In the field service industry, “Seasonality” is the enemy.
For an HVAC company, July is chaotic and profitable. October is dead silent. During those shoulder seasons, you still have to pay rent, truck leases, and keep your best technicians on payroll so they don’t quit to work for a competitor.
Memberships and Service Agreements are the cure for this “Feast or Famine” cycle.
By selling a “Club Membership” (e.g., $20/month for 2 tune-ups and a 15% discount), you create a steady stream of cash flow that covers your overhead every single month, regardless of the weather.
However, managing 500 contracts on an Excel spreadsheet is a nightmare. Cards expire, tune-ups get forgotten, and customers churn because they forgot they even had a plan. Modern Field Service Management (FSM) software automates this entire engine, turning an administrative headache into your company’s most valuable asset.
This guide is not just about software features. It is a blueprint for building a recurring revenue model—from designing your “Gold/Platinum” tiers and training technicians to sell, to handling the complex accounting of deferred revenue.
Quick Definitions
Recurring Revenue: Income that comes in automatically at regular intervals (Monthly/Annually). It is highly valued by investors.
Deferred Revenue: Money you have collected but haven’t “earned” yet. If a customer pays $240/year upfront for 2 visits, that money is a liability on your books until you actually perform the visits.
Churn Rate: The percentage of members who cancel their plan each year.
Evergreen Clause: A contract term stating the agreement renews automatically unless cancelled (Auto-Renewal).
| Software | Best For | Starting Price | Action |
|---|---|---|---|
| Jobber ⭐⭐⭐⭐⭐ (4.9/5) | 🚀 Best Overall Small to Med Business | $19 / month | Try Free Read Review |
| Workiz ⭐⭐⭐⭐⭐ (4.8/5) | 📞 Best for Dispatch Locksmith & Garage | $29 / month | Try Free Read Review |
| Housecall Pro ⭐⭐⭐⭐☆ (4.6/5) | 🎨 Best for Visuals Residential Sales | $49 / month | Visit Site Read Review |
| ServiceTitan ⭐⭐⭐⭐☆ (4.5/5) | 🏢 Best for Enterprise Commercial & Heavy Service | Custom Quote | Get Demo Read Review |
| FieldPulse ⭐⭐⭐⭐☆ (4.5/5) | 📱 Best Mobile App Easy to Use | $59 / month | Visit Site Read Review |
| RepairShopr ⭐⭐⭐⭐☆ (4.4/5) | 💻 Best for Repair Shops IT & Electronics | Custom Quote | Visit Site Read Review |
| Simpro ⭐⭐⭐⭐☆ (4.4/5) | 🏗️ Best for Projects Construction & Security | Custom Quote | Get Demo Read Review |
| Service Fusion ⭐⭐⭐⭐☆ (4.3/5) | 🎧 Best for VoIP Mid-Market Service | Custom Quote | Get Demo Read Review |
| FieldEdge ⭐⭐⭐⭐☆ (4.2/5) | 🔄 Best for QB Desktop Legacy Sync Users | Custom Quote | Visit Site Read Review |
| Successware ⭐⭐⭐⭐☆ (4.2/5) | 📊 Best for Accounting Plumbing & HVAC | Custom Quote | Visit Site Read Review |
| Zoho Field Service ⭐⭐⭐⭐☆ (4.1/5) | 💰 Best Budget Zoho Users | $15 / month | Visit Site Read Review |
| Thryv ⭐⭐⭐⭐☆ (4.0/5) | 📢 Best for Marketing All-in-One CRM | Custom Quote | Visit Site Read Review |
| RazorSync ⭐⭐⭐☆☆ (3.9/5) | ⚡ Simple Service Field Service Basics | Custom Quote | Visit Site Read Review |
✅ Verified Data: Checks on Jan 29, 2026 via vendor portals.
Source: Pricing Index
(DOI/Dataset).
Disclosure: We may earn commissions. Learn more & Methodology.
Why “Recurring Revenue” is the Holy Grail
It’s not just about cash flow; it’s about Business Valuation.
When you eventually sell your business, buyers (especially Private Equity) look at your Recurring Revenue.
- Company A: $1M Revenue, 100% “One-off” repair jobs. Value: ~3x EBITDA.
- Company B: $1M Revenue, 40% “Contract” revenue. Value: ~6x-8x EBITDA.
Company B is worth double because the revenue is predictable. Software allows you to build Company B without hiring an army of office staff to manage the paperwork.
The Administrative Nightmare (And How Software Solves It)
Trying to run a membership program manually leads to three specific failure modes.
1. The “Expired Card” Cliff
Problem: You have 300 members paying monthly. Every month, 2-3% of credit cards expire or get reissued due to fraud. If you don’t call the customer to update it, the payment fails, and they churn involuntarily.
Solution: Modern software (integrated with Stripe/Clearent) uses Card Updater technology. It talks to the Visa/Mastercard network to automatically update expiration dates behind the scenes, saving you hundreds of phone calls.
