Have you added a recurring income stream to your Small Business? Are you selling subscriptions, service plans or other passive income as part of your business model? Creating a recurring income stream is a powerful way to increase profits as well as creating a more lasting relationship with your customers.
What are some typical recurring income streams?
- Service plans
- Subscriptions – physical products or content
- Affiliate revenue
- Online Courses
- Recurring upgrades
Service plans – if you are selling a product that may require service to keep it functioning, you should be selling extended warranties and service plans. Sell your own plan or sell a third party plan (Square Trade) – but sell something that adds value to your product line.
Subscriptions – can you add a subscription model to your business? Think about your product or service offerings and your current pricing – is there a monthly or annual subscription model that you could offer? Think Netflix – use the automatic recurring model to normalize your monthly revenue. You can be selling physical products with an automatic delivery schedule or services that renew each month.
Memberships – does your website offer a members only area with valuable content? Can you offer discounted prices for your services to paying members? Look at the movie business – you see both theatre chains and independent companies really pushing memberships.
Affiliate revenue – do you generate good traffic on your company website? Create an affiliate account with affiliate aggregators like Commission Junction, Amazon or others to create recurring revenue.
Retainers – Do you offer services that your customers may want quick access to your attention or expertise? Charging a monthly retainer can be a great way to monetize this
Online Courses – Can you create an online course related to your business? I’m sure you can. Think about all your own knowledge or your employees and consider creating an online course that you can monetize. Most of you are experts in something – people will pay for value – think about sharing your knowledge – entice with some free content and some paid.
Recurring Upgrades – do you sell a product that has an upgrade cycle? Are newer models coming out frequently that have features your customers want? What about a program that allows them to automatically upgrade on a regular basis? Apple and companies like Verizon do it with phones, can you use that model and apply it to your products?
Donations – is your Small Business a cause or non-profit? Are you using the Paypal donate button on your website or Patreon to setup recurring donations? You should be.
We would love to hear how you are using Recurring Income streams to grow your business and keep connecting with your customers. Share your story at the Small Business Support Group
- 00:00:00 Small Business Show #212 for Wednesday, February 27, 2019
- 00:01:55 Recurring Revenue, Mailbox Money,
- 00:02:44 Safe by HUB6
- 00:03:56 Recurring revenue is relationship-based
- 00:05:01 Third-party warranty companies
- 00:07:34 Subscriptions
- 00:11:59 SPONSOR: TextExpander.com/podcast gets you 20% off your first year
- 00:14:08 SPONSOR: Abby Connect. Get $95 off your first bill at AbbyConnect.com/sbs
- 00:16:34 Memberships
- 00:19:28 Costco’s profits? Membership value!
- 00:21:17 Use recurring revenue to stop selling to your customers
- 00:26:58 Additional Content for Subscribers
- 00:29:39 Thinking about Donations as Membership
- 00:33:26 Recurring upgrades
- 00:35:08 SBS 212 Outtro