BEFORE you get ready to sell, create the most value possible by leveraging recurring revenue. Ready to learn how to create high-value in your business through recurring revenue?
Creating recurring revenue in your business provides assurance of future sales, lowers the risk for a potential buyer, and raises your business’ value.
Let’s dive in and learn exactly what recurring revenue is and different ways to consider using it to create high-value in your business.
What Is Recurring Revenue?
Recurring revenue is income that comes in during regular intervals like monthly or annually and is expected to continue into the future.
This can be one of the most powerful ways to add value to your business because the income is typically stable and can be relied on with a degree of certainty.
Why Use Recurring Revenue to Create Value?
A recurring revenue model helps establish your company’s Customer Lifetime Value (CLV) through gathered data about the behavior and spending habits of your customers.
With this data it’s easier to estimate your business’ value and plan the future in a more reliable way.
There are several ways to create recurring revenue in your business. However, based on your target market, one may work better than another.
Take time to consider the following options so you can decide which one makes the most sense for you.
#1 Memberships for Service-Based Businesses
A membership is a great way to nurture your target market with content, an engaging community, and touch points like coaching and consulting.
Boss Babe is a great example of how this could work.
They’ve created multiple recurring revenue streams by selling education based memberships and built a community for business women to network and support each other.
For a monthly fee you get access to their masterclasses, weekly live training, and access to their community.
#2 Subscriptions for Product-Based Businesses
Subscriptions are a great way to create recurring revenue for product-based businesses.
Although you may have repeat customers that keep you ‘in the green’ each month, your revenue stream is considered risky because you can’t bank on your customers’ loyalty.
They may choose to shop somewhere else at any moment.
However, by creating a product-based subscription model – like subscription boxes for instance – you can build a more stable revenue stream by charging customers at scheduled intervals.
#3 Sell Info Products
The info product industry is projected to grow from its current worth of $9.9B to over $59B by 2027. This means it may be the BEST option for you to build and scale a recurring revenue stream in your business.
Info products are usually detailed explanations of how something works, delivered through videos, lifestream classes, or digital webinars.
This course is designed for business owners who want help selling for top dollar so they can enjoy an incredible financial future for themselves and their family.
So What’s Next?
Once you decide which recurring revenue model is best for your business, it’s time to implement. However, it’s easier said than done if you don’t have the support you need.
Ready to learn how to create high-value in your business through recurring revenue?
To create value and build a sellable business, remember that creating a business that runs on autopilot is essentiel and recurring revenue are one strategy you can create.
What about your business strategy? Any recurring revenue?
Can’t wait to learn about it and share your offer to my audience! Comment below and share your offer.