Have you added a recurring source of income to your small business? Do you sell subscriptions, service plans or other passive income as part of your business model? Creating a recurring stream of income is a powerful way to increase bottom line and build a more lasting relationship with your customers.
What are some typical recurring revenue streams?
- Service plans
- Subscriptions – physical products or content
- Affiliate Income
- Online courses
- Recurring upgrades
Service plans – If you are selling a product that may require maintenance to work, consider selling extended warranties and service plans. Sell your own plan or sell a third-party plan (Square Trade) – but sell something that adds value to your product line.
Subscriptions – Can you add a subscription model to your company? Think about your product or service offerings and your current prices – is there a monthly or annual subscription model that you could offer? Think Netflix – use the auto-recurring model to normalize your monthly sales. You can sell physical products with an automatic delivery schedule or services that renew every month.
Memberships – Does your website have a members area with valuable content? Can you offer paying members discounted prices for your services? Look at the movie business – you can see that both theater chains and independent companies are really driving membership.
Affiliate Income – Are you generating good traffic on your company website? Create an affiliate account with affiliate aggregators like Commission Junction, Amazon, or others for recurring income.
Holder – Do you offer services where your customers may want quick access to your attention or expertise? Topping up a monthly retainer can be a great way to monetize this
Online courses – Can you create an online course about your company? I’m sure you can. Think of all of your knowledge, or of your staff, and consider creating an online course that can make you money. Most of you are experts at something – people will pay for the value – remember to share your knowledge – entice you with some free and other paid content.
Recurring upgrades – are you selling a product that has an upgrade cycle? Do newer models often come out that have features that your customers want? How about a program that allows you to update automatically on a regular basis? Apple and companies like Verizon are doing it with phones. Can you use this model and apply it to your products?
donate – Is your small business purpose-built or not for profit? Do you use the Paypal donate button on your website or Patreon to set up recurring donations? You should be
We’d love to hear how you use recurring income to grow your business and keep connected with your customers. Share your story in Small business support group