Step 4 of 5: Recurring Revenue
Time for me to fulfill my 3rd and final promise of this training.
If you don’t remember, my 3rd promise was….
Why Businesses Fail Reason 3) They are unable to generate automatic recurring revenue.
Promise #3: I am going to….
….show you the step-by-step method to generate additional RECURRING revenue on demand OR automatically every month with almost no extra effort on your part NO MATTER YOUR NICHE.
As you may have picked up from the section intro, I am a huge fan of the “Recurring Revenue” step in this funnel.
After the “freebie”, I think it is the second most important step in the entire 5 Step Process.
The possibilities for recurring revenue in most businesses are almost endless, but for the sake of this training I will provide some specific rules and concepts.
As with the rest of the steps in our 5 Step Funnel, we want any recurring revenue option to build on the value of the previous steps.
More importantly, any recurring revenue method MUST be an excuse to continue to upsell the buyer on additional products and services. Anything “recurring” means a “recurring” chance to get information in front of the buyer.
DON’T stop yourself and your company short here when you are so close to your goal!
We purposely did NOT hard sell our products and services earlier in the funnel because we wanted to build up trust. With each step along the funnel, we have more trust and should be increasing the intensity of our promotions accordingly.
Any lead who has made it this far trusts you and is benefiting from the relationship.
Don’t let them down by NOT getting helpful products and services in front of them.
So what type of things can you get “recurring revenue” from?
As mentioned earlier, the options are almost endless if you have a open mind, but my two favorites are 1) Paid Newsletter and 2) Combining Services/Products.
Both of these are EXTREMELY easy to do.
I’ll address Paid Newsletters first.
First, remove any concept you may have of “newsletters” from your mind.
The old newsletter “style” does not work. It’s far too much work and nobody wants to pay for that type of newsletter.
The type of newsletter I help my clients setup is much simpler.
Instead of writing the content yourself, you are going to “curate” it. When you curate something, you are simply taking someone else’s content and providing some expert commentary/additional information to supercharge said information.
The basic system I use for Paid Newsletters:
1) research and curate 3 to 5 high quality content pieces that provide value to your buyers
2) Provide expert commentary and additional helpful advice about each piece of content.
3) Provide instructions/steps to implement this information in your buyers life
3) Package this content into a email (or if you are more ambitious a physical mailer) and send it to your subscribers.
Sit back and enjoy the insane value you are bringing your buyers!
Think of your “paid newsletter” as more of a “group coaching mailer”.
How much would you charge for one-on-one coaching? At least $500 right?
Exactly! So charging $4.97 per month for 1 to 2 emails full of personal advice and personally selected valuable content is cheap.
Now you are probably going “nobody is going to pay for a email from me.” My data says otherwise. Every time we implement a newsletter following this formula we get at least 3-5% of the current/past customer/client/patient base signing up immediately. Over time, having 50-70% of your current/past buyer database subscribed is a very realistic expectation.
Even better, your newsletter will be chalk full of upsells, so you will get more sales from something people are PAYING you to send them.
These newsletters also position you as a expert in your field so they are great branding/sales tools. They also work GREAT as a Irresistble Offer!
If newsletters aren’t your style, you go simpler by using my second favorite method; combining services and/or products.
This is extremely simple. Combing services and/or products into a package and offer it for a recurring monthly rate.
Dollar Shave Club one of the best known but there are now TONS of companies that literally only offer a “box of stuff” delivered to your door once a month. These companies are making a KILLING!
Because they buy everything in bulk, they can offer it at lower prices then you would get off the shelf WHILE charging a convenience fee for shipping.
Just Google “monthly subscription boxes” to get an idea of how large this industry is.
People hate making decisions. Free them from this burden by packaging your services/products in ways that will help them and then charge them a flat monthly investment every month.
SECRET TRICK: I supercharge this method by including OTHER peoples products and services in these monthly packages. Other businesses will fall over backwards aka cut their prices massively to get in front of new customers. If you ask some of your fellow local businesses if they want to a combine services/products into a monthly package you will be shocked at how excited they are. Everyone involved with make money and provide value to their customers WHILE getting new buyers through the door.
IF YOU DON’T HAVE a recurring product/service, then I suggest you start with either the Secret Trick above OR “insurance”.
Selling insurance is easy and can be done by any type of business. “For $4.97 per month, you will get 10% off all future purchases and a guaranteed response time/appointment time, etc, etc)”.
One of my more popular case studies of selling “insurance” is a paving company that invested in me to grow their revenue. They sell paving services followed by sealing services as needed. They had no monthly product or service to offer.
I setup a simple offer for this client: for $19.97 per month, we guaranteed a 48 hour in-person response to any issue (damage, etc) AND 10% off any future work.
This company had over 500 past buyers take him up on this offer within the first week. That’s almost $10k per month in recurring revenue for NO ADDITIONAL WORK!!
So like I said, recurring revenue can be setup for almost any business anywhere with almost no work required.
Here is a quick recap (see bottom right)….
You have now received a “master course” in recurring revenue!
Don’t overthink it and just do it!
Time to move onto….