Why You Need Recurring Revenue For Your Retirement

Why You Need Recurring Revenue For Your Retirement

In this article we’re going to look at why you need recurring revenue for your retirment versus other kinds of income which are less predictable.

As you embark on your journey of making money online for your retirement, you are going to be presented with different options for how you can bring in those profits. Some of them will require more work than others.

As an online entrepreneur, your goal is not only to generate an income, but one that is predictable and sustains your lifestyle. With a recurring revenue stream, you will get to enjoy ongoing payments that are coming into your bank account (think about the things that you pay for monthly which are expenses to you – mobile phone, cable TV, Netflix etc).  You want to be the person receiving regular monthly payments to help you sustain your retirement lifestlye just like that don’t you?

Once your systems are in place, you’ll get to focus on the generation of new leads as well as customer retention while you slowly scale your business to create more revenue for you. On other words use some of the income (profit) to create other assets that give you recurring revenue.

One of the biggest problems many online entrepreneurs face is that their income has too many fluctuations. One month they are well above their financial goals, and the next month, they’re struggling to meet their basic needs.  This was exactly what we found in our traditional self employed accountancy and management consultancy.  Some months our income was really good and other times not so.

When we began our online business we had a mixture of recurring revenue from the tools and resources we were recommending and some subscriptions that our students would need to run their business such as an autoresponder, a lead page creator etc as well as we were selling what is known as “high ticket” mainly in the education and training sector.

By having a more predictable and steady recurring revenue system in place, you’ll be able to count on a certain amount of money each month, which takes the pressure off of you and allows you to have the retirement lifestyle you want and why you started this online business in the first place.

Below, we are going to dive into the recurring revenue business model, so that you understand what it means, how to develop one of your own and set it up, market it, and then grow it into something more that can contribute to the type of lifestyle you want to lead – just like we do 😀

Different Types of Recurring Revenue Streams

Before we begin talking about how to set one up and plan one, let’s look at the different types of recurring revenue streams you can generate online. There are basically three different forms of recurring revenue.

Subscriptions

The first one is a subscription based model, where people subscribe to your brand through something like a membership where they gain value each month. As long as you are performing for them and meeting their needs they will continue to pay each month.

An example of this is an academy we belong to which teaches marketing – how to get leads and how to convert them.  We earn a monthly commission from our clients and students who purchase this option from us.

The reason many consumers enjoy belonging to an online membership program is because they are a part of a community where they can connect with each other, ask questions of you, and even support each other in their goals.

This is why this is our number one recommendation to our students and clients looking to learn the marketing skills they need for their new online business and they in turn will learn then how to refer this from what we teach them or they decide to learn themselves self study.

The reason we like this is our students and clients like receiving ongoing value from someone they know and trust. They get to look forward to new information such as courses, templates, and other elements of content that meets their needs.

You can also offer different tiers of subscriptions so that people can choose one that fits their budget. When promoting this type of recurring revenue stream, you can offer a free or low cost trial to prove value before they make a commitment and they can get a sneak peek of the type of value that waits for them inside.

Licencing

The second type of recurring revenue business model is licensing. With this type of option, you are going to charge your customers for the right to use a product for a specific period of time, where it renews each month, quarter, or year.

Many online software developers use this type of recurring income model and the price is more attractive for a longer commitment, such as purchasing annual rights rather than monthly.

A common one that you may well have come across is themes or plugins for wordpress websites.

Digital Products

Digital product models with recurring revenue are the third option, and this allows you to bill customers on a regular basis for the use of your product. So if you develop a product that is cloud based, such as storage or a product such as an artificial intelligence tool, keyword research tool, etc., you can charge customers for using what you created.

An example of this is an email autoresponder system where the purchaser pays a certain fee each month for the number of subscribers they have, which increases the more people you get on your list.

Or another example might be a funnel builder of which there are many to choose from but all subscription based.  The one we like and recommend today since it includes many great features is this one

This is an recurring revenue stream we have made a good amount of money from (and still do) as affiliates of a number of different autoresponder accounts (as we share on our website resources page) and funnel builders because what we teach our students requires them 😀

Developing Your Recurring Revenue Funnel

Now that you know what options you have available to you, let’s talk about you developing your own funnel of recurring revenue. The foundation of your business is going to be to develop a funnel that is irresistible to prospective customers but first…

Who are those customers going to be?

