Revenue Recurring Model

A revenue-recurring model is one that creates continuous income for your business, instead of having an endpoint where you earn nothing or very little money, with the exception of short breaks between months when no sales happen.

This is different from what I like to call “eventual profit” businesses, which are ones that can take a long time to break even (if they ever do).

With a revenue recurring model, you keep producing content and offering services for your customers in the hopes that it will win them back as customers or attract new ones.

It may sound crazy, but there are many successful companies out there that use this approach.

In fact, I would say that almost every large company has at least some components that fit this model.

By creating products and services that people want, you have already won part of the battle!

Keep doing that and eventually your business will succeed. And here's why...

Why Your Business Should Be a Reqiuence Recurring Model

There are several reasons why most big companies operate under a revenue recurring model, and it's something you should consider for your own business.

So let's talk about three of those right now!

1. Customer loyalty
2. Systems and processes
3. Slow growth

Customer Loyalty

The first reason is customer loyalty. This comes down to understanding who your customers are and keeping them as repeat buyers.

Examples of revenue-recurring models

Many businesses rely on what we refer to as a revenue recurring model. This is when a business offers products or services for a set price, typically monthly or yearly, but there is an additional cost attached to use their service.

The additional fee is usually connected to another product or service that they offer – for example, if you are a member of their social media site, your membership fees include access to all of their other sites and services.

This is similar to buying a book and getting a discount on any other books at the store you purchased it from! I will talk more about how this applies to online businesses in our Post About Starting An Online Business.

Own your customer

revenue recurring model

Another way to run a business is what we call a revenue-recurring model. With this type of business, you don’t have to worry about finding new customers or promoting your product in order to bring in income. You keep selling your products and services while the market keeps buying!

A great example of this is someone who sells cosmetic bags. They sell very pretty cosmetic bag cases and covers, and they are always being bought and used.

They also probably already have most of their potential customers because people who use such bags frequently end up leaving reviews online or telling others about them. This helps promote the product for them!

So instead of having to find more customers, you just keep reaping the benefits of the ones you already have. Plus, you get to focus more on creating quality merchandise and designing cool ways to organize things.

This article will talk more about how to start a revenue recurring business.

Customer service

revenue recurring model

A recurring revenue model requires you to keep in close contact with your customers, which can be tricky at times. You will need to find ways to manage client relationships so that they are consistently good, but not necessarily great.

That is why it is important to have strong customer service skills. This includes answering emails, supporting conversations via phone or chat, and developing trust that allows you to push boundaries and offer new services to people regularly.

By having these qualities, you will create an environment where clients come to you instead of the other way around.

Clients will feel more comfortable asking for things from you since you’ve built up rapport and there are no surprises or extra fees. At the same time, you will earn their loyalty by being consistent and understanding what they want.

It is also important to remember that some sales may fall through, even when you're offering valuable services to someone. Sometimes, this happens because people cannot afford the product or solution you promote, or they get something different (or better) elsewhere.

This is totally normal and expected! Don't take it too seriously, and stay motivated and focused on providing the best possible experience for your current clients as well as future ones.

Retention marketing

revenue recurring model

Another way to generate revenue is through what’s known as retention marketing. With this, you will create products or services that people already want or need, and then you get paid for giving them to your customers.

A great example of this is buying a book because you know someone who loves books. You can be given a fee for each person who buys a copy from you.

This is similar to how publishers make money- they are paid per copy sold. The difference is that with these types of products, you are being paid to give it to people, not sell it yourself.

The product may seem useless at first, but eventually someone will need it and pay you for it.

Subscription-based marketing

revenue recurring model

A subscription is an agreement to pay for a regular service or product set up by the business. The term “subscribe” comes from the word subside, which means decrease or reduce. For example, if you are subscribed to your favorite magazine, then you are paying monthly to access their content.

Many companies use subscriptions as a way to make money because it creates a constant flow of income. This is different than having one big sale that can be oversold, creating a short period of time in which there is no revenue. With a recurring subscription model, income keeps coming in consistently!

The best way to know if this style of business model is right for you is to think about what types of products and services you enjoy and how much they have costed you before. If nothing has ever made you feel good about buying them, chances are a subscription is not for you.

Also, will these products fulfill you enough so that you will continue to purchase them? How much do you want to invest in these brands/products? All of these questions must be answered before deciding whether or not to add a subscription to your life.

With all of these questions being considered, the next step would be to determine if the company offers a subscription f2f (face-to-face) format or online only. Some people prefer one form over another, so this should also be factored into the decision making process.

Product launch

revenue recurring model

A product launch is when you market your new product or service to the public for the first time. This is typically done at a large event where people can attend free of cost, so that most if not all attendees are aware of what products and services you have and what they do!

Product launches are very common these days as there’s always something new being marketed and publicized. Technology keeps getting more advanced which helps promote this product launch.

By having a product launch, you will get many benefits such as increase in traffic, conversions, and income. Doing a product launch does not need to be expensive unless you are the one paying for it like hosting an event.

There are several ways to conduct a product launch without spending too much money. You can do it yourself or hire someone else to help you do it.

A/B tests

revenue recurring model

A recurring revenue model requires you to constantly test different marketing strategies to determine which ones work best for your business. This can be done via A/B testing, where you produce two versions of an advertisement or website content, compare their effectiveness, and then use which one you want to continue using.

This is very common practice in the internet advertising industry. It was made popular through the use of websites that offer free services such as Google Ads or Facebook ads.

By using this technique, you will get more accurate results due to there being no habituation effect. The less people see of something, the weaker its effects are!

There are many ways to perform A/B tests, like creating separate advertisements or new pages with different content, changing the color, adding pictures, etc.

Testing how well each version of the ad performs is important since it gives us a clear picture of whether or not the advertiser pleased with the result and thus decided to keep doing that style or add another one.

Heck, even if they thought it didn’t do anything extra for their company, they could have just left it alone and still received money because it proved other styles don’t work.

Social media

revenue recurring model

With the explosion of social networking sites, it is now possible to create free online platforms that people use to share content and communicate with each other.

Most large companies have realized how valuable this tool can be for their business. By creating an app or program using these websites as the backbone, you are able to earn revenue from users who pay to access your platform.

This is called a freemium model - services are either free or cost money, but not much. The providers of the service get paid through advertising or additional subscription fees.

The best way to apply the revenue recurring model to writing is by offering professional quality content. You may want to start off providing low-quality articles and materials to prove your worth, then work up from there!

By offering only high-quality written material, your potential audience will continue to subscribe to your site and contribute more income.

About The Author

Tiara Ogabang
Tiara Joan Ogabang is a talented content writer and marketing expert, currently working for the innovative company With a passion for writing and a keen eye for detail, Tiara has quickly become an integral part of the team, helping to drive engagement and build brand awareness through her creative and engaging content.
Juice Beta is ending July 1st! Subscribe before end of month to lock in Juice Plus for 50% off!
$49 $25
Sign up now
Juice Beta is ending soon! Subscribe now to lock in Juice Plus for $49 $25
Sign up now