Powerful Proof Small Business Owners Need Recurring Revenue
TL;DR – Wondering if a recurring revenue model is worth your effort? Here’s some exciting proof you should give it a look.
Heard of Neville Medhora? He’s an awesome copywriter (kopywriter?) with a business blog that will give you great ideas to make money.
Just a few days ago, he sent an email to his list:
These docs are awesome.
But what’s even more awesome is what I realized when running some numbers:
Say I want one of my side projects to earn $500,000 per year. According to the spreadsheet, I’d need to do one of the following:
- Sell 5,000 $100 products.
- Sell about 400 recurring $100 subscriptions.
What’s easier will depend on your product and market, but to me, finding 400 new customers is much more attainable than finding 5,000.
Now, there’s a ton of different variables that aren’t included here. Do customers buy again and again? What’s the average lifetime value of a customer? How long will each of the 400 customers stay subscribed?
Those considerations aside, hopefully this simple screenshot shows how valuable recurring revenue can be.
In an upcoming issue of the TL;DR Digital Marketing Report, I’ll show you 3 ways you can easily add recurring revenue to your small business offerings. Stay tuned or sign up for email updates so you don’t miss it.
PS: Here are a link to those docs from the email, if you’re interested.
1.) If you sell services, here’s a way to get higher rates, without scaring off potentials:
- Post link: The Pronged Pricing Technique
- Doc link: Three Pronged Pricing Template Doc
(File –> Make a Copy)
2.) A pricing calculator that will show you what to sell to hit your revenue goals. Enter your revenue, it pops out the answers. Awesome doc I paid a guy to make.
- Post link: Product Pricing Calculator
- Doc link: Product Pricing Calculator Google Doc
(File –> Make a Copy)
