6 Repeat Business Strategies to Rock 2023 |
What does Netflix, Microsoft, your gas company and the local cafe all have something in common?
All of them are recurring business models that generate revenue. Recurring businesses. As in, people continue to pay them every month.
Contrary to those who struggle to win clients and business every month, repeat-income businesses are often able to save 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 for the future.
There's something wonderful about the concept of repeat business. When you build something that clients keep returning to, or are willing to invest in each month or every year, you've got a formula to make money.
In this post in this article, we'll offer the reader some ideas for businesses that have recurring revenue ideas. These repeat-based business concepts will help you design an enterprise that will keep clients coming back month after month and can be extremely lucrative!
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The article...
5. Services for subscription (product-led)
What is recurring income?
Recurring revenue is when customers pay you again every month or years.
It could be a subscription-based business or membership company, which usually require regular payment. Your Netflix account will pay Netflix regular revenue even if you share the password with your cousin who lives in Idaho.
Perhaps, it's just be a sign that you've created a company which customers come back to - such as Starbucks. These types of repeat purchase businesses also create regular revenue. In addition, the more frequently clients return to purchase from them, the better value the company.
The benefits of recurring revenue
Recurring revenue forms the basis of some of the top-performing firms across the globe. When we started this article, we talked about businesses like Microsoft. In the past, you used to buy Microsoft Office in a box. You paid for it once and installed the CD-ROM on your computer (are you sinning here? ).
You probably now download it and pay a yearly fee. However, unlike the CD-ROM for $150 that you probably used every five years, and shared with all of your acquaintances in turn, by turning their program into an ongoing revenue stream - that is, you pay $100 each year , Microsoft could earn even more.
It's one of the main benefits from a business that reinvests in its revenue. There are many more benefits:
- Lower CPA. Any business needs to be thinking about their CPA, or cost per acquiring a customer. Companies that have recurring revenue do not need to keep reacquiring the same clients.
- The ability to scale. Recurring revenue offers the ultimate scalability. If you can maintain your churn percentage low, you keep adding new customers to your current customer base. It's growth for your business!
- freedom. A repeating revenue company can provide you a solid financial foundation which allows you to deliver a great item or service.
6 Repeat business ideas
1. Community
Here at Mighty we assist people to build one of the greatest recurring revenue businesses out there: community .
Membership communities just work. In the realm of human interaction, this is because people all seek connections and meaning. When we join in a community online, we can master something important to us as well as meet other people who we feel passionate about.
However, the business aspect of community is pretty dang awesome too.
Imagine starting a company you can begin with nothing and scale to $100,000 every month. We've seen it.
Community memberships can be an extremely profitable recurring revenue venture.
In order to start a community You'll need to determine an Ideal Member as well as a Goal. Select a good community-building platform such as Mighty that will let you build and host your community, adding your own brand and everything you have to sell. You're now ready to go racing.
Based on our studies, we've seen that communities which charge members for membership perform better. They have more engaged members as well as are more profitable.
This happens because the public values what they pay for.
Communities with recurring revenue business models:
2. Retainers plans
Another type of business that is recurring is a retainer-based business. This is often seen with companies that advise other companies, and probably the most well-known is using lawyers.
A business that is based on a retainer means that a company will pay the company a certain monthly amount to offer specific services. If it's services that run continuously, then you've established an underlying source of revenue that is recurring.
Retainer businesses are often overlooked as viable business opportunities, but they can be really lucrative. If your business provides digital marketing solutions to 10 businesses that charge them every $5,000 a month, then you are an agency that earns 50k per month!
You get to focus on the things you excel at, and build a business around the expertise you have developed. The company reaps the benefits of your business's expertise, without having to hire someone to perform this task.
A few examples of retainer-based revenue businesses:
- Lawyers
- Bookkeeping
- The digital marketing
- Create content
- Financial advisor
3. SaaS
One of the most sexiest businesses that generate recurring revenue is SaaS which is software as an service.
