6 Repeat Business Strategies to Rock 2023 |
What does Netflix, Microsoft, your gas company, and your local coffee shop all have in common?
They are all recurring income businesses. Businesses that are repeated. As in, people continue to pay them month after month.
Unlike the poor suckers who are fighting for clients and customers every month, repeat-income businesses can often spend less time and energy on new customer acquisition and focus on providing value to existing customers they already have. Recurring revenue gives you a predictable income, helping you to plan for the future.
There's something awesome about repeat business. When you build something that clients keep returning to or willing to invest in each month or every year then you've got the formula to make money.
In this article in this article, we'll offer you some business ideas. These repeat business ideas can help you create an enterprise that will keep clients coming back month after month which is extremely successful!
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The benefits of recurring revenue
5. Service of subscription (product-led)
What is recurring revenue?
Recurring revenue occurs the time when your customers make payments to you repeatedly each month and years.
It may be a subscription-based business or membership business, these generally require regular monthly payments. The account you have on Netflix account is a source of Netflix regular revenue regardless of whether you shared the password with your cousin in Idaho.
Perhaps, it's just be a sign that you've created a company which customers come back to, such as Starbucks. This kind of repeat purchase businesses also create regular revenue. In addition, the more frequently customers come back and return, the greater the value of the business.
Benefits of recurring revenue
The recurring revenue model is at the heart for some of the most successful companies around the globe. In the introduction to this piece, we spoke about organizations such as Microsoft. At the time, you used to buy Microsoft Office in a box. You paid for it once and then installed the CD-ROM onto your personal computer (are we dating ourselves here? ).
You probably now download it and pay a yearly fee. But unlike the $150 CD-ROM that you probably used every five years, and shared with all your friends in turn, by turning their program into regular revenue, that is, you pay $100 each year - Microsoft can make even more.
That's why increased revenue is one of the benefits from a business that reinvests in its revenue. There are many more benefits:
- Lower CPA. Any business needs to think about its CPA (cost per acquisition of a client. Companies that have recurring revenue do not need to continually resell the same customers.
- Scalability. Recurring revenue provides the ultimate scalability. If you can maintain your churn percentage low, you will continue to add new customers to your current customers. This is business growth!
- freedom. A repeating revenue company can provide the financial stability that allows you to deliver the best solution or product.
6 Repeat business ideas
1. Community
At Mighty we assist people to develop one of the best business models for recurring income: community .
Communities of membership work. At a human level it is because we all crave connection and meaning. By joining an online community, we will learn something that is important to us and meet people that we are passionate about.
However, the business aspect of the community can be pretty amazing too.
Imagine a business you could begin with zero and then grow to 100,000 every month. It's happened.
Community memberships are a powerful recurring revenue business.
For a community to be established, you'll identify an ideal member and an important Goal. Find a great community platform like Mighty that allows you to create and manage your community. Add your personal brand and everything you have to sell. You're now off to the races.
From our research We've found that the communities that charge for membership do better. They are more active members as well as are more profitable.
This is because people value what they pay for.
Communities with recurring revenue business models:
2. Plans for retention
Another recurring revenue business is one that relies on retainers. These are typically associated with firms that provide advice to on behalf of other businesses, and possibly more famously, working with lawyers.
A business that is based on a retainer means that a company will pay the business an amount every month to provide specific 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 models however, they could be very profitable. If your business provides digital marketing services to 10 companies that charge them every $5,000 a month, then you are an agency that earns 50k per month!
You get to focus on your strengths and create a successful business around the expertise you have developed. Your company will benefit of your business's expertise, without the need to employ someone to perform the job.
Recurring business revenue:
- Lawyers
- Bookkeeping
- Digital marketing
- Content creation
- Financial advisor
3. SaaS
A single of the most attractive recurring revenue business models is what's called SaaS - that means, software as services.
SaaS businesses provide their customers with software that makes their life more convenient. As a result, the user is charged a monthly fee for the use of that program.
