Your Recurring Revenue Model

Recurring Revenue: How you can build it for your business

Let’s talk about Recurring Revenue! It’s one of the most profitable and easiest systems you could put in place for your business. Recurring revenue is income generated in a business that comes in regularly, usually monthly or yearly payments. This can be counted on for coming in with a very high degree of certainty.

With a recurring income model, business owners can determine what percentage of revenue could be lost each month as well as what new subscriptions or payment plans are joining. If you are tracking membership metrics with a metric dashboard, you practically have the ability to predict your next month’s revenue. However, you should know that recurring revenue is not some sort of magic money maker, it requires hard work to keep your customers sticking around for years!

Here are 7 models to form your perfect recurring revenue business around:

1. Subscription-based Tangible Products

One of the greatest subscription ideas out there are the “box subscriptions.” These have made a huge impact on the market. Companies like Dollar Shave Club, BirchBox, Stitch Fix, and a lot of other awesome companies have really grasped the idea. 

2. Recurring Revenue Based on Affiliate Subscriptions

This is an awesome way to utilize recurring revenue that many people don’t know about. When you are an “affiliate” you profit off of being the middleman. Essentially, if you get people to sign up to use certain software, you can get a percentage of that subscription. It’s a cool way to earn revenue because you get to introduce your clients to awesome products that can really help them, plus you can make money off of it!

3. Membership Sites

When you form a website that involves memberships, you have the ability to create community, culture, coaching, or create a space where you can deliver awesome content. As well as this, you can create a consistent source of revenue for your business. By selling online memberships you can make packages, resources, and all sorts of combinations of awesome content for your customers.

4. Software Service Subscription

A great way to create recurring revenue is through software. For example, Adobe has been killing the game with their subscription-based plans for Photoshop, Lightroom, Premiere, and all of the other amazing software available with their subscription plans. By doing this, you create a natural way for customers to keep using good products, while keeping a steady inflow of cash.

5. Online Membership and Tangible Product Combination

This option is an interesting technique, but could be very lucrative. You see, in this model, you can sell online content for a subscription OR tangible information packages offered monthly for a subscription rate. If you do this, you will have vast opportunities to provide content and material to keep your customers onboard. 

6. Retainer and Service Plans

For a lot of businesses, such as my own, there are options where your customers can subscribe TO YOU. For example, at Reib Law, we provide customers with the Access Program. In this program, they have access to services, business advice, and legal experts all for a set monthly fee. This has created a lot of financial freedom for our company thus allowing us to focus on what matters, our clients.

7. Evergreen Course Programs

If you have curriculum built by your company, you can offer this as a subscription too. A big part of giving out content is finding a way to receive money for said content. If you can keep people paying you for the knowledge you ALREADY have, you’ll be in a good spot.

In our company, ReibLaw, we have developed well-functioning systems that allow us to help our clients with estate planning, business coaching, trust and will formation, and reviewing contracts. Our clients love that our service provides such great service to the people of Denton County and the surrounding areas. 

Our desire is to empower and educate small business owners around the globe, promoting success and growth. If you are interested in receiving more tips and strategies like this one, please subscribe below!