Skip to Content

Generate Recurring Revenues for Your Business

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.

Graph-increase According to this article by Michael Periu, courtesy of the OPEN Forum, these revenues have several benefits:

  • 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?

Connect with Tribute on Social Media


Talk with Tribute


Subscribe to our Newsletter

Sign Up Now

Tribute, Inc. is a provider of ERP business management software for distributors and system integrators in the fluid power, hose, motion control, automation, fluid handling & pump industry who provide value-added services.