximum predictability. You know exactly what each tier involves and how much time it requires.

Marketing simplification. Clear pricing on your website. Prospects can self-select. Less sales time.

Operational efficiency. Standardized service means repeatable processes. You get faster at delivery.

Scalability. With clear packages, you can eventually hire or automate. Harder with fully custom work.

Better margins. You optimize delivery for each tier. No underpricing or scope creep.

The Challenges

Client fit. Many clients want custom solutions. Productized packages don’t suit everyone.

Market education. Prospects expect custom quotes. Explaining productized model takes effort.

Competitive pressure. Transparent pricing means competitors can undercut you easily.

Initial development. Creating the packages, processes, and marketing requires significant upfront work.

Limited flexibility. Unusual client needs don’t fit packages. You either decline work or break your model.

My experience: I experimented with productized subscriptions in year 3. They work for specific market segments (small local businesses wanting simple sites) but don’t suit all clients. I use them for a portion of my business, not exclusively.

Model 4: Hybrid Approach

Most successful solo agencies use combinations of models.

My Current Hybrid Model

Foundation: Retainer clients (60% of revenue)

• 8 clients at £400-1,200/month
• Provides £5,000-6,000 baseline monthly income
• Ongoing work I can schedule predictably

Growth: Project work (30% of revenue)

• 1-2 larger projects quarterly (£4,000-8,000 each)
• Often comes from retainer clients or referrals
• Adds £1,500-2,500 monthly averaged across year

Experiment: Productized offering (10% of revenue)

• “Restaurant Website Package” at £200/month
• Currently 3 clients, testing viability
• Adds £600 monthly

Total: £7,100-9,100 monthly revenue

This provides stability (retainers), growth (projects), and experimentation (productized).

Why This Works

Balanced risk. If project pipeline slows, retainers provide baseline. If retainer client leaves, project work fills gap.

Workload flexibility. Light retainer months allow project work. Heavy retainer months mean declining projects. You control pace.

Multiple lead sources. Retainers come from relationships. Projects come from marketing. Productized comes from SEO and ads. Not dependent on single channel.

Natural upsell. Productized clients upgrade to custom retainers. Retainer clients commission larger projects. Project clients become retainer clients.

Income growth. Revenue isn’t capped by hours. Efficient retainer delivery + occasional high-value projects + scalable productized work compound.

The Transition Strategy

Moving from pure project work to hybrid model requires planning:

Phase 1: Build While You Sell (Months 1-6)

Continue project work for income. As you complete projects, offer ongoing support retainers.

“Would you like ongoing support for £X/month? Includes hosting, updates, and technical help.”

Conversion rate: About 30-40% of project clients say yes if offer is valuable.

Target: Add 2-3 retainer clients within 6 months.

Phase 2: Prioritize Recurring Revenue (Months 6-12)

Actively market retainer services. Offer incentives for annual commitments.

Gradually increase retainer rates for new clients (grandfather existing clients temporarily).

Target: 5-8 retainer clients generating £3,000-5,000 monthly.

Phase 3: Selective Project Work (Months 12-18)

With retainer foundation, become selective about projects. Only take high-value or strategically important work.

Target: 8-10 retainer clients. 1 project monthly average.

Phase 4: Optimization and Growth (Months 18+)

Systemize retainer delivery. Experiment with productized offerings. Raise rates strategically.

Consider hiring contractors for overflow work.

Target: £7,000-10,000 monthly with growing proportion from recurring revenue.

Pricing Mistakes I Made

Learn from my errors:

Underpricing to Win Work

Early on, I quoted £1,500 for sites worth £4,000 because I wanted portfolio work. This attracted price-focused clients who were difficult to work with and unprofitable.

Lesson: Price for your target market, not desperation market.

Unclear Retainer Scope

I agreed to “ongoing updates” without defining limits. Clients requested 15 hours of work for £500/month retainers.

Lesson: Specific scope and hour limits in contracts. “Up to 4 hours monthly” prevents abuse.

Not Raising Rates

I kept rates static for 18 months while skill and speed improved. I was earning far below market rate.

Lesson: Review rates every 6-12 months. Increase for new clients. Grandfather existing clients temporarily, then transition them up or off.

Accepting Every Project

I took projects outside my expertise or below my standards because I needed revenue. They took longer, delivered less value, and damaged reputation.

Lesson: Saying no to wrong-fit work creates space for right-fit work.

Not Tracking Profitability

I knew revenue but not which clients or projects were actually profitable. Some “good” clients consumed excessive time.

Lesson: Track time against revenue by client and project. Optimize or exit unprofitable relationships.

Real Numbers: My Year 3 Revenue

Here’s what my actual revenue looked like in my third year (2025-2026):

Retainer clients:

• Client A: £1,200/month × 12 = £14,400
• Client B: £800/month × 12 = £9,600
• Client C: £600/month × 12 = £7,200
• Client D: £500/month × 12 = £6,000
• Client E: £400/month × 12 = £4,800
• Clients F-H: £350/month × 12 × 3 = £12,600
• Subtotal: £54,600

Project work:

• 2 × £6,000 projects = £12,000
• 3 × £4,000 projects = £12,000
• 4 × £2,500 projects = £10,000
• Subtotal: £34,000

Productized packages:

• 2-3 clients averaging £500/month = £6,000
• Subtotal: £6,000

Total revenue: £94,600

Expenses: £18,500 (tools, hosting, insurance, marketing, accounting)

Pre-tax profit: £76,100

Effective hourly rate: £76,100 ÷ 1,440 hours = £52.85/hour

This isn’t spectacular, but it’s stable, sustainable, and growing. Year 4 projections are £120,000+ as retainer base expands and I increase rates.

What Works in 2026-2027

The market is shifting. Here’s what I’m seeing:

Subscription models are gaining acceptance. Clients increasingly understand monthly payment for websites. Resistance is lower than 3 years ago. My own outright service addresses this with a hybrid approach.

AI enables hybrid models. With AI-assisted development, you can deliver more value per hour. This makes retainers more profitable and projects faster.

Value pricing beats hourly. Clients care about outcomes, not hours. Charging based on value delivered (not time spent) allows better margins.

Specialization commands premium. Generic “website developer” struggles to charge premium rates. Specialized positioning justifies higher pricing.

Annual contracts provide strong results. Clients paying annually (with discount) give you cash flow and commitment. Worth offering 15-20% discount for annual payment.

My Recommendation

If you’re starting a solo development agency:

Year 1: Focus on project work. Build portfolio, refine skills, learn client management. Accept some lower-paying work for experience.

Year 2: Start adding retainers. Convert 30-40% of project clients to ongoing support. Maintain project pipeline but prioritize recurring revenue.

Year 3: Build hybrid model. Aim for 50-60% recurring revenue, 30-40% projects, 10% experimental. Raise rates strategically.

Year 4+: Optimize operations. Systemize delivery. Consider hiring or partnerships for scale. Focus on higher-value work.

The goal: predictable £7,000-10,000 monthly revenue with manageable workload by end of year 3.

This won’t make you wealthy quickly. But it’s sustainable and provides good living as a solo developer.

The businesses that succeed combine strategic pricing, excellent delivery, clear positioning, and realistic expectations.

Revenue models are tools. Use the right combination for your market, skills, and goals. And be willing to adapt as you learn what works.