For any business that is looking to grow, its best bet is to look for ways to offer products or services on a recurring basis. This article will talk about why this approach makes sense and some examples of companies that use this model very successfully.
Many large corporations have shifted their model away from buying a product once and then expecting it to stay in stock for the rest of eternity. Companies such as Netflix and Amazon are great examples of this. Both companies make an expensive initial purchase (the price of a movie or subscription), but after that they continue to renew your membership or account indefinitely.
This type of model can be applied to anything; a monthly magazine subscription, a yearly office pool tournament, or even a one time service like picking up new supplies at a mall store.
For small businesses or individuals, this model can bring in significant income every month or year! It’s not too hard to implement either, which may be what gives you a leg-up on competition.
Running a recurring revenue business model doesn’t require much capital investment beyond whatever costs you already have covered - rent, utilities, etc. Plus, you get paid over and over again, keeping you more stable than if you were working part time with no guarantee of payment.
The other major category is what I call ‘Cannual recurring revenue’ or CRV. This is simply referring to business models where you have one product or service that people pay for annually, usually related to health or fitness.
I will use my own personal experience as an example. If you are reading this article online, then I assume you are familiar with how I promote myself and my books and courses through Amazon.com.
That is my CRV - buying My Book! from me every year is why you get my hardcopy copy and eBook version of my best-selling book A Year in Reflection (or you get nothing).
My income comes exclusively from CRV so I spend a large amount of time thinking about ways to increase it and keep it high while also preserving my lower level income sources.
I share my strategies here because I want others to benefit from what has worked for me.
Starting your own podcast is not as difficult or expensive as many people make it out to be! It does require some initial investment, but that’s only because you will need some initial equipment like microphones and headphones.
You can also find free resources online that can help get you off the ground with no cost at all. There are even free podcasts available through sites like Spotify, Apple Podcasts, and more.
A recurring revenue business model is one that does not have an endpoint where it stops making money. This can be done through a static or mobile-only site, a subscription service, or even offering paid content to other sites and brands.
The difference between these types of businesses and others is how they make their income. Some earn passive income by having a well designed site that people visit frequently (think Amazon). Others need your interaction with them more often for continuous income (think Netflix). And some require you to interact with them less frequent but larger payments each time (think Spotify)
I will talk about two examples of websites that implement this strategy and what kind of company they are. The first example is my own website, BusinessDirt.com. I will also discuss another example from a student of mine who runs her business under the same umbrella as me — Kiri Baka.
Business models like these take extra effort to get going, but once they do, they keep producing income consistently without any special events. They create a sense of security for owners because they know there is always enough money coming in.
A good way to start building your online business is by creating an easy-to-manage, personal website or profile page for yourself. This can be done through various free web hosting sites like Google Sites or WordPress.com.
You should definitely consider starting off as a simple site with only one feature before expanding onto other features such as eBooks, videos, courses, and blogs. Starting with a basic blog will help you develop your writing skills while also establishing a presence on the internet.
Many people make their living via blogging, so don’t hesitate to get started! There are many ways to earn money from blogging including through advertising, affiliate marketing, publishing, and Patreon.
Running a giveaway contest every week or monthly is another way to gain attention and followers. You could even put your services up for sale if you feel that your workload has slowed down or you want to shift focus onto other things.
A recurring revenue model does not require you to buy expensive, flashy new gear every year. In fact, some of the most successful online businesses use low-cost software or tools to make their income more than enough!
There are many ways to run a YouTube channel with this type of business model. You can create your own content or find other people’s material that you can rebrand and sell as yours.
The easiest way to start is to invest in a good camera to film and edit your videos. We recommend the Canon DSLR so that you know exactly what settings and features your video will have.
After filming your videos, you can either upload them yourself using a free website like YouTube or paid services such as OBS (Open Broadcaster Software) which has much higher levels of functionality. Both of these allow you to record and edit your videos easily.
These apps and sites also offer great community forums where you can get help for any issues you may come across while editing and uploading your videos.
Even though you may not have an active website, it is still important to have web hosting. Web hosts will typically offer either a paid or free account option at their site, with the paid ones offering more features.
Most good web hosts these days offer both personal and business accounts. The cost of the business account is usually higher than that of the personal account, but this gives you more room for growth.
You should always check out the different plans a host offers before signing up as a customer. Some only include certain functions such as email, domain name registration, and storage space, while others also give you access to shared servers, PHP programming language, and so on.
There are many ways to make money online through having your own website and additional services you can purchase from time to time. Many people begin by getting a free website via a social media platform like Facebook or Twitter.
Starting a podcast is not difficult to do, nor does it require much investment. You can start with no equipment beyond an iPhone or Android phone and some music that you’re willing to upload to somewhere like YouTube.
You will need a microphone to actually have someone listen to your voice, but many people use the one built into their smartphone these days!
If you are more creative, there are lots of free resources available online for inspiration and guidance on how to be creative and express yourself. Some of this may include talking about things that you love, doing interviews, having a topic and conversation, etc.
It is totally okay if parts don’t make sense at first, because most people feel nervous when they launch their own show for the first time.
The second way to define sustainable revenue is recurring annual revenue (also called recurring income). This is when your business has an activity it repeats annually, usually with a fluctuation in amount each year. For example, if your business is for dog walkers, you would have to work during different times of the year depending on the season and weather.
During these off seasons, however, you would need to come up with a plan B to keep your dogship business going. You could start offering additional services like pet sitting or house-sitting while they are closed.
You can also offer discounts to potential customers due to limited availability of service at that time of year. By having such a constant source of money coming in, you will know enough money will always be there for your business!
There are many ways to achieve this type of monthly or yearly revenue stream. Some examples include: advertising, products and services, collaborations, and referrals. Having one of these as the main source of income for your business will help you along the road to sustainability.