Recurring revenue. Monthly revenue. Passive income. Continuity. Subscriptions. All of these labels represent the same goal – to form a foundation of business income that arrives every month.
But no matter what you call it, it feels great to get paid each month without having to make a single new sale.
The merits of a recurring income approach to your business have inspired entire industries.
Here are a few of the benefits:
- A baseline of income that arrives in your bank account before you’ve won a single new customer.
- Customers on subscription models stay loyal longer.
- Recurring customers have higher lifetime values.
- Recurring customers are more likely to make referrals.
- Subscriptions serve customers better by saving them time and reducing the effort required to buy.
And make no mistake, nearly every business is capable of creating a line of products or services that can be purchased on a subscription basis. Monthly payment models can be used to sell everything from software to smoothies, coffee to clothes, healthcare services to car care.