6 Repeat Business Ideas to Rock 2023 |
What does Netflix, Microsoft, your gas provider, and even the local cafe all have something in common?
All of them are recurring business models that generate revenue. Repeat businesses. As in, people are still paying month after month.
In contrast to the average suckers that fight for clients and customers every month, repeat-income businesses are often able to save energy and time on customers and instead focus on providing value to the customers they already have. The recurring revenue model provides predictable income, helping you to plan in the near future.
There's something awesome about returning customers. When you build something that people keep coming back to, or even willing to pay for every month or year, you've got a recipe for profitability.
In this post in this article, we'll offer you some business concepts. These ideas for recurring business will help you design a business that keeps clients coming back month after month and is super successful!
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In this post...
What exactly is recurring revenue?
The benefits of recurring revenue
5. Service of subscription (product-led)
What is recurring income?
Recurring revenue happens where customers are paid again and again over months and years.
This could be a subscription business or membership business, these generally require regular monthly payments. Your Netflix account pays Netflix regular revenue regardless of whether you shared the password with your cousin from Idaho.
Perhaps, it's just mean you've built a business that your customers continue to return to, such as Starbucks. Repeat purchase businesses also create the possibility of recurring income. In addition, the more frequently customers return to the business, the more valuable the business.
Benefits of recurring revenue
Recurring revenue is the foundation of many of the top-performing businesses around the globe. At the intro to this post, we discussed about organizations like Microsoft. Back in the day when you bought Microsoft Office in a box. Then you paid once and put the CD-ROM in your computer (are we dating ourselves here? ).
You probably now download it and pay an annual cost. However, unlike the CD-ROM for $150 that you probably used at least once every 5 years, and shared with all your friends and family, by turning their software into an ongoing revenue stream - that is, you pay $100 each year , Microsoft can make even more.
It's among the advantages of a recurring revenue business. These are a few more:
- Lower CPA. Each business must to think about its CPA (cost per acquisition of a client. Businesses that earn recurring revenue don't have to keep reacquiring the same clients.
- Its scalability. Recurring revenue gives you the ultimate scalability. If you can maintain your churn percentage low, you will continue to add new customers to your current customer base. It's growth for your business!
- Freedom. A repeating revenue company can provide you a solid financial foundation which allows you to concentrate on providing the best item or service.
6 Ideas for repeat business
1. Community
Here at Mighty, we help people build one of the greatest business models for recurring income: community .
The membership communities are a good thing. At a human level, this is because we all crave the connection we feel and the meaning. Through joining an online community, we will discover something we value as well as meet other people who we feel passionate about.
However, the business aspect of community is quite awesome too.
Imagine that you have a business that you create for zero and then grow to 100,000 a month. It's happened.
Community memberships are an extremely profitable recurring revenue venture.
For a community to be established it is essential to identify the ideal member and an important Purpose. Select a good community platform , such as Mighty which will allow you to create and manage your community, adding your own identity and the items you'll have to sell. Then, you're off to the races.
Through our study we've observed that community who charge membership fees do better. They're more socially engaged and are more successful.
This is due to the fact that consumers value the things they are paying for.
Communities with recurring revenue business models:
2. Plans for retention
Another type of business that is recurring is a retainer-based business. It is typically seen in businesses that work advising others, but probably the most well-known is using lawyers.
Retainer-based businesses mean that a company will pay your business a set sum each month for a certain type of services. If the services continue to be provided, you've created an underlying source of revenue that is recurring.
The business of retaining clients is often not considered as viable business options, but they can be very profitable. If your company provides digital marketing services to 10 firms that charge them every five thousand dollars per month, you have an agency making 50k a month!
It is possible to concentrate on the things you excel at and then build a company around your expertise. A company gets the benefit of the expertise you have built up, without having to hire someone to perform the job.
Recurring income businesses:
- Lawyers
- Bookkeeping
- Digital marketing
- Content creation
- Financial advisor
3. SaaS
A single of the sexiest recurring revenue business models is SaaS which is software as an service.
SaaS businesses provide their customers with software that helps make their life more convenient. In return, the customer pays a regular fee to use that software.
