We all have those clients that say they love our product/service so much that they will definitely return, and then they don’t. What would the financial impact be on your business, your cash flow, your debt or even just your life if your clients actually returned? Would you have made it big time and won the proverbial lottery? I suppose we should tell you how to ensure that recurring income happens before we let you dream about how you’ll spending the money.
Regardless of the type of business you run, there is something in here for everyone and even if you can’t implement it all, we encourage you to implement as many of the models described as you can because ultimately the more recurring revenue your business can generate, the less you will have to advertise for new clients and the more peace of mind you will have about your fixed income.
1. The Network Model.
If your business can offer some sort of online or application based service where customers pay you on a monthly subscription basis e.g. hosting services, your business will improve as your subscription base grows. The network model is very beneficial for customers because as the business grows, all of your subscribers benefit from a stronger & more reliable service and this doesn’t necessarily mean that they have to pay more on a monthly basis.
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2. The Consumables Model.
If your business sells items that run out or need to be replaced at some point e.g. coffee, people are willing to pay for convenience so look at what you sell and offer a comprehensive shipping service that delivers these products to their door every week or month. People/companies offering services can also benefit from this and submit the requested product via electronic measures.
3. The Peace of Mind Model.
This is perfect if you can be the watchdog everyone needs. Can you monitor a teenager’s GPS on their cell phone and let his/her parents know when they’ve exited a safe zone? Can you notify a business if their servers are down or when a backup fails to complete? If you can write software, or own the software that can help a stressed out parent or over worked manager get some peace of mind, sell it!
4. The Membership Model.
So you’re an expert on baby goods, mechanics, IT, medical research or anything really, and you have access to a wealth of knowledge on the latest and greatest developments in these fields. A subscription fee could give followers ongoing access to your insider knowledge, research and even products or services that you’ve tested and agreed to promote for commission.
5. All-You-Can-Eat Content Model.
If you have a content driven service that already has followers you could create a subscription based service that entitles payers to the latest content first or follow the same principle as services like Netflix where a subscriber pays for access to constantly growing content.
6. Private Club Model.
If your service or product is a limited supply, give it exclusively to status holders/seekers. You’ll need to convince your customers that your offering is unique and rare and convince them to subscribe to a long term commitment. Remember that with this your tangibles will need to make them feel like a VIP.
7. Surprise Box Model.
This is a trend that you may have noticed many social media celebrities boast about, especially in sponsored content. Create a carefully curated package every month for your target market and ship it to them, without letting them know what’s inside. People subscribe because they love getting a box filled with unique, useful, delicious, etc. surprises. The possibilities here are endless, because anything goes.
8. Front of Line Model.
This is a service that is beneficial to the market that is willing to pay more to avoid long lines or long waiting times for certain products and services. Due to their increased subscription they get access to your facility, attention from you team or even a faster service than the average subscriber. Courier companies have same day offers and WAPPoint has a Premium Support option for faster swap outs.
9. Simplifier Model.
Who doesn’t want a more simplified life? This model will work well for a personal service model like personalised grocery shopper, dog groomer, tutors etc. The key is however that you need to do as much as possible for them like reminding them about the appointment, doing stock check for grocery shopping/having a 5 minute check list available and even to arranging payment for your services.
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Now that you know of the different ways to generate a recurring income, you’ll need to research the logistics behind it. Carefully plan the service from beginning to end and remember to include how to sell it and how to support it. WAPPoint can help you manage the recurring payment part of your subscriptions; give us a call to find out how!