6 Repeat Business Ideas to Rock 2023 |
What does Netflix, Microsoft, your gas company, and the coffee shop in your neighborhood all have in common?
All of them are recurring revenue businesses. Recurring businesses. That is, they continue to pay them month after month.
Unlike the poor suckers who are fighting for clients and customers each month, repeat revenue companies are able to spend less energy and time on clients and can focus more on providing value to existing customers they already have. Repeating revenue provides regular income and allows you plan to the next year.
It's a wonderful thing to have the concept of repeat business. When you build something that clients keep returning to, or are willing to pay for every month or year, you've got a recipe for profitability.
In this post, we're going to give the reader some ideas for businesses that have recurring revenue concepts. These ideas for recurring business can assist you in creating a business that keeps clients coming back month after month and is super successful!
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In this piece...
What exactly is recurring revenue?
5. Service of subscription (product-led)
What exactly is recurring revenue?
Recurring revenue is the time when your customers make payments to you repeatedly each month and years.
This could be a subscription or membership business, these typically require regular payments. You Netflix account will pay Netflix regular revenue regardless of whether you shared the password with a cousin from Idaho.
Perhaps, it's just mean you've built a business that customers keep coming back to - such as Starbucks. Repeat purchase companies also earn regular revenue. In addition, the more frequently customers return to the business and return, the greater the value of the company.
Benefits of recurring revenue
Recurring revenue forms the basis of some of the most successful businesses across the globe. At the intro to this piece, we spoke about businesses like Microsoft. In the past when you bought Microsoft Office in a box. Then you paid once and then installed the CD-ROM onto your computer (are you sinning here? ).
You probably now download it and pay an annual fee. But unlike the $150 CD-ROM that you probably used every five years, and shared with all your acquaintances in turn, by turning their program into an ongoing revenue stream - which is $100 per every year Microsoft can make even more.
It's one of the benefits from a business that reinvests in its revenue. Here are some others:
- Lower CPA. Any business needs to be thinking about their CPA, or cost per acquisition of a client. Businesses that earn recurring revenue don't have to keep reacquiring the same customers.
- Its scalability. Recurring revenue offers the most scalability. If you are able to keep your churn rate relatively low, you will continue to add new customers to your existing customer base. It's growth for your business!
- freedom. A repeating revenue company can provide you a solid financial foundation that frees you up to concentrate on providing an outstanding item or service.
6 Ideas for repeat business
1. Community
At Mighty, we help people develop one of the best business models for recurring income: community .
The membership communities are a good thing. On the human level the reason is that humans all want the connection we feel and the meaning. By joining an online community, we can learn something that is important to us and meet people that we are passionate about.
The business side of community is quite cool too.
Imagine a business you could start for next to nothing and scale to $100,000 per month. It's happened.
Community memberships can be an extremely profitable recurring revenue venture.
For a community to be established, you'll identify an Ideal Member and a Big Purpose. Find a great community-building platform such as Mighty that allows you to build and host your community, adding your own identity and the items you'll have to sell. And you're going to race.
From our research, we've seen that communities which charge members for membership perform better. They have more engaged members and are more successful.
This happens because the public values what they pay for.
Communities that are recurring revenue companies:
2. Retainer plans
Another type of business that is recurring is one that relies on retainers. These are typically associated with firms that provide advice to others, but probably more famously, with lawyers.
A business that is based on a retainer means that an organization will pay the company a certain sum each month for specific services. When it's services that are ongoing, you've got an underlying source of revenue that is recurring.
Retainer businesses are often overlooked as viable business models however, they could be extremely profitable. If your company provides digital marketing solutions to 10 businesses and charges them $5k per month, then you are an agency earning 50k each month!
Focus on the things you excel at, and build a business around the expertise you have developed. A company gets the benefit of the expertise you have built up, without the need to employ an employee to do the job.
Recurring income businesses:
- Lawyers
- Bookkeeping
- Digital marketing
- Content creation
- Financial advisor
3. SaaS
A single of the sexiest model of recurring revenue businesses is known as SaaS meaning, software as an service.
SaaS businesses provide their customers with some sort of software that helps make their life more convenient. In return, the customer has to pay a fee each month to access the software.
