S7E7 | Forms of Recurring Revenue
Sandra discusses different forms of recurring revenue, and shares how a predictable income can completely change your business.
“So what can you do with this predictable income? You could stop launching over and over because you know how much money is coming in to you. You won’t be panicking one month because you didn’t launch last month.”
Ever since the beginning of this year I’ve been hearing my entrepreneur friends talk about MMR, or monthly recurring revenue. This is the amount of money you make over and over again in your business thanks to subscriptions, memberships, or payment plans.
Having a predictable income is great, you know what’s coming into your pocket each month. With predictable income, you can stop launching over and over because you know how much is coming in each month. You can even afford to hire a team, or take a vacation without bringing work with you.
Recurring revenue provides you with stability, and can give you more free time to do the things you want to do, like writing a book or taking up a new hobby.
There are two forms of monthly recurring revenue (MRR) and annual recurring revenue (ARR) that have been getting a lot of buzz since the beginning of the year. The first type I’m calling “fill your funnel MRR,” and the other I call “high level MRR.”
A fill your funnel MRR is a membership that gathers all of the audience members who haven’t bought from you yet, and it puts them in a paid community with resources. This is a lower cost membership, which can range between $47-$97 a month. (Though this can vary depending on who you’re serving.)
This lower cost membership gives people a taste of all you have to offer and what it’s like to work with you. This also creates the perfect environment to upsell your higher programs, because this is like a group of paid leads. Fill your funnel can gather people who are new on their journey or new to you, and it helps them to decide if they’re ready for a deeper commitment.
A high level MRR is a membership that offers access to you. This is a community of members who are further along in their journey and already know, like, and trust you. This membership can be looked at like a mastermind or high end coaching program, and it can be a great offer for people coming off of other short term offers. This type of MRR membership can range to over $500 per month.
Although high level and fill your funnel are two different types of MRRs, I decided to create two different workshops for these memberships and run them together. You can buy these workshops here!
Thanks for listening, and I hope to see you in those workshops!