Part 3) Why Business Fail:
They are unable to generate automatic recurring revenue
In my teens, I made a life changing decision. This was at a time when I was a young, unstoppable, fearless seller of “things” and thought I knew everything there was to know about anything.
At that time it seemed like a easy (and trivial) decision.
I had a choice. A choice between two companies to invest my time and liquid capital with.
One company sold a simple service for a small monthly investment.
The other company sold an expensive product with no built in recurring.
Both companies were in their infant stages and I did not have the time or resources to invest in both.
I chose the company with the expensive product.
If I had to do it all over again, I would go back and choose the company with the simple service with the small monthly investment.
Because that “simple service” company is worth 4X (and still growing) what the “expensive product” company is worth.
Don’t get me wrong, I still did very well. The money wasn’t the entire basis for my decision.
The primary reason for my revised decision is that on TOP of being more profitable, the “simple service” company is easier to run and less time consuming then the “expensive product” company.
While the founders of the “expensive product” company are hard at work, the “simple service” company executives are on vacations….with recurring revenue coming in automatically!
Experiencing first hand the difference between these two companies was a life changing event for me.
I will now pick a $17 per month service over a $1997 one-off product without a seconds hesitation any day of the week.
In my youth, I chased the almighty dollar first above all else. With experience I now know better.
Recurring revenue is king.
Don’t make my mistake.
No matter your industry, no matter your niche, it is possible to add to $3k to $5k of automatic recurring revenue to your bottom line in months if not weeks. You can then easily grow it every month with barely any effort.
In fact, recurring revenue is not only a fantastic source of revenue BUT its a great branding tool as well!
In the next section I’m going to show you how to make this happen for your business.
Let’s jump into….