Brief Overview

Whether you realize it or not, there’s a MASSIVE trend that’s developing in the business world… and it could save you a TON of energy and make you a lot more money.

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Big Ideas

What products & services are you subscribed to?  [00:39]

I want you to think about all of the things that you pay for on a monthly or annual basis. You’ve probably already thought of a few… Netflix, Spotify, Amazon Prime, iTunes. What else can you think of? Here are a few more ideas:

• During the summer, my wife and I have a monthly subscription for somebody to come help us take care of the pool.
• We get a box of organic fruits and vegetables delivered to our door every week. We pay a subscription for that!
• Right across the road from our office, we have two subscriptions to a car wash company – one for my car and one for my wife’s car. You can either go through the car wash one time for $11 or you can get an unlimited number of car washes for $12 a month. There are literally all kinds of other car wash companies around the city that all hope that their customers are going to come back and buy from them. Not this one!

Is the recurring revenue model only for bigger companies? [05:16]

The recurring revenue model isn’t just restricted to the Apples and the Amazons of the world. Here’s another great example. Anna Digilio is a former teacher who used to teach grade 2 and 3. She was phenomenal in her classrooms in terms of helping her students get results. So, the other teachers started to ask her questions and she started sharing and selling her lesson plans. But in the beginning, she was only selling them one at a time. And then she realized, “Hey, you know what, these teachers don’t need one lesson plan. They need these lesson plans every single month.” So she transitioned to a membership site and now has over 2,500 monthly subscribers in a one-year period.

How can a recurring membership site serve you and your customers? [08:00]

This is one of the most exciting times because there’s this emergence of two big trends. Number one is that consumers are more and more accustomed to paying on a monthly or annual basis for things that they enjoy. So, the market is mentally prepared when it comes to paying for this kind of stuff because we do it all the time now. If you just look at your credit card bill, chances are the vast majority of the things on there are recurring charges. And then you combine that trend with the fact that people are paying more and more and investing more and more in themselves.

Whether you’re sending physical products or digital products, this whole emergence of the membership and recurring subscriptions is here, and it’s here right now. It gives you and I as entrepreneurs, way more stability in our business. And when we have more stability, we now have more creative freedom to invest in marketing to make it spectacular. If you’re always on this hamster wheel of promotion, promotion, promotion, you will never have time to actually get creative.

The people who have recurring revenue in their business, they can go deeper with their customers because the whole idea with a recurring membership site is that you get rewarded for taking care of your people.

How to keep your customers coming back again and again! [10:42]

As long as your customers are happy, they’re going to continue to pay month after month. Which is unlike traditional business models where the customer pays for something and that’s it. In most cases, that’s the end of the relationship. You never really hear from them again and there’s no incentive to. But with a membership, it’s totally different. With a membership, you get rewarded for your ability to keep people happy. This is why I love this business model. If you just focus on incorporating a recurring revenue stream, you have more stability, a consistent cash flow, less stress and you’ll form a much deeper relationship with your customer base.

Memorable Quotes

“As long as your customers are happy, they’re going to continue to pay month after month.” – Stu McLaren

Resources

TribeWorkshop.com

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