With many businesses, on the 1st day of the month, revenue starts at £0. This places an enormous strain at so many different levels.  Cash flow, Sales, Lead Generation… all have to be 100% focused to keep the hamster wheel moving. Now I’m not saying there should not be a laser like focus on new sales but creating ongoing revenue streams brings a very important magic to ANY business.

Continuity pricing models, are different because they are not a one and done transaction. With continuity pricing models you provide a product or service, and then bill the customer, either monthly, quarterly, or yearly until the customer tells you to stop.

By implementing continuity pricing models it allows you to have predictable revenue month after month that increases over time. So at the start of each month, you know how much money you are going to generate that month. Plus, any new business that you add during the month only increases the predictable revenue for the following months also.

Continuity pricing is one of the most transformative strategies you can implement in a business.

The most profitable customer is not a onetime customer, but a customer that knows your business and purchases from you on a regular basis.

Loyal customers buy more often, cost less to serve, and are less sensitive to price.

Continuity business models can come in all shapes and sizes from paid newsletters, and membership sites, coaching models, spas, software, gym memberships, to more specific niche products like the wine of the month club, mobile telephones and TV services. You can even buy dog food using a continuity model.

 

Can you think of other businesses where you pay on an ongoing monthly or quarterly basis?

The sky is limit as to the types of products and services that you can offer that allow you to bill the customer month after month with the only real limitation being your own creativity.

And lastly, recurring revenue is efficient revenue because it is typically higher margin revenue. Because recurring revenues allow you to better utilize your resources in the most efficient manner. Each subsequent customer is more profitable because you are leveraging a scalable resource model.

Not all revenue is created equal. Some revenues are higher quality than others. Recurring revenue is the gift that keeps on giving. Think about ways in which you can deliver value to your customers with offerings that can deliver this type of revenue profile to your company.

Please share your ideas here.

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