Have you ever heard the term “recurring revenue”?
In simple words ‘Recurring Revenue’ means money coming in, again, and again, on an ongoing basis.
Now, wouldn’t that be great? People paying you repeatedly?
Yes, thats exactly what the model of recurring revenue is. Does it even exist? Sounds magical, isn’t it?
Yes it does. And its all around you.
Any product or service offering where the customer keeps paying a fixed amount at regular intervals. Common examples are milkman, newspapers & magazines subscriptions, tv channels, cell phone services, education, travel passes, memberships, and so forth.
In fact it is so powerful that many established businesses are changing their pricing and offering models to switch to this method of revenue generation.
When you adopt recurring revenue approach, you are able to lower the entry point to a much more attractive price point where it can become a no-brainer and impossible to refuse.
I recently wrote a detailed post on this topic that you can read here.
Like always, I will be looking forward to your feedback and comments.