EP 114: What Is Consistent Recurring Revenue?
Sep 03, 2019
As Service-based Online Entrepreneurs who want to make an impact through the work that we get to do, it is important that we are building the foundations of our businesses on something that is really strong and solid that can withstand five to ten years down the line.
In today's episode, let's talk about consistent recurring revenue which is a very important element in creating a sustainable business and how this concept actually helped one of my employees break free from the income roller coaster she was in prior to working for our company.
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- [03:41] Consistent recurring revenue is money that your business makes every single income consistently and predictable.
- [03:51] One of my employee's biggest relief, from being a freelancer to working for our company, is the fact that she no longer has to worry about the up and down months.
- [04:33] One of my employees said, "I would rather make $1,000 a month predictably and know that that money is coming in rather than starting at square one every single month."
- [04:53] Consistent recurring revenue is so important because it is what allows you to make money month after month after month and not have to start at square one every month.
- [05:30] You are like a hamster on a hamster wheel trying to catch up. Trying to run faster and faster in order to break even and that ultimately leads to complete burnout.
- [05:50] The best way to create consistent recurring revenue is to do it in a scalable way.
- [06:02] Group coaching programs are an excellent way for you to create consistent recurring revenue because you no longer have a cap on how many clients you can serve at one time.
- [07:41] It takes you about six to seven times more money to get a new client than to keep an existing client.
- [08:28] The Thrive Business Model: Start with a high-end offer, then add your leveraged offer and finally, add your passive income products.
- [09:30] What are we doing with all those customers? If you don't have a plan for what's next for all those customers, you are leaving multiple 6-figures off the table.
- [10:20] Do you have a scalable offer so you are not capping your own income?
- [11:15] We have a boot camp called BREAK The Feast And Famine Cycle Like A Boss which will start in a couple of weeks. You can text EPBOSS to 44222
- [12:50] Look at the overall health of your business by knowing your Customer Lifetime Value which is how much money one client on average is spending with your business.