{"id":3653,"date":"2018-12-04T17:13:05","date_gmt":"2018-12-04T15:13:05","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=3653"},"modified":"2019-04-11T11:01:57","modified_gmt":"2019-04-11T08:01:57","slug":"guide-to-creating-recurring-business-revenue-streams","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/guide-to-creating-recurring-business-revenue-streams\/","title":{"rendered":"Guide to Creating Recurring Business Revenue Streams"},"content":{"rendered":"

When you set up your business you knew that it wouldn\u2019t be smooth sailing – there\u2019d be ups and downs, but you hoped that you could at least get yourself a steady baseline revenue, where you knew every month you\u2019d have at least X amount of dollars to get you by.<\/span><\/p>\n

Now you\u2019re in business, you realize that this isn\u2019t so easy to achieve. How do you get a recurring revenue? <\/span><\/p>\n<\/p>\n

What is recurring revenue?<\/span><\/h2>\n<\/p>\n

First, what is monthly recurring revenue? Monthly recurring revenue is the portion of your business\u2019s revenue that is very likely to continue into the future. It\u2019s your \u2018base-line\u2019 so to speak. It\u2019s predictable, it\u2019s stable and it\u2019s pretty much security in a jar. <\/span><\/p>\n<\/p>\n

How to create recurring revenue:<\/span><\/h2>\n<\/p>\n

When creating a recurring revenue stream, you\u2019re finding a way that you\u2019re business can steadily function without you being the direct salesman and making things happen. But how? There are many ways to do this, but in this post, we\u2019ll be focusing on one very effective way of creating a recurring payment revenue, which is – drum roll, please\u2026<\/span><\/p>\n<\/p>\n

A subscription model <\/span><\/h2>\n<\/p>\n

When you think of a subscription, what comes to mind?<\/span><\/p>\n

Probably your daily newspaper delivered to your doorstep by the local paperboy, or maybe your monthly National Geographic magazine delivery.<\/span><\/p>\n

Those are the origins of the subscription model.<\/span><\/p>\n

Subscriptions then extended to household staples like milk and orange juice, and nowadays you can get almost anything on a subscription basis, even razor blades and q-tips!<\/span><\/p>\n

Recurring revenue businesses include Amazon, which offers a \u2018Subscribe & Save\u2019 option whereby you can sign up to get automatic deliveries of your favorite items (or items that you generally repeat purchase) at a 15% discount.<\/span><\/p>\n

According to data from a 2018 study from <\/span>McKinsey & Company<\/span><\/a>, 15% of online shoppers have signed up to one or more product subscriptions. This gives customers the option of subscribing to your product or service at a discount which is a great way to guarantee a recurring revenue stream!<\/span><\/p>\n

Of course, you should still offer customers a one-time purchase option, but when the subscription model comes at a discounted price per product, customers will find this hard to resist.<\/span><\/p>\n

Carry on reading to learn more about how subscriptions can help your business and customers.<\/span><\/p>\n

What is a subscription?<\/span><\/h2>\n<\/p>\n

A subscription is a sales arrangement whereby customers receive products or services at set intervals for a set price per interval. Often, each sale will be at a friendly and tempting discount.<\/span><\/p>\n

If you start thinking inside the subscription box, you can really get creative with this, the options are literally endless. <\/span><\/p>\n

Right now the subscription market is boom boom booming, growing by <\/span>more than 100%<\/span><\/a> a year over the last five years!<\/span><\/p>\n

\"\"<\/p>\n

Even if you think your business isn\u2019t the best fit for subscriptions, you might just be surprised. This model works for <\/span>all <\/span><\/i>types of online businesses, offline businesses, retailers and service providers in industries across the board. <\/span><\/p>\n

For example, if you run a beauty parlor, you could offer customers the opportunity to subscribe to a monthly manicure at a discounted price if they sign up for yearly subscription billing or an indefinite subscription that they can cancel at any time.<\/span><\/p>\n<\/p>\n

Benefits of subscriptions<\/span><\/h2>\n<\/p>\n

There are so many benefits of setting up a subscription billing option for both you and your customers.<\/span><\/p>\n

Benefits for business owners <\/span><\/h3>\n