In the pooled research distribution, 1.4% of service agreements carry half the listed annual contract value
Across 83,535 contractor service agreements, the 1.4% over $100K in annual value carry 50% of total listed annual contract value, and that top tier averages $520K each. At the other end, 61% are under $5K. Check whether your own book is similarly concentrated. If a few agreements carry most of its contract value, spreading renewal effort evenly can under-protect them.
Annual contract value distribution
| Annual contract value | Share of agreements | Share of listed annual contract value |
|---|---|---|
| Under $1K | 27% of SAs | 1% of listed annual contract value |
| $1K-$5K | 34% of SAs | 6% of listed annual contract value |
| $5K-$10K | 16% of SAs | 8% of listed annual contract value |
| $10K-$25K | 14% of SAs | 15% of listed annual contract value |
| $25K-$100K | 7% of SAs | 21% of listed annual contract value |
| $100K+ (avg $520K) | 1.4% of SAs | 50% of listed annual contract value (ACV) |
Source: The Level Index, 83,535 service agreements with tracked ACV. Shares are rounded and may not total 100%. Aggregated and anonymized. Download the data (JSON), free to cite with attribution.
Renewal: track it by dollars, not count
The historical 35-50% range and below-30% review reference disagree with the older 85-90% strong, 75% typical and below-70% warning references. Their source populations, eligible cohorts and periods are unverified, so none establishes a healthy renewal target. Keep them as review prompts until reconciled. For one stated window, count renewal is agreements renewed / eligible agreements; dollar renewal is listed annual contract value renewed / listed annual contract value eligible to renew. Report both by contract-value tier. The trap is that the biggest agreements can require extra renewal attention when large contracts get re-bid. A book can look healthy on renewal count while quietly bleeding its most valuable accounts. Check the contract-value concentration in your own book. If it resembles the pooled distribution, weight renewal effort toward its highest-value agreements.
This is the same lesson as the invoice distribution and it connects to SA margin and pull-through: if a few accounts carry your own listed contract value, protect and grow those first.
Frequently asked questions
Which service agreements actually matter to my revenue?
Inspect your own book. In the pooled distribution across 83,535 contractor service agreements, the 1.4% with annual contract value over $100K carry 50% of total listed annual contract value, and that top tier averages $520K per agreement. Meanwhile 61% of SAs are under $5K and carry about 7% of total listed annual contract value. If your own book shows similar concentration, spreading renewal effort evenly can leave its highest-value agreements under-protected.
How should I assess service agreement renewal?
The historical 35-50% range and below-30% review reference disagree with the older 85-90% strong, 75% typical and below-70% warning references. Their source populations, eligible cohorts and periods are unverified, so none establishes a healthy renewal target. Keep them as review prompts until reconciled. For one stated window, count renewal is agreements renewed / eligible agreements; dollar renewal is listed annual contract value renewed / listed annual contract value eligible to renew. A pattern worth watching: high-ACV accounts may be re-bid at renewal; test whether this affects your own book, so a book can look healthy on count while quietly losing its most valuable agreements. Track renewal by annual contract value tier, not just by agreement count.
What is the average value of a service agreement?
The published distribution is highly concentrated, so the average is misleading on its own; it does not establish a statistical power-law fit. The median SA is small (most are under $5K in annual contract value), but the $100K-plus tier averages $520K and pulls the simple average well above the median. That is the whole point: manage the book by dollars, not by number of agreements.
How is this measured?
From 83,535 contractor service agreements with tracked annual contract value in Level's contractor benchmark research. ACV distribution is agreement count and listed annual contract value by value tier, not recognized revenue or cash. The renewal references are retained historical planning ranges, with eligible cohort and period unverified; calculate renewed divided by eligible-to-renew agreements separately. Aggregated and anonymized; no individual company is identified.
Operating review
Questions before renewing service agreements
The margin, cash, and operating questions we check first when reviewing your numbers.
Which recurring agreements consume the most unpriced service?
Contract value alone does not explain travel, callbacks or included labor.
Do renewal reminders reflect the agreements at risk?
A renewal count can conceal the value and service obligations of the affected contracts.
What does a discounted renewal commit you to deliver?
An upfront discount can change contribution without changing the work promised.
Analysis by Sam Yang, Founder, Level. Compiled from Level's proprietary contractor benchmark research.
Source: The Level Index, Service Agreement Value Benchmarks, 83,535 service agreements. US contractors. Data vintage 2022 to 2026, last updated Q3 2026. Aggregated and anonymized.
Suggested citation: "The Level Index, Service Agreement Value Benchmarks, Level (levelcfo.com), 2026." Method: see the benchmark methodology.
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