If you want more predictable income in your plumbing, electrical, HVAC, or commercial contracting business, service agreements might just be the untapped key.
In episode 473 of The Site Shed, host Matt Jones welcomes Sean Samson (of Sean Samson Training), who shares how selling service agreements can transform a reactive trade business into a proactive, profitable machine.
If you’re tired of chasing new leads daily and want to build predictable, recurring revenue, this episode is packed with practical tips, hard-won lessons, and actionable frameworks you can start implementing today.
🔁 Why Service Agreements Matter
Tradies and contractors often operate reactively: a call comes in, the job gets done, and the cycle repeats. But what if you could generate recurring revenue, increase customer lifetime value, and reduce your ad spend, all while building deeper trust with your clients?
A service agreement creates scheduled maintenance and compliance check-ins, helping you:
Return regularly to clients you’ve already won (maximising your marketing dollars)
Offer real added value so you stand out from local competitors
Create a more stable pipeline of work across all seasons
“This is a very smart way for you guys to improve your recurring revenue and reduce some of the overheads that you're currently experiencing... There are companies out there that do it very well. If you're not, then there is a massive area that you can improve on.”
🛠 What Does a Service Agreement Look Like?
On the commercial and industrial side, service agreements are focused on compliance (like electrical standards NFPA 70E and 70B) and manufacturer requirements. They’re not just a ‘nice to have’, they’re often mandatory for safety and insurance purposes.
Residential agreements require more creativity. The best targets? Homeowners with larger properties, critical IT systems, or genuine business interruption risks. Think annual HVAC checks, scheduled drain cleaning, or technology add-ons like infrared thermography for electrical inspections. Focus on value where it really counts for the owner.
Sean’s practical advice:
“People buy because of the loss of something happening. They don’t buy because of bells and whistles or the gain … When you sell service agreements, have very good discovery and understand what the loss is if they don’t put together these programs.”
📈 Building Your Sales Process
No service agreement program will work without a repeatable sales process. Sean emphasises having multiple touch points with customers to truly gauge their needs, qualify the opportunity, and build rapport.
- Use a structured approach to discover pain points and position your program around risk prevention.
- Demonstrate clear ROI for higher-value clients (“We’ve been out to your house three times this year; join our annual program, and we’ll waive call-out fees and proactively maintain what keeps breaking!”)
- Remember: not every customer will be interested, but if you don’t offer it, you’ll never sell it.
💡 Technology & Operations Essentials
A successful service agreement program needs more than good intentions, it requires robust systems. Use digital tools to:
Track maintenance schedules
Automate reminders
Store asset reports and compliance documents
Collect relevant data to prove ongoing value
Sean’s tip: “You do need to have technology to back it. Like it's not something you run out of a diary. You’ve got to have tools in place ... reminders built in and all this kind of stuff.”
📊 The Power of Recurring Revenue (and Exit Value!)
Recurring service agreements do more than just smooth out your cash flow, they massively boost your business value, including for M&A or sale. Sean shares a recent example:
“We just had a client sell their business … Over the last three years they grew their service and maintenance side 800%. They sold for eight times EBITDA, because they had recurring revenue on the books.”
Don’t let transactional thinking and lack of follow-up keep you in the daily grind.
📚 Resources from this Episode
- EMA Plus – Software for Sparkies
- Get in touch with Sean Samson:
Want to unlock your business's hidden potential?
Ready to build a smarter, more scalable business?
👉 Book a free strategy call – let’s design your digital operations roadmap and get you moving faster.
