- Connor Groce | Franchise Gateway
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- Why I prefer $7,000 one-offs over $200/month clients
Why I prefer $7,000 one-offs over $200/month clients
Most buyers overlook this, but it’s hiding in plain sight
Hi everybody!
Today I’m making the case for non-recurring revenue.
It’s not a popular argument, but it’s a conversation worth having before you buy a franchise.
(By the way: I’m not saying it’s bad. I own a recurring franchise myself. But the truth is, I’d rather sell one big job than land a $200/month client.)
Hear me out.
Ready to buy a franchise, but don’t know where to start? I’m booking free strategy calls with readers.
No strings attached. Book a time right here.
Most new franchise buyers chase recurring revenue like it’s the golden ticket.
I get it. Knowing that $X is coming in every month is a great feeling.
But here’s the other side of the argument, in 5 points:
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1. Higher ticket = higher LTV in fewer swings
Let’s say you own a mosquito spraying franchise. Your average customer pays $200/month. The average customer sticks around 18 months. That’s a $3,600 LTV (lifetime value).
Compare that to my landscape lighting business. Almost every job is one-time so there isn’t much recurring revenue, but the average ticket was $7,000.
So even though it’s a one-off, the non-recurring landscape lighting job produced twice the lifetime value in a single transaction.
No follow-up. No billing cycles. Just do great work and move on.
Both businesses might have a CAC of $400–$700 in Google or Meta ads. So which model gives you more cushion?
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2. You get paid upfront
This matters more than you think. Because cash flow timing can make or break a small business.
In my holiday lighting business, here’s how it works:
We sell a $5,000+ holiday lighting project.
The customer pays a $2,500 deposit before the job starts.
We charge the remaining $2,500 from the card on file immediately (literally before we’ve left their driveway) after the job is completed.
We pay the supplier 30 days later.
That cash sits in the business, ready to fuel growth.
Compare that to a $200/month recurring revenue customer. Let’s assume they stick around 18 months, so you’re making the same $3600.
But that’s 18 months with that cash sitting in their bank account, not yours.
Payment upfront lets you reinvest faster, stretch through slow seasons, and avoid expensive financing or loans. In a tight economy, that kind of float matters.
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3. High-ticket = marketing leverage
A lot of people complain that digital marketing doesn’t work anymore.
But it does… just not for low-ticket offers.
In a $200/month service business, you can’t afford to spend more than maybe $150 to acquire a customer. That rules out a lot of marketing channels.
But in a high-ticket model, you can spend $500, $1,000, even $1,500 and still come out ahead. That opens the door to Google PPC, SEO agencies, direct mail, niche influencers, you name it.
When you have a larger budget per customer, you can outcompete slower operators.
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4. Streamlined operations
Low-ticket recurring businesses usually require fixed staff: full-time technicians, field managers, office support. Even when revenue dips, those costs stay locked in.
High-ticket installation businesses are different. Many use subcontractors. That means:
You only pay labor when you have revenue.
You can scale up or down based on demand.
You’re not sweating payroll when sales slow down.
This makes high-ticket, project-based businesses way easier to launch from a cold start. You can grow fast without taking on huge fixed overhead.
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5. Binary outcomes are easier to scale
One final reason I prefer high-ticket businesses: they’re more binary.
You either installed the lights or you didn’t. You either replaced the fence or you didn’t. Customers don’t nitpick nearly as much.
Compare this to the window cleaning franchise I own. You can do the job 99% perfectly, but leave one smudge on the window that happens to be over the kitchen sink looking out towards the backyard.
Suddenly, the whole job was “a disaster.”
Fewer subjective outcomes means fewer customer service calls, fewer bad reviews, and fewer hours spent putting out fires.
That makes high-ticket businesses way easier to systematize and eventually hand off to a team.
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The bottom line
Everyone wants predictable cash flow. But recurring revenue is just one path to that.
If you choose the right high-ticket business (with the right pricing, marketing, and labor model), you can build a company that:
Brings in upfront cash
Runs on lower fixed costs
Delivers strong LTV
Is easier to manage
And is more capital efficient to scale
That’s why I’m bullish on high-ticket, non-recurring franchises—and why you should be too.
Want help finding one? Book a free strategy call with me. No strings attached.
Thanks for reading,
Connor
P.P.S. I’m doing a webinar with Michael Girdley next month on the pros and cons of franchising. Come on out!
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