“There’s usually only one thing better than revenue in your digital business — recurring revenue.
Recurring revenue helps to smooth any uncertainty and provide your business with predictable income from month-to-month. This is helpful if you’re trying to prepare forecasts and make major business decisions. It’s also a great boost if you’re trying to put a price on your business or make it more attractive for acquisition.
Many digital businesses don’t start out this way though, often choosing to sell products or services on a one-off basis, or even making revenue through ads or affiliate marketing.
Over 226 million adults in the U.S. alone take advantage of online subscription models, while nearly half of U.S. businesses have adopted or are planning to adopt a recurring revenue model.
In short, recurring revenue models do represent big opportunities for digital business owners, but it’s always good to take a balanced approach and look at the pros and cons. We’re looking at three of the most common for digital business: subscription ecommerce, SaaS and productized services.”
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Is A Recurring Revenue Model Right For Your Digital Business?
Photo By Al Q