6 Repeat Business Strategies to be a hit in 2023 |
What do Netflix, Microsoft, your gas provider, and even your local coffee shop all have in common?
They are all recurring business models that generate revenue. Businesses that are repeated. In other words, customers are still paying each month.
Contrary to those who fight for clients and customers every month, repeat revenue businesses are often able to save time and energy on new clients and can focus more on providing value to existing clients they already have. Repeating revenue provides predictable income, helping you prepare in the near future.
There's something awesome about returning customers. If you design something clients keep returning to, or even willing to pay for every month or year then you've got the formula for success.
In this post in this article, we'll offer you some recurring revenue business concepts. These repeat business ideas can help you create a business that keeps clients coming back month after month and is super successful!
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In this post...
The benefits of recurring revenue
5. Service of subscription (product-led)
What exactly is recurring revenue?
Recurring revenue is where customers are paid again each month and years.
It could be a subscription business or membership company, which typically require regular payments. Your Netflix account is a source of Netflix every month regardless of whether you shared the password with your cousin in Idaho.
Perhaps, it's just indicate that you've established a brand that your customers continue to return to, such as Starbucks. These types of repeat purchases also generate the possibility of recurring income. In addition, the more frequently clients return, the more valuable the business.
The benefits of recurring revenue
The recurring revenue model is at the heart of some of the most profitable businesses around the globe. When we started this post, we discussed about businesses such as Microsoft. At the time, you used to buy Microsoft Office in a box. Then you paid once and installed the CD-ROM on your PC (are we joking here? ).
Then, you'll probably download it and pay a yearly fee. But unlike the $150 CD-ROM that you probably used at least once every 5 years, and shared with all your acquaintances, by turning their software into recurring revenue - where you pay $100 a every year Microsoft can make even more.
This is why more revenue is one of the benefits from a business that reinvests in its revenue. Here are some others:
- Lower CPA. Each business must to think about its CPA (cost per acquisition of a client. Businesses that earn recurring revenue don't have to continually resell the same clients.
- Its scalability. Recurring revenue provides the ultimate scalability. If you are able to maintain your churn percentage minimal, you can continue adding new customers to your current customer base. That's business growth!
- Freedom. A Recurring revenue business gives you a solid financial foundation which allows you to focus on delivering an outstanding item or service.
6 Repeat business ideas
1. Community
We are Mighty, we help people create one of the most successful business models for recurring income: community .
The membership communities are a good thing. On the human level, this is because we all crave connection and significance. By joining in a community online, we will discover something we value as well as meet other people who we feel passionate about.
However, the business aspect of community is pretty dang awesome too.
Imagine that you have a business that you start for next to zero and then grow to 100,000 a month. We've seen it.
Community memberships can be a powerful recurring revenue business.
In order to start a community, you'll identify an Ideal Member and a Big purpose. Choose a community platform , such as Mighty which will allow you to create and manage your community. You can also add your personal identity and the items you'll require to market. Then, you're going to race.
Based on our studies We've found that the communities that charge for membership do better. They have more engaged members and are more successful.
This happens because consumers value the things they are paying for.
Community examples that are recurring revenue companies:
2. Retainer plans
Another recurring revenue business is one that is based on retainers. These are typically associated with firms that provide advice to others, but probably the most well-known is using lawyers.
A retainer-based business means that a company will pay your business a set amount every month to provide specific services. If the services continue to be provided, you've created an underlying source of revenue that is recurring.
The business of retaining clients is often not considered as viable business models, but they can be very profitable. If your company provides digital marketing solutions to 10 businesses, charging them each $5k per month, you have an agency making 50k a month!
You get to focus on what you do well and create a successful business around the expertise you have developed. Your company will benefit of the expertise you have built up, without the need to employ an employee to do this task.
A few examples of retainer-based business revenue:
- Lawyers
- Bookkeeping
- The digital marketing
- Creation of content
- Financial advisor
3. SaaS
One of the sexiest businesses that generate recurring revenue is known as SaaS which is software as an service.
