Sick Business? The Prescription May Be With Subscriptions

How Can You Find Recurring Revenue?

How can you simultaneously make your forecasting easier and improve the salability of your company? Figure out ways to turn as much of your revenue as possible into recurring revenue.  This may be with the use of renewable subscriptions or service contracts.  A few examples of models you can use to capture recurring revenue are:

  1. The Simplifier Model – Set and forget.  A good example is Richmond, VA based Mosquito Squad.  They offer an automatic misting system that sprays on a timer, with periodic refill and maintenance.  The customer doesn’t have to “lift a finger”.
  2. The Front of the Line Subscription – For people who don’t want to wait.  Disney’s Fast Pass attracts those of us who want to go to the front of the line.  With that, they have created a new revenue stream with regular subscribers.
  3. The Consumable Model – We never run out of the consumables we use daily.  Michael Dubin and Mark Levine founded The Dollar Shave Club in 2011.  They recognized that people disliked having to go to the store to buy expensive razor blades.


The “Automatic Customer”, a book by John Warrillow, was released in 2015.  This book is full of ideas that could help business owners in any industry transform their companies into subscription businesses.  His sub-title is “Creating Subscription Business in any Industry”.  In the book Warrillow is very creative in coming up with several options small business owners can use to capture more recurring revenue.  I recommend the book for any business owner who wants to immediately increase the value of their business.

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