Dear Business Owner:
- Do you wish your business would grow beyond your personal capacity?
- Are you looking for the “freedom” that so many entrepreneurs are looking for but never seem to find?
- Are you ready to produce predictable income & growth for your company instead of the constant ups & downs of start up?
- Do you wish you could sell your services one time & get paid for them time & time again?
- Would you love to build a company that you could sell one day because it’s not totally built around you?
If you answered “yes” to any of the above, you are in luck. In this article, I want to give you my step-by-step strategy to start a business with a recurring revenue model. I’ve used this process on four separate companies, have seen it work and now I’m teaching it to others.
7 Benefits of Starting An Information Marketing Business with a Recurring Revenue Model:
1. Once you find a customer, you can keep a customer longer
2. You will have predictable income that will allow you to work ON the business, not just IN it
3. You aren’t as stressed because you know that money will come in month after month
4. You have a WAY better chance of selling your company one day (potential buyers LOVE recurring income)
5. You can scale the business because of predictability
6. Low cost to start it up
7. The profit margins are just plain SICK!
I could seriously list about 25 more benefits, but for the sake of time let’s get into the recurring revenue model I use to start companies in different niches.
Step 1: Target – Defining three different targets – What, When & Who
- What are we going to accomplish?
- When are we going to accomplish it by?
- Who are we going to sell to?
It usually takes me about 2-3 months to nail these down properly.
Example from 2011: “Giving Rocket will have 500 paying memberships by December 31, 2011.” We SAID NO to everything that didn’t fit this target.
Step 2: Build – Create less content that people use more often
Most information marketers just throw crap together & put it together in a resource for people to buy. We spend TONS of time building a great product/membership site. One strategy I’ve used that has made us hundreds of thousands of dollars is to coach groups of people through the content before you make it a membership program.
For instance, if you want to do a membership program on losing weight. Instead of just making an online program, charge people to let you take them through the curriculum first. They will be PAYING YOU to create the content & you will be able to capture your coaching that you will use in the membership program later.
Why not get paid to create your online content by coaching people offline? I do this all the time & it’s awesome.
Step 3: Protect – Develop the important but not urgent stuff that will protect your profits
So many people skip this. While building content we build the not fun stuff too. Like what?
- Automated credit card decline sequences for people’s card’s who decline.
- Automated content delivery systems to market the content to your customers so they actually use it
- Automated upsells at certain points in the customer’s journey with you
These are VERY important pieces of creating a membership site that people pay you for month after month. Not sexy or urgent, but they will make you a lot of money.
Step 4: Work – Build strategic relationships & one-on-one connections with customers
This is the part that separates the men from the boys. If you just want to have a below average recurring revenue model, don’t do what I’m about to show you. However, if you want to successful membership programs, nothing is more important.
- Add TONS of value to the leaders in your industry. Even your competitors.
Yes. Just add value for a while. Promote their blogs & books. Interview them & share it. Write them thank you notes. Do whatever it takes to genuinely support the people that have already gone before you. Don’t ask for anything for a while, just add value.
A great example of this is Brendon Burchard. He started out by offering to be the emcee at events with industry leaders at no charge. He simply was adding value to the people he wanted to associate with. This is hard work that you don’t get a paycheck for, but when you go to launch your thing, you will be glad you have spent time helping others launch their stuff!
- Use social media to connect one-on-one with potential customers. Learn from them & listen to them deeply.
Step 5: Promote – Start email list building through free giveaways & a big launch event
We spend two to three months just building our email list & database. If you want to have a huge launch, nothing is more important. The reason a big launch is so important is because you can get hundreds of people to start paying for your membership program or product at one time.
The key here is not to try to launch too fast. If you don’t have an email list, don’t launch your membership site.
Step 6: Launch – Host an industry-wide launch event
The last two programs we launched trended #1 in the USA on Twitter. The events produce hundreds of thousands of dollars in revenue because of the amount of people that join our programs at one time. Very few people are teaching this model when it comes to starting an information business with a recurring revenue model.
Most believe you can just LEAK OUT your membership site over time & it will grow. Nope. Launch it. Don’t leak it!
Step 7: Maximize – Get all three types of buyers to buy
We have found there are three types of membership site buyers:
- Early buyers – They buy before you even launch. They trust you. We call them low hanging fruit
- Emotional event buyers – They buy the day of your big events & get in when everyone else did
- Hidden buyers – They buy after the event once you use many different forms of marketing to convert them
We spend one month after events maximizing the sales. Most people only spend a few days. We use replays, stats, & multiple forms of marketing.
Step 8: Grow – Build the team to help you grow the company
It is a lie to believe you can start and grow a recurring revenue company without paying some team members. They may be contractors, but we always start bringing on staff after the cash-flow of the big events kicks in. You will need billing help, customer support, etc.
This is a very important step that people in this space do not take serious. We buy into the lies of the internet marketers who make it seem so easy. Please do yourself a favor & ask this question before you buy another program from one of these people. “Do I really want to be like this person?” Sure, you can learn from anyone, but be careful to not get sucked into the lies.
So, why aren’t their more internet marketing millionaires? Because it’s hard freaking work! However, people have gone before you and make the path easier. I teach an entire 8 week course called Get Paid Daily on this every quarter. You can check it out here & let us know if you are interested in the next one.