SaaS businesses provide their customers with a piece of software to make their lives easier. As a result, the user pays a regular fee for the use of that program.
We have discussed the case that we discussed of Microsoft Office above. It is true that Microsoft works using an 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 in fact, a SaaS company. We give businesses and creators the ability to develop communities and courses, as well as content and even commerce. In the return, we pay our users the monthly cost in one lump sum.
In the past, that you had to be able to code to create an SaaS company. With the amount of no codes and white-label alternatives available, it's feasible to have an SaaS business up and running - even on a bootstrap budget
Illustrations of SaaS companies that recur
- Dropbox
- Microsoft
- Evernote
- QuickBooks
- Adobe
- Mighty
4. Local businesses
Transitioning from SaaS companies that reach around the globe, let's chat about the local version of one of our idea business models Local membership businesses.
Yes, if you glance around your town you'll see many local membership businesses. The most obvious one is the gym. you pay monthly to access their facilities.
You may have bumped up against recurring revenue businesses that offer yoga studios, dance classes, children's sports or music lessons. Every one of these companies offers a product or a service that you pay for regularly.
Take a look at the local cafe, masseuse, or hairdresser for repeat purchase businesses. They do not operate under the basis of a membership however, customers come to them again and often.
If you want to start an established local business review what customers in your town pay for. What's missing? And how can you create an enterprise that customers will come back to time and time
Local repeat businesses:
- Gym
- Yoga studio
- Bouldering cave
- Play Cafe
- Hair salon
- Café shop
5. Services for subscription (product-led)
Subscription service is another possibility for recurring revenue business ideas. We pay for a lot of premium subscription services. take a look at Netflix or Disney +.
However, there are plenty of subscription businesses doing well in a lesser level. The rise of Substack has led to an increase of paid newsletters, and the email service Convertkit joined the bandwagon as well.
Perhaps 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 whiskey to razors, food , books and even underwear, there's a wide range of choices
Some examples of subscription-based revenue businesses:
- Wine club
- Artsnacks mix
- book of the Month
- Hello Fresh
6. Model of licensing
Licensing is yet another one of the recurring revenue business ideas that's not as well known. In a business that licenses you have some kind of intellectual property or patent. Customers then pay revenue to get access to the.
Last year, when Taylor Swift famously re-recorded her first album, she was doing it to get around one simple issue: somebody else owned her music. Her label had the right to license the songs and made profits on the entire album.
It's not the same as licensing, but they are very closely linked. When you purchase the rights to a McDonald's restaurant, you're paying for the right to use their brand name. In return, the head office gets to tell the restaurant how to decorate it and which cups to choose.
But you get a proven business name with successful track records, and instant branding recognition whenever eager customers drive through.
McDonald's The head office, not your neighborhood restaurant - is based on a licensing model.
If you want to start an enterprise of licensing then you must own an intellectual property or brand. When you have it this, it is possible to get other companies to pay you to use the.
Are you ready to begin?
Whatever model for recurring revenue that you've come up with We hope that this post has helped. There's plenty of repeat-based business concepts out in the world, as well as a lot of proven models. Make sure you are playing the right cards and you could be the next!
If you're developing the business of a subscription or membership make sure you build with Mighty! Our robust software for culture lets you mix communities, content, classes as well as commerce. And with our Spaces with flexible options, you can mix in live streaming and live events, discussions forums, member profiles chat and messaging as well as more!
You can charge in various currencies, or even monetize with token-gating. We've also got an application for all devices, or you can even choose to build your own white label app.
Creators and business owners across all kinds have used our software's power to create amazing businesses that recur regularly, including Adriene Mishler - YouTube's best-known yoga instructor Marisa Peer, and the Sadie Robertson Huff.
If you're interested in seeing how you can create, come try it out! It's free to try for 14 days. No need for a credit card.