3 Powerful Recurring Income Strategies
With a recurring revenue business model, you’ll be able to generate a steady and reliable income every single month. Best of all, you don’t have to stick with just one format and can expand your network as you discover new demands for content.
The key is to always look forward ways to tie a product or service into a recurring revenue source.
For example, even if you decide to create a traditional membership site platform to launch your business, look for ways to feed that traffic into an upset that’s based on a subscription service model.
You always want to incorporate your funnel into a recurring income source whenever possible.
In a previous article we looked at recurring revenue streams and membership platforms
In this article, let’s look at software, physical product subscriptions and online courses.
So, let’s get cracking…
Software Products (SaaS)
SaaS stands for Software as a Service and is offered on a subscription basis.
The benefits are quite obvious to customers: in exchange for their recurring payments, they are given the ability to use the software while knowing that it is updated regularly and that they’ll gain access to prompt customer support.
From Drop Box and Adobe to mailing list providers like MailChimp and Aweber, many of the leading brands have incorporated SaaS into their businesses and for good reason: Doing so drastically increases their yearly income, while making it easier for them to provide value to their customer base.
Not ready to create your own SaaS product? No problem! You can still build recurring income in this industry by promoting useful products and services that your customer base could benefit from.
For example, perhaps you run a community focused on teaching people how to build a successful blow. You could create a training program that teaches them how to launch a successful website, while promoting the tools they need to get the job done.
This might include SaaS based mailing lists, hosting for their blog, or perhaps design and graphic tools, as well as plugins. The possibilities are endless when it comes to making money promoting a variety of recurring revenue products.
There are dozens of important tools you can easily promote within your own content to generate revenue.
And for every new customer you send their way, you’ll earn a recurring income from their ongoing payments. Win-win!
Physical Product Subscriptions
You’ve likely heard of the Dollar Shave Club as well as other subscription boxes that focus on health, fitness or cosmetics, just to name a few. These are growing in popularity every single day.
Here’s how it works:
Customers subscribe to a service and in exchange they receive a box or products every month. The products vary but are usually all in the same niche or industry.
This format works well because recipients not only look forward to receiving new products every month in the mail, but they become part of a community of active users.
Most product-based subscription sites host groups and forums where people can discuss the products and share feedback. Cosmetic lines promote their subscription boxes by asking users to upload photos of them using their products and they create tutorials based on the different cosmetics included in the monthly offering.
The downside is that creating a physical product subscription program isn’t always the easiest business to launch as it will require coming up with products and packaging as well as shipping and distribution partners, but don’t overlook the possibilities. There may be a way to simplify the program so that it works for your business.
For example, an author who self-publishes books via Amazon KDP could create a subscription program where readers can sign on to receive a new book every month via their exclusive book club.
While an author may not release a new book every month, they could easily send out some of their favorite reads, promoting other up-and-coming authors. The shipping costs would be minimal and it could even be automated through sites like Lulu.com.
How could you incorporate a physical product subscription into your business?
It’s time to put that thinking cap on and see how you could take advantage of this profitable opportunity!
Tip: You could also combine a membership program with a physical product subscription plan.
For example, you could sell access to an online training program that offers guides, tutorials and videos and provide them with a physical copy of the course via a book.
While courses don’t usually bring in recurring income on their own since many are designed on a platform that involves a student paying a one-time fee for access to the training, you can still generate consistent recurring revenue by focusing on a strong front-end sales funnel that directs students to other products and services.
For example, while your course may be a one-time charge, you could give students the option to upgrade to a monthly membership that offers tools and resources associated to the topic of the training program.
This could include additional auxiliary components such as webinars, printable downloads or additional workbooks that go beyond the scope of your course.
Start by thinking about a topic for your course, as well as the content formats you would feel comfortable creating.
This could include:
- Text-based lesson plans
- Video Tutorials
- Interviews with Experts
- Workbooks and Customized Lesson Plans
- Printables (checklists, guides, etc.)
The key is to identify an ongoing demand for help with specific problems. Your course should always focus on one main niche so you’re able to create content that is in-demand, relevant and focused.
At the same time, you don’t want to box yourself into a corner. The topic you choose should be something you can see yourself still interested in a year from now.
You don’t want the problem to be easily solvable, either. Your goal is to find a way to create a course that provides a workable system that addresses the issues that people are struggling with.
By purchasing access to your course, they are given the knowledge needed to accomplish specific goals.
Most of the top-selling courses focus on one main subject and then they expand their program by allowing students to either purchase additional access to upgrades or by offering additional resources after someone has graduated from the course.
Don’t let anything stand in your way! Even if you aren’t an expert on the topic, chances are you still have something worthy of teaching and that people will pay money for.
Keep in mind that for your membership program to be successful, you need to come up with a strong hook.
A hook reels you in. It sets your program apart. It works at differentiating your program from your competitors and tells potential subscribers why they benefit from signing up for your program. It’s visceral and compelling.
Evaluate your membership program’s strengths and unique benefits.
- How does it stand out?
- What is the greatest asset you offer members?
- How is it different?
- What will someone learn or improve by being a part of it?
Your task of the day:
Step 1: Identify an ongoing problem in your niche where people are actively seeking guidance, training and ultimately, a solution.
Step 2: Create a list of topics that you should cover in your course based on those common questions. Then, decide on the various formats you plan to use (video, printables, workbooks, etc.).
Step 3: Next, go through that list and narrow your focus so that you are targeting a specific segment of your market.
Need help identifying a problem in your niche or coming up with a topic for your course?
Here are a few ways to uncover possibilities:
Send an email out to your mailing list that asks what your readers need help with. You can either set the email so they reply with their own feedback, or choose 3-4 topics and create a survey that asks them to choose only one.
Discover ideas for your course by searching popular blogs and Facebook groups in your niche. See what people are talking about and what questions are commonly asked.
Search Reddit sub-threads as well as Q&A sites like Quora for popular questions and ongoing discussions. You want your course to be based on an evergreen, common problem in your market.
Search platforms like Udemy.com and Teachable.com to see what courses are selling and what kind of training is being offered.
Sites like Teachable will show you a breakdown of all lesson plans so you can get a feel for the scope of the training and identify what could be missing. Then, include coverage in your own course to stand out in your market.
Tip: Creating a training program is easy with sites like https://www.Teachable.com because you aren’t required to build your own website or learn HTML.
All you have to do is enter in your content or link to your videos and Teachable will compile your course so that people can move through it at their own pace while keeping track of their progress.
If you want to know more about creating a profitable online course, check out the featured resource below for a free report; download, read it and take action 😊