Recurring Income for Your Online Business
One of the secrets to a successful online business is to generate income every month without having to do loads of work. Sounds great, but how?
There are traditional 'offline' businesses that have a 'recurring or residual income' model. This is income received on a regular basis, month in, month out.
For example, this could be rentals received from a property, royalties from publishing a book or income from a license for an intellectual property (such as computer software product).
Are you paying your mortgage or rent on a standing order or maybe a utility bill?
That is the same thing. Those companies have discovered residual income long time ago,and you pay every month to keep their services.
A great business model for your online business. But, you still need to ensure that your customers, who pay on a regular basis remain satisfied with your product or service or they will go elsewhere and stop paying you.
Have you ever been caught in a contract that you want to get out from but you are unable to cancel due to financial penalties? I have. You know what it is like - you endure the rest of the contract and when that renewal date comes along, you move as quickly as you can to get out of the contract and resolve never to go back.
There is nothing worse than paying for something on a regular basis that you feel does not provide value for money or high levels of customer service and that you cannot escape from - or if you do, will cost you dearly.
One of the daily challenges of running a business - whether it is a traditional offline business or an online business - is ensuring that you have sufficient cash flow coming into the business each day, week, month, year.
And we all know how hard business is in the current economic climate.
One of the secrets to a successful online business is to generate an ongoing or recurring income. This means you earn income every month without having to do loads of work. Sounds great, but how?
In the online world you can get start being paid residual month on month by simply referring people to a membership site or recurring billing programme like an autoresponder or website hosting. Literally anything that pays you monthly or regular commissions!
Don't forget that the customer still has to remain happy. As long as they are happy, they will stay and they will pay, so the product or service has to be continually offer value.
Most people don't stay forever and the length of their membership is called 'stick rate'. So if you choose to refer a product or service, make sure it is one with a good 'stick rate', simply meaning people like it, get great value and stick around!
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ABOUT THE AUTHOR
To learn how you can quickly and easily get started earning money online from a fast growing profitable market without, any previous training, knowledge or even your own products to sell go to http://www.jonallo.com