Welcome Back for Part 4 of this 5-part series. The “Whirlwind of Success.” We hope you have enjoyed this series. We have covered our Lead Magnet in Part 1, Customer Acquisition in Part 2, Maximizing the Value in Part 3…
Remember, if you missed any of those, you can find them in my previous Posts or simply click on the links above.
In Part 4, we will be discussing “Recurring Revenue.”
According to Investopedia: Recurring revenue is the portion of a company’s revenue that is expected to continue in the future. Unlike one-off sales, these revenues are predictable, stable and can be counted on to occur at regular intervals going forward with a relatively high degree of certainty.
Wouldn’t it be nice to have a consistent flow of income coming in? A stable income, that you could count on regularly, like clockwork…
“One-Time” sales are “One and Done” and even though they can produce a profitable Income, depending on the product, they do not produce a continuous steady amount of income from your customer.
In Alabama, we say. “If you don’t like the weather, wait 5 minutes.” I’m sure there may be a similar saying around your part of the world. In just these past few weeks, we have gone from 16 degrees F to almost 70 degrees F. Alabama Power is our Electric Company and because of our fluctuating temperature, they offer a program called “Budget Billing”. In this program, the power company calculates the last 12 months of your energy usage and divides your total by twelve. By offering this program, the customer has a power bill that only fluctuates by a few dollars monthly. This gives the customer a good estimate of what their monthly bill will be, and they can use that figure in their monthly budget. It’s a great program for those on a limited income. Customers can pay a similar amount each month instead of having Lower power bills in the Spring and Fall, when less power is used, and Higher power bills in the Summer and Winter when the demand is at its peak.
It is also good for Alabama Power in that they can count on a more consistent flow of monthly income from their customers.
Likewise, if we can create a more consistent and reliable flow of income in our business, we may not be able to completely smooth out the peaks and valleys of our incoming revenue, but we can avoid the major ups and downs of our inconsistent income created by our “One Time” sales.
That is our focus on this part of the funnel, generating a Consistent, Reliable, and Steady income from our customers.
How do we do this? What can we offer a customer that could generate this type of flow of income?
If we had Magazines or Books, we could offer a Subscription type service where we could send out one book per month for a certain fee. I don’t know about you, but we don’t have enough books yet to make this happen, but your skillset may be different…
Let’s look at some of our other options…
A membership service for mentoring and/or coaching… (any skills that you have to help others in building their business could be offered)
A subscription for a software program that would benefit our customers… (monthly subscriptions for Apps, email builders, spreadsheets, tracking programs… Think about what monthly or yearly subscriptions that you have in your business and what you could improve upon with your skills to make things easier)
Keep in Mind, these subscription-based services could be Monthly, Quarterly, Yearly, or anywhere in between. Let’s not forget about the “Trial Offers” and/or “Discounts” that you could offer on the first Month. The customer will see the trial offer or discount as a bonus in making their decision to purchase.
Harper
Says:
I get EXCITED to see how all the ingredients come together to make the final result, Don’t You?
Building a Successful Funnel takes the right ingredients.
Think about a tornado and what it takes to form. They just don’t drop out of the clear blue sky. Conditions like warm moist air near the ground, cooler dry air higher up, and wind shear, in the right direction, all need to combine to make it happen.
If we combine the Right Offers with the Right Values in front of the Right Customers, then our funnels will be successful.
There is only one more part that we need to add to our funnel to make it complete and to have all the ingredients that we need. We will discuss what ingredient that is in our next Post.
To seeing Dreams Discovered!
David Roper