Recently spoke with an entrepreneur making 250k/year.
They know their avatar, have a good reputation in their industry, and are competent in their delivery.
The problem is they only have one-time sales offers.
Their offers range from $2000 - $15,000, depending on the project.
When they have a good month of lead gen, sales are rocking.
But a bad month of lead gen, hurts bad.
Their projects are very milestone based and typically once a project is completed, it doesn't need revision for a few years.
This type of business will always be on the hunt for new sales.
Every month will start close to zero.
Every month they will wonder about their sales projections.
Every month, they will test different lead generation strategies.
And at the end of the year, they might begin to question their business model.
If they were to introduce a monthly recurring revenue component to their existing offer(s), their revenue has serious growth potential.
Think of a maintenance plan when you buy a laptop.
I just bought a Macbook Air 4 days ago, and then bought Apple Care (maintenance plan) which gives the business additional revenue.
That additional revenue you can create with a monthly maintenance, support, etc plan multiplied by 6-20 clients could be enough to create an entirely new revenue stream into your business.
The same business owner making 250k/year could easily make another 50-100k/year with a maintenance offer.
Maintenance offers could be support calls, ad-hoc trouble-shooting, spot coaching, and hundreds of other possibilities.
When you feel like you have a good handle of one-time sales, and you've been in the 20-25k/mo range for a while, consider testing a monthly recurring revenue offer with your market.
You'll either learn a lesson, or create a new revenue channel.
Either way, you win.