We discussed the example that we discussed of Microsoft Office above. The technical aspect of Microsoft works on a SaaS model. Consider companies such as QuickBooks, Adobe, Evernote, Zoom, and Dropbox. These are all companies that provide software as a service.
It's actually an SaaS business. We give businesses and creators the tools to create communities classes, online content and even commerce. In the return, we pay our users an annual fee.
In the past, you needed to learn how to code to create an SaaS company. Given the lack of codes and white-label alternatives that are available, it's feasible to have a SaaS business up and running - even with a small bootstrap budget
Illustrations of SaaS recurring revenue businesses:
- Dropbox
- Microsoft
- Evernote
- QuickBooks
- Adobe
- Mighty
4. Local businesses
Moving from SaaS businesses that span the world, let's talk about one of our local repeat business ideas A local business that is a member.
If you take a look through your city you'll see various local membership businesses. One of the most prominent is the gym, where members pay per month to use the equipment they have.
You may have bumped up against recurring revenue businesses such as dance studios, yoga classes, kids sports, or music classes. Each of these businesses provides a product or a service that you pay for frequently.
Or, look at your local coffee shop and masseuse or hairdresser to see if they have businesses that offer repeat purchases. They don't work on the basis of a membership however, customers come returning time and time repeatedly.
If you want to start your own local repeat business look at what the people are willing to pay. What's missing? What can you do to create an enterprise that customers will keep coming back to again and repeatedly?
Local business that have a history of repeat customers:
- Gym
- Yoga studio
- Bouldering cave
- Play Cafe
- Hair salon
- Café shop
5. Subscription service (product-led)
Subscription service is another possibility for business models that generate recurring revenues. The majority of us pay for of high-end subscription services, think Netflix and Disney +.>
But there are a lot of subscription companies that are doing very well at a smaller size. The growth of Substack led to an increase in paid newsletters. The email service Convertkit joined the bandwagon as well.
Or how about the possibility of a subscription-based product? If you've ever paid an alcohol-of-the-month subscription, or even a wine-of-the-month club, you've experienced one. From whiskey to razors, food , books and even underwear, there's plenty of choices
Some examples of subscription-based business revenue:
- Wine club
- Artsnacks mix
- Book of the Month
- Hello Fresh
6. Model of licensing
Licenses are another of those businesses that isn't so widely known. In a business that licenses, you own some type of intellectual property or patent. Your clients then pay you recurring fees to gain access to the.
Last year during the time that Taylor Swift famously re-recorded her earlier records, the singer did so in order to circumvent a simple issue: somebody else owned her music. Her label owned the licensing rights to the songs and made all the money on it.
It's not the same as licensing, but it's very closely linked. If you buy an McDonald's restaurant, you're paying to use the brand name. The headquarters will tell the restaurant how to decorate it and what type of cups to use.
However, you will receive a trusted brand name that has a track record of success as well as instant name recognition as eager customers drive through.
McDonald's The head office, not your local restaurant, operates under a licensing model.
If you are planning to begin an enterprise of licensing it is necessary to have any kind of intellectual trademark or. When you have it this, it is possible to get other companies to purchase it for use. it.
Are you ready to begin?
If you're thinking of a recurring revenue model that you've come up with, we hope this article has helped. There are a lot of business models that repeat in the world, as well as a lot of proven models. Play your cards right and yours might be next!
If you're developing a membership or subscription business make sure you build with Mighty! Our robust software for culture lets you combine community, content, courses, and commerce. With our Spaces with flexible options it is possible to mix live streaming events, live streaming, discussion forums, profiles of members Chat and messaging and much more!
The app allows you to make payments in various currencies, or even monetize using token-gating. We've also got an application for all devices, or even to build an app that is white-label.
Entrepreneurs and entrepreneurs across all kinds have used our software's power to create incredible businesses with recurring revenue such as Adriene Mishler - YouTube's best-known yoga instructor, Marisa Peer, and Sadie Robertson Huff.
If you're interested in seeing how you can create Try it yourself! Try it free for 14 days, no credit card needed.