There are many different types of recurring revenue businesses, and each has its own unique set of advantages and challenges. This article will discuss the ten best recurring revenue business ideas to try today.
If you’re looking for a business idea that will provide reliable income month after month, you should consider starting a recurring revenue business. These businesses are ones where customers pay you on a regular basis, usually through a subscription or billing model.
What is Recurring Revenue?
For starters, let’s first get clear on what recurring revenue is—and what it isn’t. That way, people who are new to the concept will have a good foundation to start from.
Recurring revenue is defined as money that comes into your business on a regular basis. You can receive payments daily, weekly, monthly, or even yearly.
With a recurring revenue model, businesses can predict their revenue and the growth of their business. In addition, tracking membership metrics with a recurring billing software will enable you to predict next month’s revenue.
However, keep in mind that recurring billing isn’t a “set it and forget it” type of billing concept. You will still need to put in the effort to acquire new customers and keep your current ones happy.
The key recurring revenue business model characteristic is that you provide a service or product to your customer, and they pay you for it on an ongoing basis.
Benefits of a Recurring Revenue Business Model
Recurring billing is more than the obvious perk of “make more money consistently.” It also opens up new opportunities and advantages for your business. With that said, here are some notable benefits of recurring revenue:
Focus More on Providing Quality Customer Service
Since your customers are already paying you on a regular basis, your recurring revenue business is more focused on providing quality customer service that keeps them happy and coming back rather than acquiring new customers.
Predictable Cash Flow
As mentioned earlier, recurring revenue is much more predictable than one-time sales. This means that you can better forecast your expenses and have a clear idea of when you need to invest in more inventory or hire new staff.
Scalability
With a recurring revenue model, your business is more scalable because you’re not as reliant on acquiring new customers to grow your business. Instead, you can focus on keeping your current customers happy and expanding the services you offer to them.
Reduced Cost
Recurring revenue helps reduce marketing and sales costs since you do not constantly have to acquire new customers. You can serve your current revenue streams with recurring revenue instead of going out and trying to pitch to new customers.
Now that we’ve gone over what recurring revenue is and some of its benefits, let’s look at the best recurring revenue business ideas to try today.
The 10 Best Recurring Revenue Business Ideas To Try Today
There are a variety of ways to generate recurring revenue for your business. To help you get started, here are ten simple yet effective ideas:
Client Retainer Agreements or Service Plans
Retainer agreements or service plans are great for generating recurring revenue for business owners with products or services that require regular renewal. In addition, you can pitch to your existing customers without using expensive advertising and marketing tactics.
This recurring revenue business idea is also excellent if your customers regularly need your product or service. For example, if you own a software company, you can offer your customers an annual subscription to your service instead of selling it to them as a one-time purchase.
Recurring Revenue with Advertising
If you have a popular website or blog, you can generate recurring revenue by selling advertising space on your site. For example, you can offer ad space to companies every month and give them the option to renew their contract each month or year.
While this is a great way to generate recurring revenue, it’s also an excellent way to build long-term relationships with companies in your industry.
Sell Gift Cards or Physical Products
Another great recurring revenue business idea is to sell gift cards or physical products. For example, if you own a spa, you can sell gift cards that can be used for future services.
Or, if you have a clothing store, you could sell physical items like hats, scarves, and gloves that need to be replaced regularly.
Create a Membership Site
If you have expertise in a certain area, you can create a membership site where people can pay to access exclusive content or receive discounts on products and services.
This is an excellent recurring revenue business idea for those who want to generate income from their knowledge and experience. Plus, it’s a great way to build a community of like-minded individuals.
Sell Subscriptions to Your Online Course
If you have an online course, you can sell subscriptions to it monthly or annually. This is a great recurring revenue business idea for those who want to generate income from their online courses that share their knowledge and expertise. Plus, it’s a great way to build a community of like-minded individuals.
Software as a Service (SaaS) Offering
Another idea for generating recurring revenue is offering software in exchange for a monthly or annual subscription. Notable tech giants like Microsoft and Adobe abandoned their previous one-off selling strategy and switched to recurring revenue models, and so can you.
So if you have a piece of software, the current trends suggest that you sell it as a subscription product since it will give you more freedom and time to improve the software over time. It will also give you the chance to understand what your clients need so you can continue improving your software in that direction.
Affiliate Marketing
Affiliate marketing has been around for quite some time, and it’s still one of the most popular recurring revenue business ideas today. The basic premise is that you promote other people’s products or services on your website or blog, and in return, you earn a commission on every sale you generate.
This is a great way to generate recurring revenue because you only get paid when you make a sale. Plus, it’s a great way to build relationships with companies in your industry.
Physical Product Subscriptions
Once upon a time, Dollar Shave Club was considered nothing more than a gimmick. But it quickly shifted the balance of the entire shaving industry by selling physical product subscriptions.
The company sells razors and other shaving products monthly or annually, and it has quickly become one of the most popular recurring revenue business ideas in recent years.
If you’re selling a product that your customers are regularly using, they’re more likely to be interested in subscribing to a recurring delivery. So they never have to worry about running out of the product again.
Online Membership & Physical Product Delivery Combo
For a more convenient customer experience, you can combine both membership and physical product delivery programs. Here’s an idea of how you can do it:
- Set up and grow a community around your niche.
- Provide content and education
- Bundle both with a physical product.
For example, suppose you’re in the business of selling health supplements. In that case, you could create a recurring revenue business model by setting up a membership program where people can access exclusive content and receive discounts on products. Members also get monthly e-books or physical products delivered to their doorsteps.
Peace of Mind Products & Services
In most cases, your clients are worried about one or more things. As a service provider, your brand can help solve their concerns and get paid for them on a recurring basis.
For example, if you own a pet sitting business, your clients are likely worried about their pets while they’re away. So you can offer a recurring service that includes daily check-ins, walks, and feeding.
This is a great way to minimize the problems and fears of your clients. But, at the same time, you generate recurring revenue because you’re providing a service that gives your clients peace of mind. They know that their pets are in good hands, and they don’t have to worry about anything while they’re away.
Why Use ReliaBills?
If you’re planning to switch to a recurring revenue billing model, you’ll need to use the right software to help streamline the process. ReliaBills is the perfect recurring billing solution for small businesses.
ReliaBills makes it easy to set up recurring payments, manage customer information, and track your revenue. We have the whole recurring billing package where you can set up, run, monitor, and optimize your recurring revenue business – all in one place.
When you upgrade to ReliaBills PLUS ($24.95/mo), you’ll have access to all the features you need to set up recurring billing for your business.
Plus, ReliaBills also integrates with QuickBooks to keep track of your finances in one place. For more information about ReliaBIlls and its recurring billing services.
Try ReliaBills today and see how easy it is to switch to recurring revenue and take your business to the next level!
Wrapping Up
There are many recurring revenue business ideas that you can try today. These are just a few recurring revenue business ideas to get you started. So, which one will you choose? Whatever it may be, make sure to pick one that best suits your skills and experience. If you implement even just one of these ideas, you’ll be well on your way to generating predictable and reliable income for your business. Good luck!
