6 Repeat Business Tips to make 2023 a roaring success |
What do Netflix, Microsoft, your gas company, and the local cafe all have in common?
These are all repeat revenue businesses. Businesses that are repeated. In other words, customers keep paying them month after month.
In contrast to the average suckers that struggle for customers and clients each month, repeat revenue businesses can often spend less time and energy on new customer acquisition and focus on providing value to existing customers they have. Recurring revenue gives you a predictable income, helping you prepare for the future.
There's something awesome about returning customers. If you design something customers keep coming back to, or are willing to invest in at least once a year or month and year, you've created a formula for success.
In this article, we're going to give you some business suggestions. These repeat business ideas can help you create a business that keeps customers month after month, and is super lucrative!
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In this post...
5. Subscription service (product-led)
What is recurring revenue?
Recurring revenue is where customers are paid again each month and years.
It could be a subscription or membership business, these generally require regular monthly payments. You Netflix account will pay Netflix every month regardless of whether you shared the password with your cousin who lives in Idaho.
Or, it could just mean you've built a business which customers come back to, such as Starbucks. Repeat purchase businesses also create regular revenue. And the more frequently the clients return to purchase from them, the better value the company.
Recurring revenue benefits
Recurring revenue forms the basis of some of the most profitable businesses around the globe. When we started this article, we talked about businesses similar to Microsoft. Back in the day there was a time when you could purchase Microsoft Office in a box. Then you paid once and installed the CD-ROM on your computer (are you sinning here? ).
Now, you probably install it, and then pay a yearly fee. It's not like the $150 CD-ROM that you may have used just at least once every 5 years, and then shared with your colleagues, by turning their software into an ongoing revenue stream - where you pay $100 a every year Microsoft is able to earn more.
That's why increased revenue is one of the benefits of running a business with recurring revenue. These are a few more:
- Lower CPA. Each business must to consider its CPA (cost per acquiring a customer. Businesses that earn recurring revenue don't have to continually resell the same customers.
- The ability to scale. Recurring revenue offers the most scalability. If you manage to keep your churn rates low, you will continue to add new customers to your current customers. This is business growth!
- freedom. A recurring revenue business can give you a solid financial foundation that frees you up to deliver a great item or service.
6 Ideas for repeat business
1. Community
We are Mighty we assist people to develop one of the best recurring revenue businesses out there: community .
The membership communities are a good thing. On the human level it is because we all crave the connection we feel and the sense of. When we join an online group, we will discover something we value as well as meet other people who we feel passionate about.
The business side of the community can be pretty cool too.
Imagine a business you could start for next to nothing and scale to $100,000 a month. It's happened.
Community memberships can be an extremely profitable recurring revenue venture.
For a community to be established it is essential to identify the Ideal Member and a Big Purpose. Select a good community platform like Mighty that allows you to create and manage your community, adding your own brand and everything you need to sell. Then, you're off to the races.
From our research we've observed that community that charge for membership do better. They have more engaged members as well as are more profitable.
This is because consumers value the things they are paying for.
Community examples as recurring revenue businesses:
2. Retainers plans
Another type of business that is recurring is a retainer-based business. It is typically seen in companies that advise other companies, and probably most famously working with lawyers.
A business that is based on a retainer means that the company pays the company a certain monthly amount to offer a certain type of services. If the services run continuously, then you've established the foundation for recurring income.
Retainer businesses are often overlooked as viable business options however, they could be really lucrative. If your company provides digital marketing services to 10 companies and charges them $5k per month, then you are an agency making 50k a month!
It is possible to concentrate on your strengths and then build a company around your expertise. Your company will benefit of your business's expertise, without having to hire an employee to do this task.
Recurring business revenue:
- Lawyers
- Bookkeeping
- Marketing via digital
- Content creation
- Financial advisor
3. SaaS
One of the most attractive model of recurring revenue businesses is known as SaaS - that means, software as a service.
SaaS businesses provide their customers with some sort of software that makes their life more convenient. The customer has to pay a fee each month for the use of that program.
