PASSIVE INCOME: WHY RECURRING INCOME IS CRUCIAL FOR THE SUCCESS OF YOUR BUSINESS.
If there were a top 10 list of factors guaranteed to boost efficiency and sustainability in the 21st-century business ecosphere, recurring income would rank at the very top. Companies looking to thrive in today’s world can no longer afford to depend on transactional (one time) revenues. Unlike one time transactions, recurring revenues bring in much-needed stability to your business and streamlines your cash flow, making it easy to project growth.
Recurring income is the process of collecting a specific amount of money for a product or service delivered to a particular number of clients for a defined period. This approach is based primarily on the subscription model where we see services such as software services, content streaming services and gym memberships. Recurring incomes also frequently occurs from membership sites or affiliate commissions.
Why recurring income is so important
In one time transactions, there could be lots of loose ends; monthly sales might be low, or clients may not pay up on time, and this ultimately leads to uncertainty, as well as difficulty in balancing your books. One good reason to Introduce the recurrent income model to your business is the increased level of financial security guaranteed to your business; since the catastrophic effects of situations such as losing a client or late payments will be less.
Can any company adopt a recurring income model?
Yes! Any business with viable products, services, or programs can adopt the recurring income model whether they have a physical location or is based online. Let's take a virtual assistant for instance; while handling the affairs of her clients; she could set up a training site to help those seeking to learn the virtual assistance business and have them subscribe for membership. Although she has to take on the task of creating all the training in advance, the process becomes semi-automated after that, and all she need do is focus on pleasing her trainees as well as playing the role of a mentor.
An excellent example of recurring income model is group business coaching program. This is where you pay for the coaching on a monthly basis. A Netflix subscription or an anti-virus subscription are also good examples of the model.
It is important not to think as recurring income as a ‘hit it and quit’ scheme. To make the model work for you; you have to be proactive in keeping your customers satisfied with products or services. Keep figuring out what they want, keep modifying your products and keep making them happy. Slacking off for even a month may mean losing clients to competitors, and losing recurring income.
Don’t wait, create your recurring income model right away!
At Dream Team Virtual Assistant LLC, we have a tailor-made 'Passive Income Planner’ just for your business. Our Passive Income Planner is the perfect toolkit you need to create an efficient recurring passive income stream.
In this planner it will map out everything you need to know about how to setup, maintain and execute recurring income for your business.
Not only will the Passive Income Planner educate you, but you can use it to teach in your coaching program. Trust me; with our Passive Income Planner you have nothing to lose!
Let’s brainstorm a passive income plan together and see where we can streamline your business.
We help Business Coaches, Consultants, and Service Professionals brand & market their services so they can have a successful and profitable business they can be proud of.