Not all revenue is created equal, and pricing it the same is the most common valuation mistake on both sides of the table.
Recurring service revenue. Weekly/biweekly auto-billed maintenance. This is the highest-quality revenue, valued at the full multiple (9–14x monthly recurring for residential). It transfers reliably. It's predictable. It's why this business is buyable.
One-time cleaning and openings/closings. Real revenue, but tied to seasonal demand and seller relationships. Value at 30–60% of the recurring multiple. A $2k/month one-time stream is worth maybe $6–12k as goodwill, not $24k.
Repair revenue. Highly seller-dependent. A homeowner trusts the tech they know, not the LLC. Repair revenue typically transfers at 40–70%. Value at 3–6x monthly.
Equipment installs. Project-based, often dependent on supplier relationships and the seller's reputation. Treat as zero in the valuation; price it as upside if it materializes for you.
Construction/remodel. Don't buy this. It's a different business with different licenses, insurance, project risk, and skills. If a seller's "$30k/month" route is really $18k recurring + $12k construction-and-installs, you're buying $18k.
The clean revenue cut. Always re-state revenue into recurring vs. non-recurring before applying any multiple. Asking for "the customer billing report by month and category" early in diligence makes this trivial; trying to reverse-engineer it from QuickBooks at month two of diligence is painful.
