HOW TO CREATE A RECURRING REVENUE MODEL FOR YOUR BUSINESS
Let’s be real, going into business can be a bit scary – and one of the main reasons I see companies fail is that they haven’t succeeded at creating a recurring revenue model for their business.
Think about it, part of the reason why people love the security of being an employee – is the knowledge of having that steady income coming in month after month. Not having that certainty is usually one of the main reasons why people are too afraid to launch their own business.
But what if I told you that you can have all that and more security x 10000 by planning your business in a clear way from day one? In order to create a clear budget and plan a steady expansion and growth, you need to masterfully orchestrate your customer journey so that your clients will be able to stay invested in your brand for the long term. Thus creating that steady cash flow honey!!
When creating BLOOM 3 years ago, the very structure of the company was based around providing a service that would be needed on a long term basis. By doing so, I ensured that there would be a steady cash-flow and this allowed me to know exactly what the revenue projections were and exactly what I needed to spend on. Without this, I would have been stressed thinking where my next client would be coming from!
Here are some examples of recurring revenue streams that can potentially leverage your existing business! Maybe you are providing a service right now but want to do a one-to-many scenario, or perhaps you sell products and wish to create a secondary revenue stream by creating a membership model for your brand. Let’s dive in.
1. LONG TERM MONTHLY RETAINER SERVICES
Bloom is a perfect example of this type of model when it comes to our Agency. We provide long term services for entrepreneurs to assist them with marketing + virtual assistant support that they need on a weekly and monthly basis. This is a great model for any type of service provider that provides a solution that a client needs on a recurring basis. So if you haven’t developed this type of recurring relationship with your clients, why not think about a service your clients need on a regular basis – and create an offer to fill that need.
2. MASTERMIND GROUPS – GROUP CONTINUAL SERVICES
Another idea is to create a mastermind group of clients that are die-hards and offer them a recurring service that gives them a more intimate setting of learning from you with perhaps monthly meet-ups that are consistent and provide a lot of value for them. A great example of this would be a coach or psychologist or even an accountant! Being able to guide your clients to give them hands-on knowledge on a recurring basis in a group setting. You are building loyalty, community and recurring revenue.
3. MEMBERSHIPS – DIGITAL PRODUCTS + COURSES
Any business that has the ability to provide a membership-style experience should consider this type of income stream in their company. Are you an expert at something that you can teach others? Well, create a course, or a recurring source of education that you can share with your community on a monthly basis. Or can you sell something (digital or physical) new on a monthly basis and provide these to your loyal customers every month? A great example of this is a graphic designer providing their members with new editable and customizable templates on a monthly basis! Helping to make their client’s lives easier with beautifully designed tools for their businesses. Having a membership style model (or revenue stream) is a great way to create consistency and recurring income.
4. LADDER STYLE JOURNEY
Another way to look at recurring revenue, is to see your existing clients as lifetime customers and find ways to serve them as long as possible. For example, a client comes in for an introductory offer at a lower price point, you provide them with incredible value and you’ve developed the PERFECT next level solution that that same customer would need as soon as they are ready to level up. And you keep offering more after that. This creates a customer journey that far exceeds the single offer purchase and you can bet that if you are targeting your ideal customers well enough, that most of your new clients will stick around for the long term and provide that consistent revenue stream in your business.
At the end of the day, it’s 100x harder to acquire a new customer than it is to keep an existing client long term. This is why building a business with a clear strategy to retain your existing clients is the only way to scale and grow your brand. Having a recurring revenue model in place means you can easily focus on growing and expanding your business, without worrying about constantly finding new customers and making new sales from scratch.
It’s also an amazing opportunity to create strong relationships with your clients and turn them into loyal customers for your business. Hoping this helped you to start thinking about different creative ways you can implement a recurring revenue model into your business!
xo The Bloom Team