We discussed the example that we discussed of Microsoft Office above. The technical aspect of Microsoft is based with a SaaS model. Consider companies such as QuickBooks, Adobe, Evernote, Zoom, and Dropbox. All of these companies offer software as a service.
In fact, it's a SaaS business. We provide creators and businesses with the tools to create communities classes, online content and even commerce. In return, our members pay a flat monthly fee.
In the past, that you had to be able to code in order to build the SaaS business. Given the lack of software and the white-label possibilities that are out there, it's definitely doable to get a SaaS business operating - even on a bootstrap budget
Exemples of SaaS business models that generate recurring revenue:
- Dropbox
- Microsoft
- Evernote
- QuickBooks
- Adobe
- Mighty
4. Local businesses
Moving away from SaaS businesses that span the world, let's talk about the local version of one of our idea business models Local membership businesses.
Yep, if you look at your local area you'll see various local businesses that offer membership. Most obvious is the gym, where members pay per month to use their facilities.
You may have bumped up against businesses that recur that offer yoga studios, dance classes, sports for kids, or music classes. These businesses offer a product or a service which you typically pay frequently.
Take a look at the local cafe or masseuse for businesses with a repeat-purchase policy. These businesses don't operate on a membership model however, customers come to them again and repeatedly.
If you're looking to establish your own local repeat business take stock of what people within your community pay for. What's missing? What can you do to create an enterprise that customers will keep coming back to again and repeatedly?
Examples of local companies that are repeat clients:
- Gym
- Yoga studio
- Bouldering cave
- Play cafe
- Hair salon
- Cafe shop
5. Subscription service (product-led)
Subscription services can be another option for recurring revenue business ideas. The majority of us pay for of high-end subscription services, think Netflix or Disney +.>
But there are a lot of subscription companies that are doing very well on a smaller level. The popularity of Substack has led to an increase of paid newsletters, and the email provider Convertkit jumped on that bandwagon as well.
Perhaps a product-based subscription service? If you've ever paid an alcohol-of-the-month subscription, you've probably tried one of these. From razors to whiskey to food , books and even underwear, there are lots of choices
A few examples of subscription-based business revenue:
- Wine club
- Artsnacks mix
- The Book that was published in the month
- Hello Fresh
6. Model of licensing
Licenses are another of those business ideas that's not as well known. Through a licensing company you have some kind of patent or intellectual property. Your customers then pay recurring income to access that.
The year before in the year that Taylor Swift famously re-recorded her first records, the singer did so to avoid a single problem: someone had the right to her music. The label she was working with had licensing rights to the songs and made profits on the entire album.
Franchising is not identical to licensing, but it's very closely linked. When you purchase an McDonald's restaurant, you're paying to use the brand name. The head office gets to tell the customer how to decorate their restaurant and what type of cups to choose.
But you receive a trusted brand name that has successful track records as well as instant name recognition as eager customers drive by.
McDonald's headquarters - which is the main office, not the local restaurant, operates under the basis of a licensing system.
If you want to start your own licensing company, you need to own any kind of intellectual trademark or. After that this, it is possible to get other companies to buy your rights to use it.
Ready to start?
Whatever model for recurring revenue you've got cooking up, we hope this article has helped. There are a lot of repeat business ideas out in the world, as well as a lot of proven models. If you play your cards well, yours might be next!
And if you're building the business of a subscription or membership make sure you build using Mighty! Our powerful software platform for cultural content allows you to mix the world of community, content, course as well as commerce. In addition, with our flexible Spaces, you can mix in live streaming events, live streaming, discussion forums, profiles of members chat and messaging and much more!
You can charge in various currencies, or even monetize by token-gating. There's a fantastic app that works on every device and you could even opt to create an app that is white-label.
Entrepreneurs and entrepreneurs across all kinds have used our powerful software to build incredible businesses with recurring revenue such as Adriene Mishler - YouTube's best-known yoga instructor, Marisa Peer, and Sadie Robertson Huff.
If you're interested in seeing what you can build, come try it out! Try it free for 14 days. No credit card required.