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Using a recurring revenue model

August 19, 2013
Is your small business relying on ongoing transactions to generate revenue? Do you have to continually sell your products and services in order to maintain your revenue levels?

Most business models require new revenue each month, which means you start out each month at zero.

With a recurring revenue model, you only have to make one sale and benefit from a recurring revenue stream each month.

What makes a recurring revenue model so valuable is that you can count on a specific amount of revenue each month, while at the same time focus on expanding your business with additional new accounts.

The beauty of a recurring model is that you can better predict your revenue income, which in turn lowers the risk to your small business in managing cash flow.

Thousands of businesses utilize a recurring revenue model, whether it's a local gym membership or a subscription to cable television.

Some companies combine a one-time sale of a product or service with an ongoing recurring revenue model for support or services.

Other companies, like software-as-a-service organizations, base their entire business on a recurring revenue model.

A recurring revenue model will have a positive impact on your operations, marketing, customer service and ultimately the viability of your business.

Recurring revenue that is predictable, stable and can be counted on in the future with a high degree of certainty will enable to you to achieve stable growth of your small business.

Dick Jones is the Founder & President of Jones Simply Sales in Alpharetta, Ga. As a 4th generation sales professional, he has over 30 years of experience advising, coaching, consulting and working with small business owners. Office: 770-663-4681, web:
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