Revenue & Retainers

Average Revenue Per Client (ARPC)

Agency glossary · Updated July 2026

Definition

Average revenue per client (ARPC) is the average recurring revenue an agency earns from each active client over a period, usually a month or a year. Rising ARPC means the agency is expanding existing accounts rather than only adding logos.

FormulaNet agency revenue in the period / number of active clients

Why it matters

Growing ARPC compounds revenue without a matching rise in sales and onboarding overhead, and larger accounts are usually cheaper to service per dollar.

Common mistake: measuring ARPC on gross billings that include pass-through ad spend, which massively overstates it for media-heavy shops. Use agency gross income.

Is average revenue per account the same thing?

Yes, and which word you use depends on who you sell to. Average revenue per account, ARPA, is the SaaS term, where one account can hold many users. Average revenue per client is the agency version of the same division: total revenue over the number of clients in the period. The trap is identical in both: an average hides the shape. One large client among ten small ones produces the same average as ten even ones and a completely different level of risk.

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