If you’ve been in business for awhile or are considering starting a new business… you might have heard about the “holy grail” of business models.
That’s why today we’re sharing 7 of our favorite recurring revenue business ideas, to get you going.
Any time you create income that is predictable and reliable month-over-month, it is recurring revenue…
The following are some my favorite recurring revenue business ideas, along with examples to inspire you.
1. Recurring Membership Sites
A membership site is a place where you can deliver content, build community, and offer coaching or consulting for a month recurring fee. Only paying members can participate, and all of this is usually handled through a membership site plugin or platform.
These are great for increasing your customer base, managing your sales funnel and creating recurring revenue for your business!
A membership site adds value to your sales funnel by automating access to some of your products or services for a regular fee. Membership sites charge by the month or year, or both and offer access to routine services or information.
2. Physical Product Subscription
If you’ve ever signed up for or heard of the “box subscription” model then you know it’s a powerful thing. In fact, it’s taken many markets by storm. From shaving products like Dollar Shave Club, to clothing like Stitch Fix, and everything in between.
My favorite example of this subscription model was created by my friend Andy over at Plum Deluxe. I signed up for this monthly tea subscription program on a whim to check out what all the fuss was about… and I’m hooked!
3. SaaS – Software as a Service
SaaS, or Software as a Service, is any software that is sold on a subscription basis. Because of the monthly nature of cash-flow, SaaS programs naturally drive customer service and increase quality.
In 2012, Adobe switched their Creative Suite to a cloud subscription service. This one choice has drastically increased their annual income, provided their products to more small businesses and increased their value.
4. Earn Recurring Income With Affiliate Subscriptions
If your business doesn’t offer software, how can you take advantage of the SaaS movement?
With affiliate sales, of course!
As an affiliate, you can direct your customers towards the products that make your business run better. They’ll appreciate hearing from someone they trust, and are more likely to invest in these products to make their business run better, too.
When one of your referrals purchases the software of an SaaS program, you, as an affiliate, will receive income from the purchase, every month for as long as they are subscribers. This gives you a part of the software income, while avoiding the costs associated with developing your own software just for recurring revenue.
Not in the software recommendation space?
5. Create Service Plans or Retainers
Many businesses offer products and services that need regular renewal.
Rather than approaching a customer each time they need help with something or need more of your product, offer service packages where they pay for what they need each month.
You earn more recurring income without having to pressure people to buy again and again, and customers receive a discount on the service or regular purchase of products in exchange for the reduced hassle on your part.
5. Combination Online Membership and Physical Product Delivery
Another idea for building recurring revenue to your business, is the combination of a membership site a physical product delivered every month.
One great example of this is from The Ornament Girl, who runs the monthly subscription Ornament Girls Club.
When you sign up for her club, you can join just for the monthly ornament ebook and videos (with community!)… or you can add a physical kit that you get in the mail with all of the necessary fabric and pieces to make the ornament.
7. Online Courses Set Up As Evergreen Programs
Similar to a membership site, online courses are a little more geared toward offering specific information unique to your business.
Often, online courses on their own do not bring in recurring income. However, with a strong sales funnel, they will bring in consistent recurring revenue from new sales.
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