2. The “We Forgot Your Tune-Up” Churn
Problem: You took the customer’s money for a Spring Tune-Up, but you got busy and forgot to call them. It’s now August. The customer realizes they paid for nothing and cancels angrily.
Solution: Automated Scheduling Reminders. The software knows who is due. It sends an automated text/email: “Hi Jane, it’s time for your included Spring Tune-Up. Click here to book.”
- Related: Automated renewal reminders.
3. The Discount Disconnect
Problem: A member calls for a repair. The dispatcher forgets they are a member and quotes full price. The customer gets annoyed: “I thought I got 15% off?”
Solution: Pricebook Mapping. The software recognizes the “Member” tag and automatically applies the 15% discount to every line item on the quote and invoice.
- Related: Showing member discounts on quotes.
Designing Your Plan: The Gold/Platinum Structure
Before you configure your software, you must design a product that sells. The most successful contractors use a tiered “Good/Better/Best” approach for memberships, just like they do for equipment sales.
The “Silver” Plan (Basic Maintenance)
- Price: $14/month ($168/yr).
- Includes: 1 Tune-Up per year.
- Benefits: 10% Discount on repairs.
- Goal: Entry-level for budget-conscious homeowners.
The “Gold” Plan (The Standard)
- Price: $25/month ($300/yr).
- Includes: 2 Tune-Ups per year (Spring AC / Fall Heating).
- Benefits: 15% Discount on repairs, Priority Scheduling.
- The Hook: “Priority Scheduling” is the secret weapon. Tell the customer: “When it’s 100 degrees in July and we are booked out for 2 weeks, Gold Members go to the front of the line and get service within 24 hours.” This fear of waiting drives sales more than the discount.
The “Platinum” Plan (Total Peace of Mind)
- Price: $49/month ($588/yr).
- Includes: 2 Tune-Ups + Water Heater Flush + Electrical Safety Check.
- Benefits: 20% Discount, No Dispatch Fees, Free Filters.
- The Hook: Waiving the $89 dispatch fee is huge. If they call you twice a year, the plan pays for itself.
Configuring This in Software
When setting this up in tools like ServiceTitan or Housecall Pro, you will map these tiers to “Price Levels.”
- Gold Level = Pricebook Column 2 (15% off).
- Platinum Level = Pricebook Column 3 (20% off).
- This automation ensures that even a new technician on their first day cannot mess up the pricing.
Technician Sales Scripts: The “Pivot”
The biggest hurdle to growing a membership base is not the software; it’s the technician. Techs often say, “I’m a fixer, not a salesman.”
You need to teach them the “Pivot.” They aren’t selling a contract; they are saving the customer money today.
Script A: The “Instant Savings” Pivot
Scenario: Tech has quoted a $600 repair.
Tech: “Mrs. Jones, the total for the repair is $600. However, if you were a Club Member, you would get 15% off, which saves you $90 immediately.
The membership is only $20 today to sign up. So, if you join, you actually pay $70 less right now than if you don’t join, AND you get two free tune-ups this year. Does that make sense?”
Why it works: It is mathematically foolish for the customer to say no.
Script B: The “Insurance Policy” Pivot
Scenario: Tech is doing a routine maintenance visit.
Tech: “Your system is running okay, but it is 10 years old. I’m worried that if it fails in July, you’ll be stuck waiting in the heat because we get booked out for weeks.
Our Gold members get ‘Front of the Line’ access. For $25 a month, you guarantee that we show up within 24 hours if this thing quits. It’s like insurance against waiting.”
Why it works: It sells peace of mind (Priority), not just hardware (Tune-ups).
Related: Equip your team with these numbers using technician mobile app sales tools.
Key Features of Membership Software
1. Automated Recurring Billing
You want “Netflix-style” billing.
- Credit Card: Best for monthly plans ($15-$30/mo). High success rate.
- ACH (Bank Transfer): Best for commercial contracts ($500+/mo) to save on processing fees.
2. Deferred Revenue Tracking (Advanced)
If you sell an annual plan for $240 in January, you cannot spend all $240 in January. You must “Defer” that revenue and recognize $20 each month (or $120 per visit).
- Enterprise Tools: Software like ServiceTitan and Simpro handles this accounting automatically, syncing the correct Journal Entries to QuickBooks so you don’t get a surprise tax bill.
- Related: Syncing recurring revenue to QuickBooks.
3. Technician “Spiff” Tracking
Technicians are your sales force. You need to incentivize them to sell plans.
- The Feature: Automated Commission Tracking.
- The Workflow: If Steve sells a membership, the system automatically adds $20 (or 10%) to his paycheck report. This gamification drives growth.
Commercial vs. Residential Agreements
Not all contracts are the same.
Residential (The “Club”):
- Focus: Loyalty and Discounts.
