How many of you like roller coasters? Have you ever looked at your income in your business and found the resemblance? If you draw a chart, there are certain peaks in your year with high income, then it comes down. It goes up again, and it comes down again. That’s what we call a feast & famine cycle, or the launch or client roller coaster. And today, we’re going to talk about how not having recurring revenue in your business will keep you stuck in that rollercoaster.
So first of all, I don’t like roller coasters in real life. They scare the heck out of me. But, with business, I was stuck in my own roller coaster for a very long time. A big client project one month, then nothing for two months. A small client project one month, then nothing for an entire month. It was this repeating cycle of feast & famine, feast & famine.
And I know a lot of you out there are struggling with the same problem. If you work with clients, you’re always on the rush to find your next client. If you sell digital products, you have one big launch and then only hear crickets. It’s a problem I’ve not only seen, but have experienced myself for a very long time.
But do you know why I was stuck in that exhausting place? Because my income wasn’t sustainable, dependable, consistent, and most of all, recurring. Because the way I run my business made me push the reset button on my income every single month. My business was running in a way where the finish line became the starting point next month.
It was running in a way where one big project or big launch was feeding the other months where I didn’t have them. But is that the way you want to continue running your business? I certainly did not and this is what I did.
I implemented recurring income offers in my business. It was that simple.
And I’m not talking about a membership program, a subscription business, whatsoever. Whether it’s by splitting your payments into longer months or signing your clients on retainer, you can easily add recurring income into your business. With my clients, I always offer two types of payment plans aside from a pay-in-full option. Whether it’s 3 months or 12 months, dividing a big payment into smaller monthly payments makes it approachable for the client to start paying.
I actually had a payment come through this week from a project that I completed weeks ago. And to add even more recurring income, I offered maintenance/support plans for the websites I built. If you already have a coaching or online education business, adding a membership to your programs will be much easier than someone who offers services.
You can offer a membership program after your first offer where you cover more in-depth topics, give more support, and build a community. However you decide to structure it, a membership program will be a great way to increase your customer value, while giving them the content and support they need. But even if you offer a service, you can still add on a membership on top of your services.
If you build something for your clients, you can offer a support plan or training plan after the project ends so that they feel supported and secured even after their contract with you ends. And just like I said earlier, you can offer financial payment plans for your services. This works well if the services you offer are pretty high cost and is a bit pressuring for the client to pay-in-full.
I’m slightly turning this conversation, but continuing with memberships, if you add on a membership-style program to any product or service you sell, we call this a “premium” or “back-end” membership. It means that rather than a more inexpensive membership used to up-sell your members to higher-ticket offers, the membership you offer IS one of the high-ticket offers you have in your business.
And that’s what I love and recommend, because it allows entrepreneurs who don’t have as a big following to still turn their business into a recurring revenue machine. As long as you give your members a good reason to stay, AKA deliver the results they want, you can run a successful business without having a crazy amount of clients and customers.
And guess what? Since your job then will be to keep your customers happy than to look for new customers, the level of support and value delivered to your customers will immensely increase.
Isn’t that the goal for everyone here? To be able to do what you love for the people who need it, without worrying about getting new customers or clients.
And if that’s the ideal business you want to build, I highly recommend you to start thinking of ways you can implement recurring income offers in your business.