6 Repeat Business Strategies to Hit 2023 |
What does Netflix, Microsoft, your gas company, and the coffee shop in your neighborhood all have in common?
All of them are recurring income businesses. Businesses that are repeated. That is, they continue to pay them each month.
Unlike the poor suckers who are fighting to win clients and business each month, repeat revenue businesses can often spend less energy and time on clients and can focus more on delivering value to the clients they already have. The recurring revenue model provides regular income and allows you to plan to the next year.
There's something awesome about the concept of repeat business. When you build something that people keep coming back to, or even willing to spend every month or year then you've got the formula to make money.
In this post in this article, we'll offer you some business concepts. These repeat-based business concepts will help you design an enterprise that will keep clients coming back month after month and is super profitable!
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5. Services for subscription (product-led)
What is recurring income?
Recurring revenue is where customers are paid again every month or years.
This could be a subscription business or a membership-based business. These generally require regular monthly payments. Your Netflix account is a source of Netflix every month, even if you shared the password with a cousin in Idaho.
It could also mean you've built a business that your customers continue to return to, such as Starbucks. This kind of repeat purchases also generate the possibility of recurring income. In addition, the more frequently clients return and return, the greater the value of the company.
The benefits of recurring revenue
The recurring revenue model is at the heart for some of the most successful businesses around the globe. In the introduction to this post, we discussed about businesses similar to Microsoft. At the time there was a time when you could purchase Microsoft Office in a box. You paid for it once and installed the CD-ROM on your PC (are you sinning here? ).
Then, you'll probably download it and pay an annual cost. However, unlike the CD-ROM for $150 that you probably used at least once every 5 years, and shared with all of your acquaintances in turn, by turning their program into an ongoing revenue stream - where you pay $100 a every year Microsoft can make even more.
That's why increased revenue is one of the main benefits of a recurring revenue business. These are a few more:
- Lower CPA. Any business needs to think about its CPA (cost per acquisition of a client. Businesses that earn recurring revenue don't have to keep reacquiring the same clients.
- Its scalability. Recurring revenue provides an unbeatable capacity for scaling. If you manage to keep your churn rate relatively minimal, you can continue adding new customers to your current customers. That's business growth!
- Freedom. A recurring revenue business can give an excellent financial base that frees you up to concentrate on providing a great item or service.
6 Ideas for repeat business
1. Community
We are Mighty We help our clients develop one of the best companies that generate recurring revenue: community .
The membership communities are a good thing. At a human level it is because humans all want connections and meaning. By joining an online group, we will learn something that is important to us and find people we care about.
The business side of community is pretty dang awesome too.
Imagine that you have a business that you begin with zero and then grow to 100,000 every month. We've witnessed it.
Community memberships can be an effective recurring revenue source.
To start a community You'll need to determine an Ideal Member as well as a Purpose. Choose a community platform like Mighty that allows you to create and manage your community. Add your personal brand and everything you require to market. Then, you're ready to go racing.
From our research, we've seen that communities that charge for membership do better. They are more active members and have higher success.
This happens because people value what they pay for.
Community examples as recurring revenue businesses:
2. Retainers plans
Another recurring revenue business is one that relies on retainers. These are typically associated with businesses that work advising other companies, and probably most famously using lawyers.
A retainer-based business means that a company will pay your business a set monthly amount to offer a certain type of services. When it's services that continue to be provided, you've created an underlying source of revenue that is recurring.
Businesses that retain customers are usually not thought of as viable business opportunities however, they could be very profitable. If your business provides digital marketing services to 10 companies, charging them each $5,000 a month, you've got an agency earning 50k each month!
It is possible to concentrate on what you do well and then build a company around it. A company gets the benefit of your business's expertise, without the need to employ someone to perform this task.
Recurring revenue businesses:
- Lawyers
- Bookkeeping
- Digital marketing
- Content creation
- Financial advisor
3. SaaS
A single of the sexiest recurring revenue business models is what's called SaaS which is software as a service.
SaaS companies provide their clients with a piece of software to make their lives simpler. As a result, the user pays a regular fee to access the software.
