Three simple ways to start earning recurring revenue for your business
As business owners, we are always trying to find ways we can increase revenue streams.
Adding a recurring revenue stream (or two, or three!) can provide a predictable, ongoing source of income which can increase profits., and, it’s a great way to provide a buffer for any unexpected sales dips.
Here are three simple ways to start earning recurring revenue for your business.
The most tried and true recurring revenue model, the subscription that automatically rolls over each month unless cancelled.
Think newspapers, magazines, Netflix, and those delightful subscription boxes that arrive each month containing food items, craft kits, cosmetics, specialty teas or books which customers love because they make their lives easier or more pleasant. As long as they feel they’re getting value for their money, your customers won’t give the small monthly fee charged to their credit card a second thought.
Tip: Research what your competitors are offering, and talk to your customers about the kinds of products or services they’d be happy to pay for on a monthly basis.
If you’re an expert in your field, a membership site can provide a lucrative opportunity to serve more clients online — and earn more income.
In addition to paid, password protected content, your membership site can offer your clients an online community portal, where they can socialise and connect with you and other experts for group and one-on-one mentoring.
A membership site allows the freedom for coaches and consultants to serve clients all over the world. Technology has made it easy to do everything online and there are some excellent providers in this space that have tool-kits, templates, payment gateways and membership management.
Tip: If your website is built on WordPress there are a number of membership site plug ins available to let you accept secure credit card payments and provide member-only access to certain content.
Unlike set monthly subscriptions, being an affiliate may offer a less predictable income stream, but, nonetheless, an opportunity to earn some passive income.
With the affiliate model, brand ambassadors are paid a set fee or percentage of each total sale for each successful referral. If you’ve built credibility and trust in your brand or industry, some of your customers will likely be willing to pay for the products and services you recommend.
How to get started: Make a list of the businesses that you regularly buy from. Check each company’s website to learn how to become an affiliate. Once you’ve signed up, you’ll be sent a unique link to share with your customers. Every time a purchase is made using the link, you’ll earn a referral fee.
To learn more about the benefits of setting up recurring revenue streams, take a look at John Warrillow’s, The Automatic Customer: Creating A Subscription Business in Any Industry.
In addition to increasing sales and profit margins, recurring revenue can lead to better customer retention as well as greater growth for your business.
Now that you know a bit about recurring revenue streams, what product or service do you have that could become a subscription or membership based revenue stream?