Everyone dreams about setting up a recurring revenue business. After all, not having to worry every morning about where your work and income are coming from is a wonderful place to be as a small business owner.
The truth is, there are so many recurring business opportunities for you to grasp with both hands. Many of them are online, but there are still ways to launch recurring revenue businesses that deal with face-to-face interactions. So, without further ado, let’s explore what we mean by recurring revenue before introducing you to eight recurring business models you can try.
What is Recurring Revenue?
Recurring revenue is a business model that you can rely on for a predictable source of revenue. When done correctly, recurring revenue businesses can run relatively independently, allowing you to focus on other income-generating activities.
But the main benefit of starting and maintaining a recurring revenue business is that it provides you with peace of mind and means you’re not worrying from paycheck to paycheck. Thankfully, there are multiple recurring revenue business ideas, and we introduce you to some of the best to get started with in 2022.
8 Recurring Business Ideas to Try in 2022
Here we go...
1. Refill Product Subscriptions
Launching an e-commerce business is a popular and successful way to start a business. Some people opt for a drop-shipping approach, while others put a great deal of effort into product development. Either way, a great way to turn your e-commerce business into a recurring business opportunity is to sell refill product subscriptions.
In other words, you need to create a product that people use all the time that they will come back to you when they need a refill. It could be anything from coffee to ethical toothpaste, but the key is to sign them up for a subscription that automatically renews each month. People who have success with dropshipping businesses are able to rely on multiple income streams without worrying a great deal about product inventory and subscription renewals.
2. Membership Site
An inventive way of monetizing a website is to keep your content behind a paywall. Whether it’s a forum, a sales community, or any other general-interest topic, a membership site is a great way to earn from a recurring income business. Sometimes known as the all-you-can-eat library model, you provide unlimited access to your content for paying members.
Many membership sites have associated apps that users can benefit from, so it’s a good idea to look into creating something for mobile simultaneously. Membership sites can either charge monthly or annually, but securing those annual subscriptions in advance allows you to predict how much money you will earn throughout the year.
3. A Special Interest Niche Blog
While it takes a fair amount of time, effort, and skill to get going, creating a special interest niche blog is an excellent recurring income business opportunity. If you successfully monetize your blog - be it with ad revenue or through affiliate marketing - you can rely on a set amount of income entering your bank account every month. Granted, you need to choose a site in the right niche and hit a certain number of page views per month, but developing a portfolio of high-traffic niche sites can be extremely lucrative.
What’s more, when they begin to plateau in terms of page views, you simply need to maintain them, and you don’t need to continue producing content at the same rate. As such, establishing several special interest niche blogs that receive lots of visitors every month can be a highly lucrative and successful recurring income business.
4. Online Courses
Another recurring business idea is to create an online course. In today’s marketplace, people are willing to invest in their skills and typically look to freelancers and those that have a proven track record of something to show them how to do it.
Therefore, if you have a skill that earns you money, you can probably create a course that highlights your journey to success. You can show people exactly what you’ve done and how you’ve been successful, and they will be keen to sign up.
Similar to subscription sites, you can charge an annual or monthly fee, depending on the content of your course. You can then decide what level of access to provide them to your course for that fee. If you get the pricing right and invest in marketing, you will be able to grow your business and rely on the recurring revenue from your online courses each month.
5. Digital Downloads
The marketplace for digital downloads is expanding, and we’re not necessarily talking about NFTs! You can sell digital content to people who are looking for something specific. For instance, if you’re a photographer, you could sell access to your pictures - much like sites like Shutterstock do. You could even sell templates or themes that you’ve created for software or websites.
You can sell digital downloads on a monthly basis for a recurring fee, which prevents users from abusing sites by taking advantage of a free trial and maxing their download limits.
6. Food/drink Subscriptions
Moving away from the online space for a minute, food and drink subscriptions are super popular right now. To get it right, you need to focus on niche aspects of the market.
For instance, a monthly subscription to a hand-crafted ale box or even to a delectable European cheese selection would work really well. There is a little more work with these types of subscriptions, as you need to put the time and effort into sourcing your products. But again, when you sign people up for subscriptions, you can rely on that recurring income each and every month.
7. Private Clubs
While we don’t all have the resources to buy a golf and country club up-state, you might be able to create a private club online. A great example of this would be a bespoke networking group that you facilitate. You can invite people to join based upon specific criteria and pitch the opportunity as an exclusive networking opportunity for members to grow their businesses. You can then also sell group coaching packages and diversify your income in other ways once you’ve created the group foundation.
8. Simplifier Businesses
If you can promise to make life easier for your customers, there’s a good chance that people will be interested in your services. The beauty of the simplifier business model is that it’s applicable to all industries, for instance:
The key thing here is to provide a service that saves your clients time and effort. In other words, you’re simplifying their lives. Most people are willing to pay for this convenience, and you can typically agree to a long-term deal, be it a form of a retainer or even on a contractual basis.
Recap: The Best Recurring Businesses
As you can see, there are so many recurring business opportunities out there. Something that we love about this model is that you can typically grow this type of business to a certain level before essentially leaving it to its own devices.
And the more businesses that you can run simultaneously, the more potential you have for profit, which is something we can all surely get on board with!