The verdict in three sentences
A digital agency business plan stands on three pillars: a service mix (showcase sites, e-commerce, recurring maintenance), a gross margin of 40-60 %, and a break-even around 4-8 projects per month. Recurring revenue (maintenance, SEO, hosting) stabilises cash flow better than one-off projects. In Lagos in 2026, a lean agency reaches profitability without fundraising if acquisition stays controlled.
Structure and assumptions of the business plan
The core of the BP is a 12-month projected income statement, driven by volume and price assumptions. Here is a realistic mix for a 3-4 person agency (FCFA figures, convert locally).
| Offer | Average price | Gross margin | Target volume/month |
|---|---|---|---|
| Showcase site | 350,000 FCFA | 55 % | 4 |
| E-commerce | 1,200,000 FCFA | 45 % | 1 |
| Recurring maintenance | 60,000 FCFA/mo | 70 % | 15 contracts |
| Recurring SEO | 120,000 FCFA/mo | 65 % | 6 contracts |
| Redesign / custom | 800,000 FCFA | 50 % | 1 |
With this mix, projected monthly revenue exceeds 3,500,000 FCFA, with a recurring share that covers fixed costs.
Break-even and 12-month projection
Figures are 2026 orders of magnitude. Break-even is the activity level covering fixed costs (rent, salaries, tools).
| Item | Monthly amount |
|---|---|
| Salaries (3-4 people) | 1,400,000 FCFA |
| Rent + utilities | 250,000 FCFA |
| Tools / hosting | 120,000 FCFA |
| Acquisition (ads, sales) | 300,000 FCFA |
| Total fixed costs | ~2,070,000 FCFA |
| Break-even (50 % margin) | ~4,140,000 FCFA revenue |
That is roughly 4 to 8 projects per month depending on the mix. Recurring revenue (maintenance + SEO) contributes about 1,620,000 FCFA/month here, easing pressure on one-off sales.
Become a Kolonell referral partner
A low-cost acquisition lever for your agency: the Kolonell referral (apporteur d'affaires) program. You refer a client, we deliver, you earn a commission.
| Segment | Sale commission | Recurring |
|---|---|---|
| Showcase | 15 % | 5 % recurring |
| E-commerce | 12 % | — |
| Marketplace | 10 % | — |
| Institutional | 8 % | — |
On a 350,000 FCFA showcase site, the referrer earns 52,500 FCFA, plus 5 % on recurring maintenance. It is an ideal extra revenue line while you build your own portfolio.
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Mini case study
Tunde opens his agency in Lagos with 3 people. Month 1: 2 showcase sites + 3 maintenance contracts, i.e. 880,000 FCFA revenue, below break-even. Month 6: 4 showcase sites, 1 e-commerce and 15 maintenance contracts, i.e. ~3,900,000 FCFA, closing the gap to the 4,140,000 FCFA break-even with recurring SEO. He tops up with 2 Kolonell referrals (105,000 FCFA in commissions) and reaches balance in month 7.
FAQ
What margin should a web agency target?
A gross margin of 40-60 % is realistic; recurring maintenance reaches 65-70 % because marginal costs are low.
How many projects to be profitable?
With fixed costs around 2,000,000 FCFA/month and a 50 % margin, you need ~4,140,000 FCFA revenue, i.e. 4-8 projects depending on mix.
Should I raise funds?
Rarely at the start: a services agency turns profitable on sales. Reserve fundraising for a product/SaaS pivot.
Why bet on recurring revenue?
Maintenance, SEO and hosting smooth cash flow and cover fixed costs independently of project sales.
How do I start as a Kolonell referrer?
Refer a client via WhatsApp; on signing, you earn 8-15 % by segment, plus a recurring share on showcase sites.
Let's talk about your project. We help you model your BP and activate the referral program. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
