The recurring revenue business model is one that many businesses overlook. This type of model often involves a subscription service. In a time when every dollar matters, receiving continuous payments from clients has several benefits.
Stable Cash Flow Business can be going well one month and barely staying afloat another month.
By setting up a recurring flow of revenue, your business becomes a lot more financially stable. Each customer on the subscription plan is billed according to an agreed upon amount. Customer payments can be set up as automatic payments.
This money keeps business operations on track. Recurring payments lowers the risk of sudden economic downturns. Get Paid for Completed Work Doing the work once and getting paid for it repeatedly is certainly attractive for businesses in all industries.
Customers pay to receive a particular service that may involve delivering work that has already been partially or completely done. The customer pays for upkeep and maintenance.
If ongoing maintenance requires relatively little effort, it costs the company very little to earn a nice profit. Marketing and sales is geared towards acquiring new customers to add to the subscription plan.
Increase Business Value Companies that adapt a good recurring revenue model are more likely to attract even more business. Each customer that is added into the model helps to grow the company, which makes the business look like a winner.
Many hugely successful companies use this very same model. Visit ServiceSource.com for more information about how to automatically boost your monthly revenue stream.
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