If I asked you right now, “Is your revenue goal high enough to pay yourself…
Want to know how to earn or increase monthly recurring revenue? Creating and increasing monthly recurring revenue (MRR) is a big focus for many businesses, and for good reasons. So whether you’ve not got any type of monthly recurring revenue at the moment, or you are making some, but not enough, you are in the right place. Keep on reading to find out the 3 simple ways to earn, or increase, monthly recurring revenue.
This page may includes affiliate links, which means that if you choose to make a purchase, I may earn a commission. This commission comes at no additional cost to you.
THE BENEFITS OF BUILDING MONTHLY RECURRING REVENUE
As someone who is looking to start, or increase, monthly recurring revenue I’m sure you are already aware of the benefits of having a monthly recurring revenue, but just incase, here are some of benefits.
1. More predictable cash flow
One of the biggest reasons businesses fail is cash flow. Most businesses experience seasonal fluctuations with some months doing great and others not so. This can result in businesses having to ride a feast-or-famine wave. This can make predicting your monthly income hard, and in turn this makes it hard to predict your overall cash flow. Building monthly recurring revenue means you have predictable income, and when you get your monthly recurring revenue above your ongoing monthly expenditure, it can give a great level of confidence.
2. Supports long-term planning
When you are planning further ahead (6+ month) then monthly recurring revenue can make a big difference. You’ll have much more confidence in your financial forecasting and this will help you to be able to also have confidence in making decision, especially those that will involve investments.
3. Reduces the pressure to make sales each month
If every month you are starting with zero predicted income, there is a lot of pressure on you to sell. When you know that even if you didn’t make any new sales this month you’d still make thousands or tens of thousands in revenue you’ll approach selling in a completely different way.
4. Can make taking time off easier
This will depend on how you are making your monthly recurring revenue, but on the whole for most business owners monthly recurring revenue helps them to take more time off. Depending on how you are making your monthly recurring revenue you may have some delivery commitments, but these can be fixed further in advance making it easier for you to be able to block out time and be able to go on holiday. Also, monthly recurring revenue not only enables you to take the time off, but because you aren’t as heavily reliant on making sales that month in order to make that month and next month you can also go on holiday without stressing about returning to no work and no money.
Want to take more time off? Monthly recurring revenue will help, but there are other things you can do. Read How to take a holiday without your business falling apart to find out more.
Now you know some of the benefits of building monthly recurring revenue it It’s time to focus on creating, or increasing, monthly recurring revenue for your business.
WHY 3 SIMPLE WAYS TO EARN, OR INCREASE, MONTHLY RECURRING REVENUE,
1. Create an offer specifically
One way to generate or increase monthly recurring revenue is to create an offer with the intention of it being something that people pay for monthly. Many businesses have looked for ways to turn a one-off purchase into a subscription and for good reasons. I can remember when you used to buy a CD-ROM for Microsoft Office. You paid for it once, loaded it onto your computer and that would be it until you decided to upgrade. Whereas now you pay on a monthly or annual basis. This is just one example, but I bet if you looked at your bank statements you could find multiple examples of subscriptions you pay for such as tv and music streaming services.
As someone who specialises in helping online service-based businesses, there are certain offers which naturally work on a subscription model. Two very common options are memberships and masterminds. For both it is very common to pay on a monthly basis. With memberships this is usually an ongoing commitment until someone decides to unsubscribe and with masterminds it is more likely that someone will sign up for a certain period of time (6 or 12 months) and pay monthly across that time.
So you can look at your offer suite and see if you can make an offer that complements the rest of your offer suite, and would enable you to generate or increase your monthly recurring revenue.
| BUILD AN OFFER SUITE THAT ENABLES YOU TO HIT YOUR FINANCIAL AND LIFESTYLE GOALS
Refining your offer suite and setting your prices so you can achieve your lifestyle and financial goals is all part of the Strategy Day planning process. But on top of that you’ll then have the marketing and sales strategy so you can sell everything in your revised offer suite so those profit goals become a reality. |
2. Add a pay monthly option to an existing offer or make it more appealing
Creating a new offer just to have a monthly recurring revenue stream might sound drastic. If you already have an offer suite that you are happy with then what you could consider is adding a pay monthly option.
When doing this you’ll need to make the pay monthly option appealing if you want people to go for that rather than the pay-in-full version.
Usually, it costs more to pay in full than it does to pay monthly, but you are in control of the difference.
For example, you could have a 3-month service that you charge £3,000 that you would like people to pay monthly for. If you charge £1,300 per month that would mean people are paying £900 extra over the 3 months and most people won’t choose that option unless they don’t have the £3,000 upfront.
However, if you were to charge £1,100 that’s only an extra £300 and some people might think that it’s worth paying that to have some extra money in their bank. This also becomes increasingly powerful for longer-term offers.
For example, if you have a 12-month group programme and that is £6,000 for the year, you could decide to charge people £550 per month. This is £6,600 in total (so they are paying an extra 10%), but some people will think that it’s worth paying that extra bit as they’ll have thousands in their banks for many months so may prefer that from a financial perspective.
If you already have pay monthly options but the percentage of people taking them up is low, then it is also worth revisiting and seeing if you can make it more appealing.
| NOT CONFIDENT WITH PRICING? LET ME HELP YOU.
When set correctly pricing will enable you to influence people and encourage them to take a desired action. This can be choosing the offer you want them to choose, or choosing the payment option you want them to choose. I’ve been helping business owners for years to use pricing strategically so that you drive desired behaviour and hit your business goals. So if you aren’t confident with your pricing you don’t need to do it alone. We can work together and get them set FAST. Just book a Pricing Power Hour. For more information and to book a Pricing Power Hour click here. |
3. Become an affiliate where you’ll generate a monthly recurring revenue
As already mentioned, many businesses have looked for ways to start selling things on a subscription model where people pay monthly and this means some businesses also pay their affiliates on a monthly recurring basis. One area where this happens a lot is in software.
As someone who supports micro business owners with their marketing and business growth, I’m always recommending lots of different software, everything from what to use for finance, design, email marketing, running your online business and more. Not only do I answer numerous questions for recommendations, but I also created a resources page (you can check it out here).
Some of these softwares will pay affiliates a one-off fee when someone signs up via you, but some will pay you a percentage of what the person pays every single month. So if there is software that you are already recommending check to see if they have an affiliate scheme and if whether they pay as a one-off or recurring.
That’s it. You now know 3 simple ways to earn, or increase, monthly recurring revenue.
There are numerous benefits to having, or increase, your monthly recurring revenue and as show there is more than one way to make it. In the first instance choose just one of the ways discussed above. You can also try the others afterwards, but focus on getting one up and running and then build from there.
I hope you’ve found this blog post useful. If you decide to put into practice what you’ve read today, let me know.
You can leave a comment below or drop me a message on Instagram or LinkedIn.
If you are serious about increasing your monthly recurring revenue and building a business you love, then I’ll love to help you.
Strategy Day is perfect if you are looking for a fast-track review of your business and new strategy.
Or if you’d prefer the strategy and then ongoing support check out my 1:1 Business and Marketing Mentoring.
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