This week we are talking a lot about recurring revenue, that’s revenue that you earn on a monthly basis, like a job but better. Earning recurring revenue is the best way to keep your existing small business afloat even during down times like holidays and sickness.
Having a steady monthly revenue is money that you will earn week after week or month after month with just a little daily upkeep. You can add levels of recurring income to your business model even if you are a service provider.
Here are some ideas you can start right now to set up a few recurring revenue streams.
Write an eBook - Don’t just write the eBook, sell it. Today it’s very simple to put a book for sale on Kindle via Amazon.co.uk. Even if you only sell your book for .99 pence you can make a nice, steady recurring revenue stream. You can write books about your own business, your own life, or even a fictional novel if you want to. There are writers who could not get published in a traditional manner earning six figures via Amazon Kindle. Why not you? Many business experts have a book, it adds to their credibility and it can add to yours. Imagine making recurring revenue years down the road from work you did today. Take a long, serious look at writing an ebook.
Teach Others – Most people are an expert at something. If you are making money working from home as any type of service provider, you can help others do the same. Create an ecourse, and either put it in a members only website (the Premise WordPress plugin will help you with this) or have it delivered by members only email subscription sign up. The good thing about this is the work is done once, and other than occasional updates to the information, this recurring income idea will be on auto-pilot just like the eCourses.
Technical Support – Look at the services you provide and choose the ones that must be done on a regular basis. For instance, if you’re a technically inclined Virtual Assistant who works with their clients on keeping their websites updated you can offer a monthly recurring package of updates. You would put the client on auto-pay, or auto-billing which can easily be accomplished with billing software such as Freshbooks.com and even Paypal, and then you would automatically do the updates as needed for their sites with a mutually agreed upon schedule.
Create a service club – Many big name sites do it, like Amazon, Costco and others. For a small membership price you are first in line for service, or you get other special items if you choose to use them. The trick here is that the specials do not roll over and the client must act by a certain date each month. For instance, if you’re a graphic designer you could offer 1 banner, 1 button, and 1 other graphic each month for a price you feel is fair. The member is set up on auto pay or recurring billing the first of each month. The members are entitled to use their credits on a first come, first serve basis with a 48 hour notice. If they choose not to use their credits one month, it does not roll over. Believe it or not people will pay for the privilege of being first just like they pay for the privilege of convenience.
Long Contracts – Another idea for recurring income is to give discounts for longer contracts. Instead of just working week to week or month to month give your new clients (and old) the option to sign a yearlong contract for a discount. Make the terms of the contract explicit that if they leave the contract early they will need to pay the discounted fee difference. For instance, if you give a 50 dollar per month discount due to the client signing a yearlong contract, then they cancel after seven months, to end the contract they will need to pay $350.00 to end the contract early. Ensure that all your payments for these contracts are received before you start any work agreed upon.
These are just 5 ideas to kick start your recurring monthly incomes, what others would you add to the list?