In this article we’re going to talk about what recurring revenue streams is all about and why you should work towards incorporating one into your business. Passive income is a goal that all business owners should aspire to bring into their business.
To start, recurring revenue will help you catapult your business in terms of outreach and income.
Better yet, you’ll be able to predict your monthly income in advance so you can better budget and manage your business.
Even businesses like spas, car washes and laundromats often employ a membership program of some kind to build customer loyalty and keep people coming back again and again.
Think about the different ways that you could implement a recurring revenue stream into your business. Chances are, there’s a way to do it
that will not only add tremendous value to your business but will demonstrate your desire to provide exceptional value and savings to your existing customer base.
Here are a few ideas to help you get started:
You could create a series of content in various formats and place it behind a paywall.
Then, when someone wants to gain access to your material, they would pay a monthly subscription for direct access to your content.
Much like brick-and-mortar businesses have done with customer loyalty programs and pay-in-advance for added savings cards, you could create a service plan based on your customers’ needs.
They would commit in advance to a set time frame, or a set amount of service time/hours/uses and in turn, they would save money.
Much like a course or membership website where you are providing access to training and high-value content on a subscription basis, you could create a content cycle that distributes information products in a variety of ways including through a podcast, private YouTube videos or Webinars.
These are just 3 quick and easy ways you could begin to incorporate recurring revenue streams into your business.
How many other ways can you think of?
Next, let’s look at how you can take advantage of one powerful online community that puts you in direct contact with an ever-growing fan base. This could be the fastest way of setting up a recurring income stream, even if you’ve never done it before.
Have you ever heard of Patreon? It’s a platform that allows fans to support their favourite creators through monthly sponsorships and donations.
Creators assign value to each membership level which typically provides added bonuses and access based on the higher price point.
Patreon has been responsible for launching countless businesses and increasing overall exposure and engagement for entrepreneurs from all walks of life.
From bloggers & vloggers to video game streamers, people are generating thousands of dollars a month from this one powerful platform.
In fact, Easy Allies, a team that primarily focuses on creating video game content (streams, tutorials, and walk-throughs) has over 9,000 subscribed patrons, earning them over $50,000 every single month!
It’s time to start thinking about how Patreon could work with your business!
Further, donations aren’t the only way of monetizing Patreon. You can also set up a subscription-based service and charge a monthly membership fee for access to it, much like a traditional membership site.
So, head on over and take some time to explore the different options available.
Here’s the link: https://www.Patreon.com
Next, let’s look at a clever way of positioning a subscription site so that
you’re able to skyrocket signups quickly, all by using the power of psychology.
If you’re thinking about launching a subscription website or opening the doors to a new course to build your first recurring revenue stream, you’ll want to take a step back and analyze your sales copy.
Because one simple change could skyrocket your income and flood your subscription site with more members than you ever thought possible.
It starts with the power of exclusivity.
People want what they can’t have, right? They also want what other people have.
This is why so many copywriters use a combination of scarcity tactics and highlighting that access is exclusive and available only to paying members.
Not only will this strategy help you maximize sales, but it will add immediate value to your subscription service.
Consider the different ways you can incorporate exclusivity into your recurring revenue streams.
* Can you “open the doors” to an offer for only a limited amount of time to maximize conversion rates?
You can always re-open later as long as you don’t offer a lower price.
* Are you able to present your service as a premium subscription program while highlighting the benefits of joining?
* Can you model your service after the Prime model? This is where you give away goodies and perks in exchange for being a member.
Think about it.
Anyway, next let’s take a look at sequential revenue. This is a recurring
revenue model that has been responsible for adding thousands of dollars a month to many online businesses and it’s easy to set up.
OK, let’s look at the power of sequential revenue.
In case you aren’t sure what this means, it’s simply creating recurring income by encouraging existing customers and subscribers to consistently upgrade to new products and services to maximize your income while providing your customer base with additional options.
Sequential revenue streams are used by many of top corporations online, including Microsoft and Oracle, where their customers can upgrade their software products to unlock additional features.
With sequential revenue streams, you are keeping your customers moving through your funnel.
Each time they upgrade they are given access to new options and features which expands their opportunities.
You’ve also seen this in action when it comes to mailing list and autoresponder providers.
With a service like that, you are always upgrading as your business grows.
Think about how you could incorporate sequential revenue into your existing or new business. Are there ways you could provide upgrade options to customers?
Nearly every business can benefit from implementing sequential revenue streams into their business, and regardless of your niche or industry, there is likely a way to take advantage of this powerful income model.
The key is to highlight the additional benefits your customers receive when they upgrade. You want to be clear about what you are offering and how they’ll be given additional options that aren’t unavailable in their current plan.
Courses are a great product to put into your membership platform and 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 😊
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.
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…
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.
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!
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.
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:
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.
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.
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.
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 😊
