TPS #28– Creating Recurring Revenue (for online businesses)

Welcome Back, Solopreneurs.

Let’s be honest…

Project work sucks.

I mean, don’t get me wrong, it can be amazing for your first work

But, the "feast or famine" cycle—is all too familiar for most online business owners.

Imagine waking up each morning knowing you have a consistent income stream, no matter how your projects ebb or flow.

This is what the recurring revenue model can do for you.

Unfortunately, you probably don't have this model setup in your business. And that’s not your fault per se.

For most entrepreneurs, the idea of a monthly retainer is wild.

So let’s break this limiting belief.

The major obstacle is a lack of understanding.

• You’re unsure how to create a valuable product or service

• You’re having difficulty identifying the right pricing model.

• You’re uncertain how to market their offering effectively.

These are all essentially non-problems in my eyes.

Why?

Once you are determined to shift into a recurring revenue model, you’ll conquer these obstacles as they arise.

It’s a matter of taking action and staying persistent.

Here’s how to do it, step by step:

Step 1: Identify a recurring need

Identify a recurring need your target audience has that you can fulfill.

This is the foundation of your recurring revenue model. Study your customers, ask them directly, or survey them to discover their ongoing needs.

This is what separates your business from “project work.”

This could be a digital product, a membership site, or a retainer-based service. To brainstorm, look at successful recurring revenue businesses in your industry for inspiration.

You don’t have to re-invent the wheel, you just have to do it better.

Not for cheaper, but for more value.

Never compete on price.

Step 2: Develop your recurring revenue offering

Create a product or service that meets this recurring need. It must provide continuous value, keeping your customers engaged and satisfied month after month. Consider models like memberships, subscriptions, or retainer services.

A prime example is the founder of designjoy.co 

He’s a one-man band of this high-ticket subscription service.

So you already know the margins are insane.

But better yet, he turned something like design work, which is normally project-based, into a subscription.

The design may not be your thing, but the concept applies to any niche.

Step 3: Set a fair and profitable price

Pricing your recurring revenue offering is critical.

Price it too low, and you'll be overwhelmed with work; price it too high, and you may alienate your customer base.

It will take time, but find your sweet spot.

It’s always better to price higher than lower; you need to feel rewarded and motivated to do the work they’re paying you for.

But ultimately, you set the price.

And if no one else is providing a similar service in this model, then you have no competition.

Giving you all the control over pricing power.

Step 4: Promote your offering

Creating a valuable offering is not enough—you must market it effectively.

This means:
•understanding your target audience
•crafting a compelling value proposition
•and using the right marketing channels.

Take inspiration from successful subscription-based businesses in your niche and learn from their tactics.

Again, no need to reinvent the wheel.

Find what works, and do more of that until it works for you.

Now it’s time to launch.

Paid ads, organic content marketing, emails, whatever is your thing:

Market the hell out of it.

If you genuinely believe in your offer, then you have no reason not to tell everyone how amazing your product or service is.

Now It's Your Turn

I hope this gives you some insight into how you can flip your industry on its head and implement recurring revenue.

Because at the end of the day, when you’re lying down to sleep.

The last thing you want to worry about is getting another client in order to pay your bills.

Today, I created an ICP tracker.

This will allow you to keep tabs on the clientele you serve best.

And supercharger your marketing efforts by knowing which pain points to target for which specific audience.

PS: Whenever you're ready, here’s how I can help you:

If you need help with operations and automating your workflows for yourself or for a team. Check out:

Profit Pilot

The only ops agency that builds unlimited custom systems and automation to help you scale efferently and sustainably.