We have discussed the case of Microsoft Office above. It is true that Microsoft works with the SaaS model. Consider companies such as QuickBooks, Adobe, Evernote, Zoom, and Dropbox. They are all businesses that provide software as a services.
It's actually in fact, a SaaS company. We give businesses and creators the software to build community, courses, content, and even commerce. In return, our members pay the monthly cost in one lump sum.
In the past, you needed to learn how to program to start an SaaS business. With the amount of no code and white-label options that are available, it's possible to set up a SaaS business operating - even on a bootstrap budget
Examples of SaaS business models that generate recurring revenue:
- Dropbox
- Microsoft
- Evernote
- QuickBooks
- Adobe
- Mighty
4. Local businesses
The transition away from SaaS firms that are able to reach the world, let's think about the local version of one of our business concepts A local business that is a member.
Yes, if you glance at your local area you'll see all sorts of local business that are based on membership. Most obvious is the gym. you pay monthly to access their facilities.
It is possible that you have been bumped against recurring revenue businesses in the form of yoga studios, dance classes, sports for kids, or music lessons. These businesses offer either a product or service which you typically pay regular fees.
You can also look up the coffee shops and masseuse or hairdresser for businesses with a repeat-purchase policy. They don't work on an underlying membership system however, customers come back again and again.
If you'd like to begin an established local business look at what the people within your community pay for. What's missing? And how can you create something that your customers come back to time and repeatedly?
Exemples of local companies that are repeat clients:
- Gym
- Yoga studio
- Bouldering cave
- Play Cafe
- Hair salon
- Cafe shop
5. Service of subscription (product-led)
Subscription services are another idea for business models that generate recurring revenues. There are a variety of premium subscription services. consider Netflix as well as Disney +.>
But there are a lot of subscription companies that are doing very well in a lesser level. The growth of Substack has led to an increase of paid newsletters, and the mailer Convertkit has joined in as well.
What about the possibility of a subscription-based product? If you've ever sunk your money into a wine-of-the-month club, you've probably tried one of these. From whiskey to razors, food , books and even underwear, there's a wide range of choices
A few examples of subscription-based business revenue:
- Wine club
- Artsnacks mix
- Book of the Month
- Hello Fresh
6. Model of licensing
Licensing is another one of the recurring revenue business ideas that's not as popular. Through a licensing company you have some kind of intellectual property , or patent. Customers then pay fees to gain access to this.
The year before during the time that Taylor Swift famously re-recorded her debut albums, she did so to get around one simple issue: someone else owned her music. Her label owned the license rights to the songs and made all the money on it.
The process of franchising isn't the same as licensing, however it is very closely linked. When you purchase a McDonald's restaurant, you are paying to use the trademark. The corporate headquarters is able to instruct you how to decorate and which cups to choose.
But you get a proven company name, with successful track records and branding recognition whenever hungry customers are driving by.
McDonald's The head office, not the local restaurant, operates under an arrangement for licensing.
If you are planning to begin an enterprise of licensing, you need to own an intellectual product or brand. When you have it this, it is possible to get other companies to pay you to use the.
Are you ready to begin?
Whatever recurring revenue business model that you've come up with We hope that this post has helped. There's plenty of repeat business ideas out on the market, along with a plethora of profitable models. If you play your cards well, yours might be next!
If you're in the process of building a membership or subscription business, come build using Mighty! Our robust software for culture allows you to mix community, content, courses and even commerce. With our flexible Spaces it is possible to mix live streaming and live events, discussions forums, profile profiles for members Chat and messaging and much more!
You can charge in one of the 135 currencies available or earn with token-gating. We've also got an application for all devices, or you can even choose to get an app that is white-label.
Business owners and creators across all kinds have used our powerful program to develop awesome recurring revenue businesses, including Adriene Mishler - YouTube's best-known yoga instructor Marisa Peer, and Sadie Robertson Huff.
If you're interested in seeing the possibilities of what you could build, come try it out! Try it free for 14 days, no credit card required.