064 – Why Recurring Revenue Is Vital For Your Business
August 16, 2019
Main talking points include:
What recurring revenue IS NOT:
- Money for nothing
- Service Fees
- To be taken for granted
What recurring revenue IS:
- Built to scale
- A means to deliver ONGOING VALUE to your clients
- A benchmark to provide security for you / your staff / your family
Do a quick calculation – how many people depend on your company?
Number of staff + their spouses / dependants (animals?!)
SO… = 10 staff = 24 lives dependant on our income
Recurring Revenue and Me…
- Started with £10.00
- NEVER lost a quote on price
- Triggered the feast/famine cycle in my business and my family life
- Built a successful “freelance” business, but didn’t have the overheads to employ anyone
- Built it into low six figures
- Team of 16 when I started….
- Turnover of around £600,000 with around £240,000 (£20K / month) of this being recurring
- When I left (2 years 3 months later):
- Team of 36
- RR of £96,000 / month (or £1.15M)
- Started in 2016
- By month 7 RR covered the overheads of the business
- Y2 – six figures of RR
- Y3 – multiple 6 figures…
- I have NEVER not paid myself or my team
- The team started as 2… it’s now 9.
What RR gives you that’s MORE THAN MONEY
- Business Value
- Looking to sell your business 1 day, contracted RR is the second biggest multiple of business valuation (after property)
- The power to make decisions
- A platform to add and demonstrate value to a select group of clients
- The ability to charge what you’re worth, rather than racing to the bottom
- A means to get out of the feast / famine cycle
You’re talking just about agencies, right?
- I AM talking about service based B2B business…
- Social Media Managers
- Course Creators
- Lead gen
How do you get started?
Unpack the themes of designing, marketing and delivering RR services IN YOUR BUSINESS
6 x 1-to-1 calls
Identifying your customers
Join our Facebook Group!