A maintenance agreement (also called a service agreement, service contract, or maintenance plan) is a formal contract between a home service company and a homeowner. The homeowner pays a recurring fee, and the contractor provides scheduled preventive maintenance visits, often twice per year for HVAC (spring AC tune-up and fall heating tune-up). Most maintenance agreements also include additional benefits like priority scheduling during peak season, discounts on repairs, and sometimes parts warranties. For contractors, maintenance agreements create predictable recurring revenue, reduce call seasonality, and build long-term customer relationships that generate repeat business and referrals.
A contractor with 500 maintenance agreement customers generating $300/year each has $150,000 in predictable annual revenue before receiving a single service call. This base revenue covers fixed costs and smooths the cash flow swings that plague many service businesses. Maintenance customers also have 2-3x higher lifetime value than one-time customers and refer at higher rates.
AutoRev supports maintenance agreement growth through outbound AI calling campaigns that reactivate past customers and convert them to agreement holders. The AI can also promote maintenance agreements during inbound calls and follow up on leads who expressed interest but did not convert. This automates the sales process that most contractors do inconsistently.
Revenue that is earned on a predictable, repeating basis, typically from service contracts or maintenance agreements that automatically renew each year.
The ability of a business to keep customers returning for repeat purchases over time, measured as the percentage of customers who remain active within a defined period.
A marketing process that re-engages past customers who have not purchased services recently, encouraging them to book again through targeted outreach.
The periods of highest demand for HVAC services, typically occurring in summer (air conditioning) and winter (heating), when equipment failures and maintenance needs surge.