Recurring revenue is defined as continuous, regular payments that are highly likely to continue in the future. Many business analysts believe that recurring revenues are the most attractive type of sales that a company can generate.
- Recurring revenues are predictable
- Recurring revenues can be high margin
- Recurring revenues offer a high return on investment
Consider turning your product into a "solution" or adding a service component to it, such as:
- Preventive maintenance contracts
- "On call" services
- Selling access to future updates or scheduled maintenance
- Offering subscriptions to specialized information, advice or best practices associated with your product
And use these tips to help ensure success:
- Bill your customers automatically and frequently
- Train your sales staff on recurring revenues
- Build trust through good policies
What ideas has your company used to generate recurring revenues?