In a previous article, I shared the first four of six compelling reasons to immediately produce a recurring revenue product as part of your product suite.

Continue reading below to discover the next two reasons, as well as one of the most efficient, yet effective, recurring products you can offer your customers and clients.

5 – You have more time to maximize client value and increase retention.

This is related to #4, above. When you can spend less time and money to acquire new leads and convert them to customers, it means you have more time and money to create an amazing experience for your current customers.

This also helps reduce churn, which means you spend even less time acquiring new customers.

The key is to go beyond expectations.

Think about it. When you go to a grocery store, you expect quality fresh produce and a decent selection of brands and food types. When you don’t get that, you complain.

If you walk in, however, and someone greets you at the door and asks you what you are looking for, and then they offer to compare prices for you, and they push your cart around the store for you… Well, that is an entirely different experience.

So always give your customers what they expect. And with the extra time and money available to you when you use the recurring revenue model, make sure you also give them a WOW experience.

6 – You can focus on outcomes, instead of being a commodity.

Commodities can be bought and sold. You can measure them and count their features.

Commodities are such things as diamonds, air conditioners, cars, etc. You can measure how many they are, and sometimes how much energy they use.

Instead, with a recurring income product or service, you can market by emphasizing the outcome your customers are looking for.

You can talk about how they will feel when they use the gym as often as they want; or the peace of mind it will give them to know that someone is always on call if their washing machine breaks down; or how working with you every month as a business coach will turn their business – and life – around.

You are not held to providing your service or product for a certain number of hours. This means your customer feels more confident turning to you when they really need to, and you feel secure with money coming in every month. It’s a real win/win for both of you!

The real result: Relationship

While all this is terrific news for you and for your customers, even better is the end result of your recurring income service or product: the relationship you build with each individual in your community.

The ongoing “touches” you get to have with your customers and clients increase the opportunities for you to get to know them, and for them to get to know you. And, of course, the more you get to know each other, the more you will like each other. And trust comes next, after “knowing” and “liking”.

Never, ever underestimate the power of presence – being available to someone regularly – to build the relationship. And in this case, the business.

A great model for automatic monthly income – without a lot of effort

If you are someone who has a list of subscribers – people who have raised their hand and given you permission to show up in their email inbox – you now have available to you the best way to increase both their relationship with you, and, naturally following on that, their expected results.

How do you improve that relationship and their results?

By giving them something concrete to learn and apply each month.

It’s possible to create a membership site and continually update it. That is, indeed, a valuable service and it helps boost relationships.

But if you don’t have the time – nor the inclination – to run a membership program, a simpler, yet still highly effective recurring revenue offer is a monthly subscription newsletter.

You can certainly write and produce this newsletter yourself, or you can let my company do this for you.

All you need to do is allow one of us to interview you – or your team members – once a month for 30-40 minutes. We take over from there.

We get the recording transcribed, “massage” the content so it sounds JUST like you, set it up in a nice-looking template, then send it to the printer/distributor for you. (Printing and shipping costs are obviously separate from our content management fee.)

That’s it!

Of course, you do need to sell subscriptions to your list, but it doesn’t take very many sales before you’ve covered all your costs, and the rest is pure profit. All while you are providing valuable, relevant, engaging content that makes a difference in the lives of your customers.

I know, you may say, “Why would I mail a print newsletter these days??”

The truth is, people have stopped paying attention to their email inboxes. Lots of emails end up in the wrong tab – or in spam – and they never even get opened (what is your personal open rate, after all)?

On the other hand, how much of your “snail mail” do YOU open, especially when you’ve paid for it? And don’t you think it becomes easy to include an insert to other services and products you may want to offer as well?

If you are ready to receive automatic monthly income without a lot of time and effort, please apply here for a consultation. We are ready to help you increase your Impact, Influence, and Income through the power of engaging, inspiring content!

Do you have a “hole” in your marketing funnel that is leaking leads and sales? Take our quiz and find out!

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Netflix does it. GE does it. Verizon does it. Your local gym does it.

What’s the common denominator? They all have some sort of recurring income product, also known as a membership model.

In this day and age, recurring income is THE business model. If you don’t have a recurring product or service yet, you will likely get left behind by those in your industry or market who do.

Case in point: Netflix vs. Blockbuster.

Netflix started right from the beginning by getting customers onto a pay-once-a-month-watch-all-you-want plan. Customers loved it because it gave them lots of choices, and lots of freedom about when to watch their movies.

In contrast, of course, Blockbuster gave some freedom of choice – “you can get any 3 movies for $6” – but they didn’t provide for customers to watch a variety of movies, whenever they wanted. Once Netflix provided all of their movie selections digitally, instead of just by mail, the game was over and Blockbuster was done.

Why is the recurring revenue business model so popular? Below are the first four of six compelling reasons to start using this model as soon as possible:

1 – It’s money you can count on.

Sure, there are people who come and go; there will always be “churn” when you have any kind of membership program. Some people lose interest in the topic, others decide they can’t afford to stay, and still others just aren’t a good fit for the program.

But in general, if you take good care of your customers (we’ll get to that in a minute), you will have regular income that you can count on for months.

This allows you to plan for how you invest in your company: marketing, ads, launches, professional development, software and hardware upgrades, etc. When you have a regular source of income, you can make plans!

2 – There is less risk in your business.

Anytime potential investors look at the viability of a company, they always look for predictable income. The recurring revenue model gives them what they are looking for.

3 – You can predictably pay off your bills each month.

Many of your company bills are monthly themselves. Software applications like AWeber or Active Campaign. Website support. Utilities. Rent or mortgage (for your business and for your home).

4 – You spend less time acquiring new customers.

Everyone knows it is significantly more difficult – and costly – to acquire a new customer than it is to get a current customer to buy again.

Yes, as stated above, there will always be churn, so you will always need to be acquiring new customers. Besides, you likely want to GROW your customer base!

But the need for frantic, hamster-wheel-style customer acquisition is significantly lessened when you know you have a core number of customers who will likely stay with you from month to month.

To make the most of this benefit, you’ll need to know these numbers:

  • How many customers typically stay each month (retention)
  • How many customers typically leave each month (churn)
  • Your cost to convert a lead to a customer
  • Your cost to acquire the lead
  • Your customer lifetime value

When you are secure with these numbers, you’ll be able to figure out how aggressively you need – or want – to get new leads.

If all these companies rely on recurring income, for all the reasons stated above, it makes sense for you to set up up a recurring revenue model too.

As if these four reasons aren’t enough, check out Part 2 to discover two more, as well as one of the easiest-to-produce, yet most impactful recurring revenue products!

If you would like to talk to me about creating money you can count on in YOUR business, please click here to apply for the Winning Content Strategy Master Plan Session!