Dec 8, 2025
Dan Latham
The most common question new agency owners ask is simple. "How do I charge for this?"
Do you charge a big one time fee to build the agent? Or do you charge a smaller monthly fee to keep it running?
Most freelancers instinctively want the setup fee. It feels like safe cash in the bank. But if you want to build a sellable asset, you need to shift your mindset.
The real money in AI is not in the building. It is in the hosting.
Here is why you should prioritize the retainer, and the exact pricing model successful agencies are using in 2025.
The Trap of the "Setup Fee Only"
Charging £1,000 upfront sounds great. You do the work, you get paid, you move on.
But this creates a hamster wheel. Every month, you start at zero. You have to hunt for new clients constantly just to keep the lights on.
Worse, it devalues the ongoing service. If the client thinks they "bought" the bot, they expect it to work forever for free. When OpenAI updates their models or the client changes their pricing, they will email you expecting a free fix.
The Power of the Retainer (MRR)
The goal of an AI Automation Agency is not to be a dev shop. It is to be a utility provider.
You want to be like the power company. The client pays you every month because if they stop paying, the lights go out.
When you charge a monthly fee (e.g., £99 to £299/mo), you are selling:
Hosting: The bot lives on your infrastructure (Kuga).
Maintenance: You ensure it stays online.
Tweaks: You update their knowledge base when they change their prices.
Peace of Mind: They don't have to understand how it works.
The Math: Setup vs. Retainer
Let’s look at two agencies over 12 months.
Agency A (Setup Only)
Sells 1 bot per month at £1,000.
Month 12 Revenue: £1,000.
Total Year Revenue: £12,000.
Stress Level: High. You are always hunting.
Agency B (Retainer Only)
Sells 1 bot per month at £0 setup, £199/month.
Month 12 Revenue: £2,388 (Recurring).
Total Year Revenue: ~£15,000.
Stress Level: Low. You start next month with £2,400 in the bank before you do anything.
By the end of the year, Agency B is making double what Agency A makes in a month, without finding a single new client.
The Winning Model: The "Hybrid"
You don't have to choose just one. The best agencies use a Hybrid model to filter out bad clients while building MRR.
The Structure:
Setup Fee: £250 - £500. (Covers your time to scrape the site and prompt the bot).
Monthly Subscription: £99 - £199/mo. (Covers the Kuga subscription and your profit).
This is the sweet spot. The setup fee ensures the client is serious. The monthly fee builds your empire.
How to Justify the Monthly Fee
Clients will ask: "Why do I have to pay every month?"
Your answer: "AI isn't static software. It's a live service. The monthly fee covers the server costs, the AI token usage, and the ongoing training to make sure the agent doesn't start giving out wrong answers. Think of it like hosting your website."
Summary
Don't settle for a one time paycheck. Use Kuga to build a recurring revenue machine. Your future self will thank you when you start the month with your expenses already covered.