Margins

Pricing for Profit: How to Set Margins That Maximize Recurring Revenue


The difference between a hobby and a business often comes down to one thing: pricing strategy.

We see it all the time on our leaderboard. Resellers with similar client counts but wildly different profits. The difference? How they price their services and structure their billing cycles.

Here’s what the top earners do differently.

Understanding Your Storefront Profit Margin

In your Products & Pricing settings, you’ll see a slider for “Storefront Profit Margin.” The default is 20%, but that’s just a starting point.

How it works: If a service costs $15/month wholesale and you set a 50% margin, your storefront price becomes $22.50/month. You keep the $7.50 difference.

But here’s the thing—you’re not limited to percentage markups. You can (and should) price based on value, not cost.

The Value-Based Pricing Approach

Your wholesale cost for an AI Voice Agent is $30/month. But what’s it worth to a busy dentist who’s missing calls and losing patients?

Probably a lot more than $30.

Consider what your clients are comparing against:

  • Hiring a receptionist: $2,500+/month
  • Missing 10 calls/month at $500 average value: $5,000/month lost
  • Your AI Voice Agent at $99/month: Obvious choice

When you price at $99 instead of $45, you’re not overcharging—you’re pricing appropriately for the value delivered.

The Power of Annual Billing

Look at the billing cycle options available for each product:

CycleMonthly EquivalentSavings
Monthly$15
Quarterly$13.33Save $5
Bi-Annual$12.50Save $15
Annual$11.67Save $40

Why offer discounts for longer commitments?

  1. Cash flow – Get 6-12 months of revenue upfront
  2. Reduced churn – Annual clients don’t cancel month-to-month
  3. Operational runway – One dashboard stat shows your “days of funding left”

Top resellers push annual billing hard. A client paying $140/year is more valuable than one paying $15/month who might cancel after 3 months.

Bundle Strategy: The Real Money Maker

Single-tool sales are fine. Bundles are better.

Example “Local Business AI Bundle”:

ToolWholesaleBundle Price Contribution
AI Live Chat Bot$15
AI Lead Capture$12
AI Review Responder$10
AI Website Health Monitor$8
Your Cost$45
Your Bundle Price$149/month
Your Profit$104/month

That’s a 230% markup—and it’s still a no-brainer for clients who’d pay $500+/month to an agency for similar services.

Analyzing Your Current Position

Check your dashboard stats:

  • Monthly Recurring: What’s your current MRR?
  • Quarterly/Biannual/Annual: How much is locked in longer-term?
  • Operational Runway: How many days of funding do you have?

If most of your revenue is monthly, you’re exposed to churn risk. Push existing clients toward annual plans with a “lock in your price” offer.

The Currency Advantage

ResellPortal supports multiple currencies—USD, EUR, GBP, CAD, AUD, JPY, BRL, INR, ZAR, TRY, NGN.

If you’re serving international clients, pricing in their local currency removes friction. The platform handles conversions automatically.

Action Items for This Week

  1. Review your margin setting – Is 20% leaving money on the table?
  2. Create a bundle – Combine 3-4 complementary tools at a premium price
  3. Email existing monthly clients – Offer 2 months free for switching to annual
  4. Audit your pricing against value – What’s each tool actually worth to your clients?

The resellers on our leaderboard hitting $4,000-$5,000/month in profit didn’t get there by accident. They got there by pricing strategically and locking in recurring revenue.

Your turn.


Optimize your pricing: Head to Products & Pricing in your dashboard at panel.resellportal.com.

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