Generating recurring business income is easier than you think.
With the right model, you can establish a reliable source of recurring income and give your business an extra boost. And we’re going to show you how.
Ahead, we’ll define what we mean when we say “recurring revenue” or “recurring income.” Then, we’ll get into the benefits of recurring revenue, and show you the easiest ways to generate reliable sources of recurring income for your business, whether you’re established or starting from scratch.
Let’s dive in.
What is Recurring Revenue?
Recurring revenue or recurring income is when a customer purchases a service on a consistent basis, whether it’s weekly, monthly, or annually. Recurring revenue model examples include Netflix, paid memberships, and software-as-a-service subscriptions.
Why is recurring revenue important? Because it offers some major benefits for businesses—whether they’re big or small.
What are the Benefits of Recurring Revenue?
Recurring business income is beneficial in three key ways.
Recurring revenue lets you focus on the customer. Recurring income is essentially a direct transaction between you and your customer. That means you can (and should!) focus directly on them, and use their ideas and feedback to make your business better. In turn, you’re able to create an experience so valuable that they’ll keep coming back and they’ll keep their subscription active over time.
With a recurring revenue model, your income is way more predictable. Recurring revenue streams enable businesses to work smarter, not harder. You’ll get consistent, predictable revenue month after month, year after year.
Recurring income products can boost your business’s growth. The easiest way to kick off a new business is to start small. With recurring income products, you can create a valuable subscription that gets results for ten of your most motivated customers to start. Then, when you’re ready, you can build toward a bigger, better offering down the line.
Now that we’ve talked about the benefits of recurring revenue, let’s explore some popular types of recurring revenue, and how to use them to boost your income.
Recurring Revenue Model Example #1: Launch a Mastermind Group
Mastermind groups are a popular way of establishing recurring business income.
Masterminds bring together a small committed group of people with shared goals on a regular basis. During weekly or monthly meetings, group members share their goals, workshop new ideas, and get perspective and mentoring from their peers, which allows them to build toward success. In return, they pay recurring monthly dues for access.
Mastermind groups can vary pretty widely. Some groups focus on creating a confidential space for career or professional growth. Others focus on more personal interests: think a mastermind group to support new mothers. No matter the topic, masterminds are an easy way to make recurring income for a set amount of time—they typically run for six months to a year.
Recurring Revenue Model Example #2: Build a Membership Subscription
Another way to make recurring revenue is by building a membership site that delivers exclusive content to its members, who in turn pay a monthly or annual subscription fee.
Depending on the platform you choose, a membership can take different forms. It can be a structured community. It could be a coaching group. Or, it can be an exclusive space to share resources.
No matter the format, all memberships have something in common: they focus on a topic that’s so important, its members want to invest their time in mastering it. So much so, that they’re willing to pay for continued access. And because memberships tend to be long term, they can generate recurring business income for as long as they’re alive.
Recurring Revenue Model Example #3: Run an Online Course + Community
Here’s another option: Bring in recurring income by creating an online course based on a subject you have expertise or experience in. It’s a tried and true approach: People are always looking to learn a new skill, improve on an old one, and meet people who have the same goals and motivations as they do.
Typically, creators charge a one-time fee for an online course. But if you introduce a virtual community alongside your course, you open up the potential for another recurring revenue stream. Here’s how it works: You establish a community, that members pay a monthly fee for access. Within that community, you can create an online course that members can get access to with a one-time fee. It’s the best of both worlds—as long as you can find the right platform.
Recurring Revenue Model Example #4: Start a Mighty Network
Alternatively, you can make recurring income by building a single program—one where you can run mastermind groups, memberships, online courses, and a community—with Mighty Networks.
With your own Mighty Network, you can combine a variety of recurring revenue products, all of which are instantly available on the web, iOS and Android. You can customize an experience for your members and explore multiple ways to generate recurring income. You could:
- Build a course and community, charging a one-time fee for the course, and implementing a recurring revenue model for access to the community
- Create and charge for a recurring membership subscription
- Offer a mastermind group as a part of your membership or community, and charge for monthly access
- Or any combination of the above!
No matter what combination you choose, know this: if you can deliver results and transformation, potential members will pay a subscription fee for access. And if you can do that on a platform that gives you multiple ways to generate recurring income, why wouldn’t you?
How to Make Recurring Income? A Mighty Network
Generating recurring income comes down to creating a high-value experience for your customer that they can’t get anywhere else.
The easiest way to do that? A Mighty Network. You can use a combination of recurring revenue streams to get them the results they’re looking for. In turn, they’ll return to your subscription, boosting your income.
It’s that easy.