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Today, Freshbooks announced that it is releasing industry benchmark data as an added benefit to freelancers as well as micro and small business owners, arming them with information to better manage business revenue and growth. Based on the anonymous aggregation of data based on input from FreshBooks’ clients, the new reports illustrate billing trends.
Data in the reports includes
- average monthly revenue
- invoice size
- time until payment is received
- percentage of clients paying online vs. via mail
The input from over 500,000 businesses make up the data which used to only be available top clients but will now be made publicly available on a quarterly basis.
Recurring Revenues Rule
The report shows that 20% of the businesses using FreshBooks have recurring revenues.
According to a FreshBooks spokesperson, “recurring revenues can be unique across professions, (so) it is really more a factor of how much of your revenues are recurring and that can smooth out your cash flow.”
Knowing where your business stands on recurring revenues in comparison to your peers can influence how you look at your business model and lead to positive changes and growth. From a Web working perspective, recurring revenues could be represented by Web hosting, monthly retainers, or monitoring fees.
This report has made me think not only about the importance of identifying recurring revenue opportunities for my own business, but also made me realize that I haven’t been properly set up the recurring revenues that I already do have established.
Web Worker Data
Web Workers can access relevant data for Web Professionals to access Q3 data. Sample data includes the amount invoiced last quarter ($18,961.68), the average time to collect payments (16 days), and the average amount invoiced per client billed ($2680.23). Web Professionals – which includes Web developers, Webmasters, Web Analysts and Online Community Managers – received 35.1% of revenues from new clients and 11.9% recurring revenues. Data from IT professionals has also been compiled.
While the company won’t reveal what percentage Web workers make up out of their overall clients, they do say that the percentage is very high due the nature of who is more likely to use SaaS and that Web workers are at the heart of FreshBooks.