In it’s simplest form this is people just like you who want to do the same as you, have the same pains and challenges as you and who have the same desires and outcomes.

Your target audience.

More on this to follow as it’s very important

These prospective customers are looking for a few things from you.

It starts with the value you can provide to them and how is your product or membership going to change their life or solve a problem for them in a unique way?

It’s going to start with the attraction process, where you are publishing content that brings people to your blog or social media accounts and presents something for free (we call this a lead magnet) and that gets them on your subscriber list.

Next, you’re going to nurture those prospects via email marketing so that you can prove the value you offer to people.

(You may be reading this in one of those emails as we regularly share our new blog articles with our subscribers.)

You’ll then present them with your offer to join your program or buy your subscription product.

Building Your Recurring Revenue Model

Think about how you are going to earn money from this concept. You have probably already chosen one of the three recurring revenue business models. The next step is for you to pinpoint who your ideal customer or general target audience is.

Not only do you need to understand the basic demographic information such as their age, gender, location, income level, etc., but you need to know more psychological and behavioural elements that tell you more about their pain points, preferences, and challenges.

Keep in mind that this is not a one time process for you. As a business owner, it’s up to you to understand how your customers journey will evolve over time. Their needs will change, and you have to be able to deliver something that addresses that transformation they require.

For us the pain they are experiencing is lack of income to fund their retirement.

We have solutions but we first have to be talking to the right people.  For example we have a Tik Tok channel that is specific on this and everyone who we get in conversation with ask us for our book that helps give them clarity and leads to a one on one all to further define their specific needs.

Marketing Your Recurring Revenue System

Your next step is to think about how you’re going to market your recurring revenue system. You want to be attracting your prospective customers and finding ways to encourage them to become subscribers.

Once you know your target customer or prospect you will be better able to tailor your messaging within your content, whether it’s on your blog, social media, or elsewhere.

Knowing your customer’s requirements, you need to showcase in your content the transformation that will take place whenever they become a member or user of your recommended program

For example our target customer needs to know how to get leads and how to convert those leads into buyers in order to generate an income for their retirement and the program we recommend does exactly that.

They also need to know how to create their own funnel and a lead magnet and one of our recommended resources does that too

You’re not just positioning your brand as one that is attractive for their needs, but your position yourself as that trusted leader and guide who will help them achieve their goals within the community of your recurring income system.

In addition to content marketing on your blog and social media marketing where you relay the value you will be providing to your subscribers, you can also use live events that are open to the general public and get people on your list using a value pack lead magnet so that you can cater to them directly via email.

Lead magnets are very easy to produce these days with both AI and PLR and can be adapted to match your required prospect

If you are running a network marketing business which we do alongside our business education and training business, your products are also something that you will earn commissions on on a recurring revenue basis so think about that too 😊

Customers of your products who love them will keep buying them each month if they solve a problem for them.

Keto, Paleo, Vegan… these days, people are passionate about their unique approach to health and wellness (that’s us). But it can be hard to find products locally that support these unique lifestyles.

Why not make it easy for these folks to explore these diet-friendly products?

Find a network marketing company whose products you like and would use yourself and start promoting them and earn recurring revenue

It’s exactly what we do with the company we’ve partnered with – Amare Global

Personal Wellness Services is another area where you can earn recurring revenue when someone is ready to take their health, fitness, or wellness seriously, they can be in the perfect place to sign up for recurring packages like personal training, meal planning, or meditation guidance. Plus, the accountability they’ll get from you can help them make meaningful progress towards their goals.

Susan has this in her business where she helps women 50 plus coping with the menopause

Just some ideas…

There are so many more and we can  discuss these with you on a call should you want to get some ideas.

Thanks for reading today’s blog Why You Need Recurring Revenue For Your Retirement and would love you to share your thoughts and feedback.  Just contact us

And if you want to talk to us you can book a free call here

Why You Need Recurring Revenue For Your Retirement