A business that is able to have a recurring revenue every month is a successful one. Recurring revenue streams can allow you to predict and stabilize your financial position, as well as ensure that you can hold onto your customers for longer. Any business can create recurring revenue streams, and here is a step-by-step guide on what you need to do in order to create them.
Choose the Best Products or Services
The first step you need to take is to choose products that match the requirements of a recurring revenue stream. For instance, these products and services need to be those which customers will want to invest in regularly, such as each month, rather than those which customers need only purchase on a one-time basis. To find out which products and services may be viable for your company, you should conduct market research to find out what other companies in your industry are providing their customers and how they are able to make recurring revenue.
Every industry has the potential for a recurring revenue stream, even healthcare. For instance, healthcare providers can utilize and offer chronic care management software to their patients, which they have outsourced from companies such as Chartspan. Other examples of recurring products and services include copywriting and SEO, workshops and courses, and even luxury items such as books and cosmetics.
Base Your Business on a Subscription Model
The best way to secure a regular income from your customers is to base your business on a subscription or membership model which encourages monthly payment. Subscription models have become increasingly popular in recent years due to the fact that consumers are now searching for personalized services that they can look forward to each month.
This can be in the form of a subscription box, where you give your customers a selection of previously unseen items, or a club membership, where your clientele sign up to receive a certain number of exclusive benefits, such as access to a forum or website.
Promote Your Wares
However, the biggest caveat when it comes to recurring revenue streams is you need to find a way to promote them so that paying out for a product over a long period of time seems appealing. One of the best ways to do this is through influencer marketing, where social media gurus can show their followers your wares in action and create anticipation for the products that you provide. You should also create your own social media page where you can advertise the benefits of your services, and consider contacting the press about your new scheme.
Broaden Your Income
However, while you are creating these recurring revenue streams, it is vital that you have a secondary form of income and that you are able to sustain this alongside your subscription services. This will allow customers who are only interested in one-time purchases to be able to connect with your business, giving you the extra cash you need to support yourself if your new venture fails.