SaaS businesses provide their customers with a piece of software to make their lives simpler. As a result, the user pays a regular fee to access the software.
The example was discussed in the context that we discussed of Microsoft Office above. Technically, that part of Microsoft works on a SaaS model. Consider companies such as QuickBooks, Adobe, Evernote, Zoom, and Dropbox. These are all companies that provide software as a services.
In fact, it's a SaaS company. We provide creators and businesses with the tools to create communities and courses, as well as content and even commerce. In the return, we pay our users an annual fee.
In the past, you'd have to know how to code to create the SaaS business. Given the lack of software and the white-label possibilities that are available, it's feasible to have the SaaS business in operation - using a bootstrap-style budget
Illustrations of SaaS recurring revenue businesses:
- Dropbox
- Microsoft
- Evernote
- QuickBooks
- Adobe
- Mighty
4. Local businesses
Transitioning away from SaaS firms that are able to reach the world, let's think about one of our local repeat idea business models A local business that is a member.
Yep, if you look through your city there are various local membership businesses. Most obvious is the gym. it costs you monthly for access to their facilities.
There are many ways to get against businesses that recur in the form of dance studios, yoga classes, children's sports or music classes. Every one of these companies offers products or services that you pay for frequently.
Or, look at the local cafe or masseuse for repeat purchase businesses. These businesses don't operate on an underlying membership system, but customers keep coming returning time and time often.
If you're looking to establish a local repeat business, review what customers in your town pay for. What's missing? How do you build a business that people will come back to time and time
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 can be another option to come up with recurring revenue business concepts. The majority of us pay for of premium services like think Netflix and Disney +.
There are lots of subscription-based businesses that are successful in a lesser scale. The popularity of Substack led to an increase in subscription-based newsletters. The mailer Convertkit jumped on that bandwagon as well.
What about an online subscription that is based on a product? If you've ever sunk your money into the wine-of-the month club, then or even a wine-of-the-month club, you've experienced one. From whiskey to razors, books, food and underwear, there are lots of possibilities
Examples of subscription-based recurring income businesses:
- Wine club
- Artsnacks mix
- The Book that was published in the month
- Hello Fresh
6. Licensing model
Licenses are another of those recurring revenue business ideas that's not as widely known. With a licensing business, you own some type of intellectual property or patent. Your customers then pay recurring revenue to get access to this.
In the year 2000 during the time that Taylor Swift famously re-recorded her debut records, the singer did so to get around one simple issue: somebody else owned her music. Her label had the licensing rights to her music and was making every penny from it.
Franchising is not identical to licensing, however it is very closely linked. If you buy an McDonald's restaurant, you are paying to use the trademark. As a result, the head office gets to tell the customer how to decorate their restaurant and which cups you should use.
You also get a proven company name, with an established track record of achievement as well as instant brand recognition when your eager customers drive through.
McDonald's headquarters - which is the main office, not your neighborhood restaurant - operates on an arrangement for licensing.
If you want to start your own licensing company it is necessary to have any kind of intellectual property or brand. After that then, you are able to convince others to buy your rights to use it.
Are you ready to begin?
If you're thinking of a recurring revenue model you're working on, we hope this article will be of help. There's plenty of repeat-based business concepts out on the market, along with a plethora of profitable ones. Make sure you are playing the right cards and yours might be next!
If you're developing the business of a subscription or membership, come build using Mighty! Our robust software for culture allows you to mix communities, content, classes as well as commerce. And with our Spaces with flexible options it is possible to mix live streaming and live events, discussions forums, profile profiles for members, chat and messaging, as well as more!
The app allows you to make payments in one of the 135 currencies available or earn using token-gating. And we've got a great app that works on every device and you could even opt to get an app that is white-label.
Creators and business owners of all stripes have used our powerful program to develop amazing businesses that recur regularly, including Adriene Mishler - YouTube's best-known yoga instructor, Marisa Peer, and the Sadie Robertson Huff.
If you're interested in seeing how you can create Try it yourself! It's free to try for 14 days. No need for a credit card.