The example was discussed in the context in the case of Microsoft Office above. It is true that Microsoft operates on an SaaS model. Think about companies like QuickBooks, Adobe, Evernote, Zoom, and Dropbox. These are all companies that provide software as a services.
Actually, even is a SaaS company. We provide creators and businesses with the software to build community, courses, content, as well as commerce. In return, our members pay the monthly cost in one lump sum.
There was a time when that you had to be able to code to create the SaaS company. With the amount of no codes and white-label alternatives available, it's possible to set up a SaaS firm in operation - on a bootstrap budget
Illustrations of SaaS recurring revenue businesses:
- Dropbox
- Microsoft
- Evernote
- QuickBooks
- Adobe
- Mighty
4. Local business
The transition from SaaS companies that reach around the world, let's think about one of our local repeat business concepts: a local membership business.
Yes, if you glance around your town, you will see all sorts of local businesses that offer membership. One of the most prominent is the gym. members pay per month to use their facilities.
There are many ways to get against businesses with recurring revenues in the form of yoga studios, dance classes, kids sports, or music classes. Each of these businesses provides products or services that you pay for regular fees.
Take a look at the local cafe or masseuse to see if they have businesses that offer repeat purchases. They don't work on a membership model and customers are able to come returning time and time repeatedly.
If you want to start an established local business look at what the people are willing to pay. What's missing? And how can you create something that your customers return to repeatedly and repeatedly?
Exemples of local companies that are repeat clients:
- Gym
- Yoga studio
- Bouldering cave
- Play cafe
- Hair salon
- Cafe shop
5. Subscription service (product-led)
Subscription services can be another option for recurring revenue business ideas. We pay for a lot of premium subscription services. think Netflix or Disney +.
But there are a lot of subscription-based businesses that are successful in a lesser level. The growth of Substack led to an increase in paid newsletters, and the email provider Convertkit has joined in as well.
Perhaps an online subscription that is based on a product? If you've ever sunk your money into an alcohol-of-the-month subscription, or even a wine-of-the-month club, you've experienced one. From razors to whiskey to books, food and underwear, there's plenty of choices
Some examples of subscription-based business revenue:
- Wine club
- Artsnacks mix
- book of the Month
- Hello Fresh
6. Model of licensing
Licensing is yet another one of the recurring revenue business concepts that aren't as well known. Through a licensing company it is possible to own a certain type of patent or intellectual property. Your clients then pay you recurring income to access that.
Last year during the time that Taylor Swift famously re-recorded her debut album, she was doing it to avoid a single issue: someone other than her own music was the owner. Her label had the right to license her songs, and she was earning all the money on it.
The process of franchising isn't the same as licensing, but it's closely related. If you decide to purchase the rights to a McDonald's restaurant, you're paying to have the brand name. As a result, the corporate headquarters is able to instruct the customer how to decorate their restaurant and what type of cups you should use.
But you receive a trusted business name with an established track record of achievement, and instant branding recognition whenever hungry customers are driving across the road.
McDonald's - the head office, not your local restaurant, operates under the basis of a licensing system.
If you are planning to begin your own licensing company then you must own some sort of intellectual product or brand. Once you do this, it is possible to get other companies to buy your rights to use it.
Are you ready to get started?
Whatever recurring revenue business model that you've come up with This article hopefully helped. There are a lot of repeat-based business concepts out on the market, along with a plethora of profitable models. If you play your cards well, it could be yours!
And if you're building an online subscription or membership business Come build it using Mighty! Our robust software for culture allows you to mix communities, content, classes and even commerce. With our Spaces with flexible options allows you to incorporate live streaming and live events, discussions forums, profiles of members, chat and messaging, and more!
It is possible to charge one of the 135 currencies available or earn using token-gating. We've also got an app that works on every device and you could even opt to create an app that is white-label.
Business owners and creators of all stripes have used our powerful program to develop amazing businesses that recur regularly that include Adriene Mishler - YouTube's best-known yoga instructor, Marisa Peer, and Sadie Robertson Huff.
If you'd like to test how you can create Try it yourself! You can try it for free for 14 days. No credit card required.