I’m going to show you what a Recurring Revenue Model is, how it works and why it’s so valuable for your business. My name is Doug Barra. And today, we’re going to talk about what a recurring revenue model actually is. A lot of people don’t know the benefits of one because they think it’s too complicated or that it’s only for big businesses who are making millions, but in reality, almost anyone can use a recurring revenue model to make extra money on an ongoing basis, with just a little bit of effort.
Let’s start with a recurring revenue model, what it is. Basically, any business model that has your customers paying a regular fee, or we like to say investment for your product or service is a recurring revenue model.
If you think about Netflix, you pay a monthly fee to get access to the platform, to watch movies and videos. And there are some less obvious forms like signing up for Amazon Prime or for the premium version of Instacart, where you are paying a recurring charge to get extra perks. Another version of a recurring revenue is software as a service, or SAS, think Office365 or QuickBooks online.
Why would you want to have a recurring revenue model either as your basic business model, think Netflix, or as a portion of your business, think Amazon Prime? Well, because it provides you a consistency to your revenue. You can count on revenues coming in on a regular basis.
This is especially important in a down economy when people will stop spending but usually won’t start canceling their memberships. Especially if that membership is providing value to them, during this pandemic, many people are looking for ways to either learn or be entertained.
This is why so many online entrepreneurs are thriving right now. What does this mean to you? How do you incorporate a recurring revenue model into your business or create a new recurring revenue model business?
Of course, this will depend on your current model or what you like to do. One way is to add a membership component to your business. This can look like taking a portion of your business that relates to learning or some resources that you can provide and making that into a membership site. Maybe you want to add a component where you teach others how to do what you do.
Since you are watching this video, I’m going to assume that you are interested in getting something up and running soon, so I’m not going to talk about creating the next software sensation. Even though that is a very viable option, it will take a large amount of investment in time and money. The fastest way, and most economical method, in my opinion, is to create a membership site. A membership site can be as simple as the access to your training modules or access to exclusive content or resources.
It can also be a private community where you provide ongoing services. It can be mostly static content or completely dynamic. It all depends on what you want to provide. Now I have to let you know that there are many ways to create membership sites. It can be as difficult as having to create everything yourself from scratch, programming every page, every interaction to using a membership site creation platform that does everything for you, except create the content itself.
Now there are even some people who claim they will even give you the content for a complete done for you product. I recommend that you learn as much as you can about some of the different options, so you can make an informed choice.
There is one person that I trust in this world of membership sites, my mentor, Stu McLaren. He taught me most of what I know about membership sites and is the reason my site works so well for my people. There is another piece to this puzzle. You have to make sure that your offering is going to be sustainable and profitable. I’ve included a link in the description of this video or in a comment depending on where you’re watching it, to get more information about doing this for your business.
Click that link now to start building your recurring revenue model business today. I’m committed to bringing you quality videos on a regular basis that provide massive value.
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