Not all recurring revenue business models equally valuable. You can think of it as a scale with five levels where the higher your business model falls on the scale, the more valuable it is. And the key to value in this case is making it hard for competitors to take your customers while also making it undesirable for your customers to switch their business.
If you supply services to clients, you're probably stuck on the time for money treadmill.
The way off that treadmill is to create recurring revenue in your business.
Inc.com explains 5 different types recurring revenue.
- repeat customers
- the network effect
- sequenced products
- good until cancelled
Have you managed to create recurring revenue in your business? Leave me a comment below and share your experience.