Contractor Finance Glossary
What is Pull-Through Revenue?
Also called: service agreement pull-through, drag-along revenue
Pull-through revenue is the additional repair, replacement, and project work that a service agreement generates beyond the contract fee itself, because the recurring visit puts you in front of the customer when problems surface.
The membership fee on a service agreement is rarely where the money is. The value is that a technician is standing in the customer's building on a schedule, which is the moment failing equipment gets found and quoted. That downstream work is pull-through revenue, and it often dwarfs the agreement fee.
Contractors who price agreements only on the recurring fee undervalue them and let them lapse. When an agreement expires, the pull-through pipeline expires with it, and the customer becomes a cold lead again. Measuring pull-through is what turns a service agreement from a low-margin chore into the top of a profitable funnel.
How it is calculated
Pull-through revenue = total revenue from a service-agreement customer (repairs, replacements, projects) minus the recurring agreement fee, measured over the agreement term. Divide by the number of agreements to get average pull-through per contract.
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