Zendesk Recurring Revenue

While many companies focus only on their direct sales channel, there is an important second revenue stream that most businesses miss out on. This is called recurring revenue or retainer-based business models.

Recurring revenues are fees paid for services or products that are not one time purchases but instead are repeated over a longer period of time. For example, if you are a web developer, your standard fee can be monthly or yearly depending on what projects you take on. Or if you run a fitness center, your membership dues are a recurring income source as you keep paying it every month!

Most small business do not use this type of model because they do not know how to market them or they do not have the budget needed to advertise effectively, but it is possible. There are ways to go about doing it though -- you just need to find appropriate vendors and get creative with marketing strategies.

Zendesk is a great service that has lots of potential in terms of recurring revenue. In this article, we will discuss some of the easier ways to start generating extra money through referrals and repeat customers.

Who uses Zendesk?

zendesk recurring revenue

Many large companies use Zendesk to manage their customer service messages and conversations. These include significant brands such as Google, Amazon, Walmart, and Apple.

Zendesk is also popular among small businesses, particularly those that handle sensitive information or require extra security measures.

It’s very common for big corporations to use Zendesk as an all-in-one solution for messaging, reporting, and monitoring of internal and external services.

Because it’s designed to work seamlessly, most users don’t even realize there are additional fees attached to some features. It can seem expensive at first, but recurring revenue makes sense over time!

There are several reasons why you should consider adding recurrent billing to your Zendesk account. But before you do, make sure to check out the costs involved to see if this is right for you.

What is a Zendesk subscription?

zendesk recurring revenue

A recurring revenue model for your business means that you’re paid regularly, not just once at the end of a season or quarter. This is typically through an annual membership, monthly subscriptions, or a weekly/monthly subscription program.

A recurring revenue model can be more stable than a traditional income source like advertising or direct sales, because it doesn’t depend on one product being in-demand to make money.

With subscriptions, people are paying to use your service every month or year, which creates a steady flow of revenue. Because there’s no big event happening to generate cash, this form of income is less likely to get cut off due to lack of activity.

There are many different types of recurring revenue models, but the basics stay the same. You create a product or offer them as part of a regular service, and then you collect the payment each time they use it.

Products with recurring revenues often go beyond just having a monthly or yearly fee, however. Some give discounts during certain times of the year, or have other special offers only available for specific amounts of usage.

This article will talk about some strategies and tips for how to succeed with recurring revenues for your business.

What are the different plans?

zendesk recurring revenue

A recurring revenue model doesn’t have a monthly or yearly renewal, instead it is an online service that you pay for on a per use basis. This gives you more time to re-invest in your business because there isn't a need to focus on how to make sure people are going to renew their subscription.

You can also add features as time goes on or remove ones that are no longer needed. This way users will continue to use the product and keep paying for it!

There are three main types of recurring services with Zendesk. You get them at no extra cost when you purchase a Zendesk license, but some may be paid additions depending on what plan you choose. These include: Credit card processing, Customer support via Live chat, and SMS customer service.

Zapier is another app that uses this model. They offer a free trial so you can see if this makes sense for your business.

How can I get Zendesk recurring revenue?

zendesk recurring revenue

The best way to achieve this is by offering services or products that require a monthly, quarterly, yearly subscription. For example, you could offer someone access to your business’s internal messaging system for $12 per month or you could create an account-based service where people pay a one time fee to use certain features of yours.

There are many ways to make money via recurring revenues! You just have to know how to market them.

For more tips on how to do this, check out our article here: Tips To Get More Money From Your Product Or Service.

What are the benefits?

One of the biggest questions that most companies struggle with is how to best handle recurring payments for their business. Most small businesses don’t have a dedicated team member who handles this type of transaction, so they outsource it to an outside provider.

This can be problematic in many ways. First, you will pay higher fees than what your company should be paying – not a good thing when you're trying to run a tight budget. Second, there are few standards across all vendors -- some use proprietary software, others free software, and still more only offer basic features.

Zendesk has designed its own platform from scratch that allows them to integrate easily with any other tool or system you may already use. This article will talk about why these types of services cost money and what things you need to look into before choosing one.

What are the challenges?

zendesk recurring revenue

One of the biggest hurdles to recurring revenue for companies is actually getting people to pay you to use your service. This can be tricky since most services have a free plan that they advertise with, but few give away much more than limited features.

By offering additional paid plans or significant discounts on existing ones, you’re incentivizing people to switch providers which is great, but also means you’ll need to source enough income to cover the costs associated with those changes.

Another challenge is how to keep users engaged when there are no new feature additions. Most businesses will run out of things to ask about and doze off at the end of each day, so having an easy way to add onto their current offerings is important.

It should be noted that not every business will necessarily benefit from the start up process mentioned here, but it is helpful for those who do.

What should I do next?

zendesk recurring revenue

After you have implemented your new Automation, there is still something important to address! What now? You will need to actively manage your Auto-Responders and messages for these products!

You will want to make sure that your customers are able to successfully use each product before moving onto the next one. This means making sure they can create an account easily, understand how to use it, and that their issues get addressed properly.

It also means monitoring the responses so people don’t give up because they think everything has been done for them!

Zendesk offers a number of different features including custom actions, waiting time, and even letting users choose whether they want to pay or not for help. All of this depends on someone actually using the app! If they never see the “Help” button or no one answers questions, then what was the point?

The hardest part about managing recurring revenue is sticking with it and keeping motivated.

What tips do you have for starting Zendesk recurring revenue?

zendesk recurring revenue

Starting up an additional income stream is never easy, but it is totally achievable with the right planning and execution. And if you are struggling to come up with ideas to launch your business, we can help you out here!

Zendesk has some great services that offer recurring billing. This is perfect for businesses that get frequent sales or require small monthly payments. The best way to start offering these products is by creating a free trial of the most expensive package.

This is the most cost effective method as you will only need to create a subscription box for users to try out the product before buying a plan. By doing this, you will also gain insights into how much content people love and want to see, which is important when deciding what packages to include.

Once you find your feet, you can move onto cheaper plans and increase the price as time goes on.

About The Author

Tiara Ogabang
Tiara Joan Ogabang is a talented content writer and marketing expert, currently working for the innovative company juice.ai. 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.
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