Today we’re going to talk about something that is causing a lot of stress for entrepreneurs who are starting a new business. I’ve been asked about this a lot concerning my Facebook advertising agency. I’ll wager you’ve also been struggling with it, and now I’m looking to soothe that pain.
If you sell any kind of service, this will speak directly to you. Because if you’re in sales, you know what it’s like to live feast to famine. And that’s what I want to address today… how to get off the feast to famine roller coaster once and for all by creating recurring revenue streams in your business.
Now, I can imagine you’re thinking, “But Billy, my business is different. There isn’t any way to create recurring revenue.” I’ll bet there is, if you think creatively.
Look at realtors, for instance. When they sell a big house, a million-dollar home, they can expect a pretty good windfall. They deposit their $20,000 check, feeling great about having skyrocketed their income for the month.
But then the next month rolls around, and maybe that realtor didn’t sell anything. Then the next, and the next. Six months go by, nothing has sold, and that $20,000 cash cow has dwindled. The realtor winds up making $3,000 per month for half a year, when they really thought they’d made $20,000 in a month.
Beat the feast or famine blues with recurring revenues
So, let’s talk about recurring revenue, why it’s important, and how it flattens the feast to famine roller coaster.
If your business is like most, you’re basically starting from scratch every single month with income. You hit the office, the month starts, you have zero sales. Then between day 1 and day 30, you try to find a way to make it happen. That sounds stressful.
And the only way to conquer it is by creating recurring revenue streams.
Why do we love recurring revenue?
Because it means we’re making money — a predictable income — month in and month out. That means you can sleep peacefully at night knowing you can pay your bills. That means you know you have a reliable, sustainable financial base.
Can you think of a business that offers strong recurring revenue to it’s owner? Your local gym! Every month they know how much money is coming through the door.
Now, let’s compare that to the real estate agent who never knows where their next paycheck is coming from.
What kind of life is that?
How do you build your business if you don’t know how much revenue you’ll be bringing in each month? How can you possibly make a hiring decision if you don’t know if you’re going to have the revenue to support another person’s paycheck? How do you know if you should invest in an office or hire an employee if you don’t know how much money you stand to make. Do you see what I’m saying?
Finding the recurring revenue in your business
I think, too many times, people believe they just cannot have any kind of recurring revenue in their industry. But every industry really does have opportunities for making money consistently every month. I can almost guarantee you, there’s some kind of service you can offer to people to get that coming in.
So for example let’s say my trusty assistant, Reena, is a fisherwoman.
How would she make recurring revenue out of something like that? Clearly she needs to be out on a river, or a lake, or the ocean, physically fishing to make money. How would you suggest she create recurring revenue out of that industry?
Well, what if she were to teach people how to fish for themselves? She could create videos that teach fishing enthusiasts the best techniques, the best bait for catching specific fish species, how to locate fish, how to clean fish, and how cook them up into a fantastic meal. Then she can sell those videos.
So, let’s say for a monthly fee of $97 she’d put videos online that give other fisher-people all of her best tips and tricks.
See what I’m saying?
That’s an industry where we just pulled an idea completely out of the air, just by having a skill and thinking “what if”? And now Reena has some recurring revenue.
I don’t care what industry you’re in, you need to start thinking about how to build consistent, recurring income in your business — regardless of whether you’re a Facebook advertising agency, a fishing fleet, or a real estate business.
Why? Because this concerns your future! You don’t want to just build a business that only lets you live paycheck to paycheck. Isn’t that the exact opposite of what having your own business is supposed to provide you?
If you’re sitting there right now and you’re thinking, “Oh my God he’s talking about me. I don’t know what I’m going to do.” Shut up! Start thinking about how you’re going to add recurring revenue streams to your business. Because once you have paid revenue coming in month, after month, after month, it automatically opens the doors to making money in other ways too.
You can start by selling them new products or services. Plus you’ll have a database of people that you can market to at any time. So you can upsell or cross-sell products and services, you can get referrals from them and start selling to those referrals. There’s just so much goodness that comes with recurring revenue.
So, if you’re not in an industry where you think you can create recurring revenue, it’s time to get creative. Get in one of our programs. We’ll show you how to find steady revenue sources that you can implement today, and watch them change your life.
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-The Billy Gene Is Marketing Squad