Businesses Recurring Revenue Streams – Here’s How to Start

Did you know that you need recurring revenue streams for your business?

The same advice for building a healthy investment portfolio applies to your business: diversifying will lower risk and increase growth.

Adding a recurring revenue stream (or a few) can provide an ongoing source of income. This ongoing source of income will help to increase profits and provide a buffer for any unexpected sales dips.

Here are four simple ways to start earning recurring revenue for your small business.

Auto-renew subscriptions

The most tried and true recurring revenue model? The subscription that automatically rolls over each month unless canceled.

Examples of auto-renew subscriptions? Newspapers, magazines, Netflix, and those subscription boxes that arrive each month. Customers depend on their subscription services because they tend to make their lives easier or better.  If your customers are getting value for their money, they won’t give the small subscription fee a second thought.

Tips for getting started: Research what your competitors are offering, and talk to your customers about the kinds of products and services they’d be happy to pay for on a monthly basis.

Membership sites

As an expert in your field, a membership site can provide a great opportunity to serve more clients and earn more income.

Your membership site can offer your clients an online community portal where they can socialize and connect with you for group mentoring outside your office hours.

Membership sites are ideal for location-independent entrepreneurs, coaches, and consultants, allowing them the freedom to serve clients all over the world.

Tips for getting started: If your website is built on WordPress there are a number of membership site plugins available to let you accept secure credit card payments and provide member-only access to certain content.

Affiliate subscriptions

Unlike set monthly subscriptions, being an affiliate may offer a less predictable income stream, but, it is still an opportunity to earn some passive income.

Affiliate subscriptions will allow you, as a brand ambassador to get paid for each successful referral. If you’ve built credibility and trust in your brand, some of your customers will be willing to pay for the products and services you recommend.

How to get started: Make a list of the businesses that you regularly buy from. Check each company’s website to learn how to become an affiliate.

Final thoughts on recurring revenue streams

In addition to increasing sales and profit margins, recurring revenue can lead to better customer retention, as well as greater growth for your business.

Make sure that you are accounting for recurring revenue stream the correct way, talk to C2 Accounting for advice.

Now that you know a bit about recurring revenue streams, which model is right for you?