- Structure: Simple. “Pay $20/mo, get priority service and 15% off.”
- Best Tools: Housecall Pro, ServiceTitan.
Commercial (The “Asset Maintenance”):
- Focus: Compliance and Uptime.
- Structure: Complex. “Inspect 5 RTU units at 123 Main St quarterly. Change filters on Unit 1, Belts on Unit 2.”
- Best Tools: Simpro’s asset maintenance contracts or ServiceTitan. These tools track specific equipment history (Model/Serial) tied to the contract.
Top Software for Memberships
| Software | Best For | Key Strength | Accounting Level |
|---|---|---|---|
| ServiceTitan | Enterprise | Deferred Revenue: True accounting compliance. | Advanced |
| Housecall Pro | Residential | Ease of Use: Set up a plan in minutes. | Basic |
| Simpro | Commercial | Asset Testing: Perfect for Fire/Safety contracts. | Advanced |
| Jobber | Small Biz | Recurring Jobs: Good for simple scheduling. | Basic |
The Membership Launch Checklist
Don’t launch until you have these boxes checked. A bad launch confuses customers and technicians alike.
- [ ] Define Tiers: Have you clearly defined “Gold vs Platinum” benefits?
- [ ] Pricebook Mapping: Is the 15% discount automated in the software?
- [ ] Spiff Set: Do technicians know exactly how much they earn ($20? $50?) for a sale?
- [ ] Launch Meeting: Have you role-played the “Sales Pivot” script with your team?
- [ ] Auto-Renewal Email: Have you written the automated email that goes out if a card fails?
- [ ] Marketing Flyer: Do techs have a laminated “Menu” to show customers in the home?
- [ ] Dispatch Training: Does the dispatcher know how to spot a “Gold Member” on the board and prioritize them?
FAQ: Memberships & Service Agreements
What is the difference between a service agreement and a membership?
In residential trades, they are often used interchangeably. A Membership usually implies a monthly subscription model (like a gym) with perks. A Service Agreement often implies a commercial contract with a defined scope of work (e.g., quarterly filter changes).
Should I offer a monthly or annual option?
Offer both, but push the Monthly.
Monthly Pros: Higher retention (customers forget about $20/mo), “Evergreen” (never expires), easier to sell (lower barrier).
Annual Pros: Cash upfront.
Annual Cons: Requires a buying decision every year (churn point), higher sticker shock ($240 vs $20).
How do I handle price increases for existing members?
Most contracts include a clause allowing price adjustments with notice. Software like ServiceTitan allows you to “Bulk Update” membership pricing. Send an email 30 days prior: “Due to rising costs, your plan is moving from $19 to $21. We are adding [New Benefit] to increase value.” Expect 1-2% churn, but the revenue bump offsets it.
What is “deferred revenue” in field service?
It is money you have collected but not yet earned. If you collect $300 for 3 visits, you have a liability of 3 visits. You should not treat that $300 as profit until the visits are completed. Advanced software tracks this “Liability Bucket” for you.
How do I get my technicians to sell more memberships?
Training: Teach them to present it as a discount tool (“Mrs. Jones, if you join the club today, you save $50 on this repair”).
Incentives: Pay a “Spiff” (commission) for every signup.
Tracking: Post a leaderboard in the office showing who sold the most plans.
Does software update expired credit cards automatically?
Yes, if it uses a modern payment processor like Stripe. The “Card Updater” feature checks with the bank for new card details (e.g., new expiration date) and updates the record without you having to call the customer.
Can I manage commercial maintenance contracts with this software?
Yes, but choose carefully. Simpro and ServiceTitan are built for asset-based commercial contracts (e.g., tracking individual fire extinguishers or RTUs). Simpler tools like Housecall Pro are better suited for residential “whole home” plans.
How do I schedule the free tune-ups included in the plan?
The software should generate a “Due” list. For example, in March, you pull a report of all members due for AC Tune-ups. You can then bulk-email or bulk-text them a booking link to fill your schedule.
Does membership software sync with QuickBooks?
Yes. It syncs the Invoice and the Payment. If you use “Deferred Revenue” features (ServiceTitan/Simpro), it can even sync the Journal Entries to move money from “Liability” to “Income” as you perform the work.
What happens to my agreements if I switch software?
This is the hardest part of switching. You can usually import the customer data, but migrating the encrypted credit card tokens is difficult. You often have to work with the payment processor to migrate the tokens or ask customers to re-enter their billing info (which causes churn). Plan this carefully.
Sources
- ServiceTitan Service Agreements (Verified Jan 2026) – https://www.servicetitan.com/products/service-agreements
- Housecall Pro Service Plans (Verified Jan 2026) – https://housecallpro.com/features/service-agreements
- Stripe Billing & Card Updater (Verified Jan 2026) – https://stripe.com/billing
- Investopedia: Deferred Revenue (Verified Jan 2026) – https://www.investopedia.com/