The example was discussed in the context in the case of Microsoft Office above. Technically, that part of Microsoft works using the SaaS model. Consider companies such as QuickBooks, Adobe, Evernote, Zoom, and Dropbox. These are all companies that provide software as a service.
In fact, it's an SaaS business. We provide creators and businesses with the software to build community classes, online content as well as commerce. In exchange, we charge our customers the monthly cost in one lump sum.
There was a time when you'd have to know how to program to start a SaaS company. In the absence of codes and white-label alternatives that are available, it's doable to get the SaaS firm operating - even with a small bootstrap budget
Exemples of SaaS recurring revenue businesses:
- Dropbox
- Microsoft
- Evernote
- QuickBooks
- Adobe
- Mighty
4. Local businesses
Moving from SaaS businesses that span the globe, let's chat about the local version of one of our business concepts Local membership businesses.
If you take a look around your town, you will see various local business that are based on membership. The most obvious one is the gym. members pay per month to use their facilities.
There are many ways to get against businesses that recur that offer yoga studios, dance classes, children's sports or even music classes. Each of these businesses provides either a product or service, and you usually pay regular fees.
Take a look at the local cafe, masseuse, or hairdresser for repeat purchase businesses. They do not operate under a membership model and customers are able to come to them again and again.
If you'd like to begin a local repeat business, look at what the people within your community pay for. What's missing? What can you do to create a business that people will return to repeatedly and time
Exemples of local business that have a history of repeat customers:
- Gym
- Yoga studio
- Bouldering Cave
- Play Cafe
- Hair salon
- Café shop
5. Services for subscription (product-led)
Subscription services can be another option to come up with recurring revenue business concepts. The majority of us pay for of premium subscription services. take a look at Netflix or Disney +.
But there are a lot of subscription companies that are doing very well at a smaller scale. The rise of Substack has led to an increase of paid newsletters. The email service Convertkit joined the bandwagon too.
Or how about an online subscription that is based on a product? If you've ever paid a wine-of-the-month club, you've tried one of those. From razors to whiskey to books, food and underwear, there's plenty of choices
A few examples of subscription-based revenue businesses:
- Wine club
- Artsnacks mix
- book of the month
- Hello Fresh
6. Model of licensing
Licenses are another of those recurring revenue business concepts that aren't as widely known. In a business that licenses, you own some type of intellectual property or patent. Your customers then pay recurring revenue to get access to the.
Last year during the time that Taylor Swift famously re-recorded her earlier album, she was doing so to avoid a single problem: someone else owned her music. Her label owned the right to license her songs, and she was earning every penny from it.
Franchising is not identical to licensing, but it's closely related. If you buy a McDonald's restaurant, you are paying for the right to use their name. In return, the corporate headquarters is able to instruct the customer how to decorate their restaurant and the type of cup you should use.
You also get a proven brand name that has successful track records, and instant brand recognition when your eager customers drive through.
McDonald's headquarters - which is the main office, not your local restaurant - is based on a licensing model.
If you're looking to establish your own licensing company it is necessary to have any kind of intellectual property or brand. Once you do, you can get others to purchase it for use. it.
Are you ready to get started?
Whatever recurring revenue business model that you've come up with This article hopefully has helped. There's a wealth of repeat business ideas out in the world, as well as a lot of profitable models. Make sure you are playing the right cards and you could be the next!
If you're in the process of building an online subscription or membership business make sure you build with Mighty! Our powerful software platform for cultural content allows you to mix communities, content, classes, and commerce. And with our flexible Spaces allows you to incorporate live streaming and live events, discussions forums, profiles of members Chat and messaging and more!
The app allows you to make payments in one of the 135 currencies available or earn using token-gating. And we've got a great app for every device, or you can even choose to build your own white label application.
Creators and business owners from all walks of life have utilized our powerful program to develop incredible businesses with recurring revenue such as Adriene Mishler - YouTube's best-known yoga teacher, Marisa Peer and Sadie Robertson Huff.
If you'd like to test how you can create Try it yourself! It's free to try for 14 days with no credit card needed.