Building Consistent Income for Your Business
Building Consistent Income for Your Business
Consistent income is the bloodline of your business!
In this week's blog post of Aligned & Ambitious, I’m diving into recurring revenue and how it can build huge consistency for your business. I’m also sharing tips on how you can go from having ups and downs each month in your income to consistent income.
But before we dive on in, let me introduce myself. My name is Taylor Slango and I’m the host of Aligned & Ambitious Radio and a business coach who helps women make major bank through their own online businesses.
So if you’re an ambitious millennial, wanting to get more out of life and learn how to combat those who doubt you along the way, stick around. This blog post is for you!
And today, I’ll be covering how you as an entrepreneur can ensure your overall trend of income is almost always rising, rather than going downhill. It’s normal to have months of a plateau, but as long as you overall see growth, that’s the key. Keep reading to learn more!
Building Consistent Income for Your Business, Point #1: When it comes to payment plans for self-study courses, ensure you have proper terms and conditions set up, and that you are protected.
When it comes to consistent income, payment plans are great! However, as far as extended payment plans on self-study courses, here is a potential issue. Someone can come into a course on an 8-month payment plan, take the course within 1-2 months, and wiggle their way out of the payment plan. I highly discourage using PayPal for this reason. With PayPal, your client can go into their account and cancel out of their subscription. PayPal also has a preference for the consumer rather than the seller, so if any disputes come up, it’s more than likely that you will be at a disadvantage as opposed to the buyer.
These are just CEO mindset shifts we have to start making when it comes to recurring payments. I highly recommend utilizing Stripe for payment plans, Stripe has great settings and features for you to adjust to your needs. When it comes to collecting payment plans, specifically self-study courses, it is okay to make them longer. For example, my 5 Figure Flow program had an 8-month payment plan offered that worked out quite well. It’s normal for a few people to drop off along the way, but that’s why it’s so important you have proper legal protection set up when it comes to your business.
Building Consistent Income for Your Business, Point #2: When you’re doing a live coaching container, avoid extending the payment plan too much.
To build consistent income for your business, make sure you’re not extending payment plans too much. Here’s a personal example of mine, I take a client and work with them on a 3-month contract. They opt for a 6-month payment plan. The client completes the 3 months, they do very well and gain transformative results. However, when the contract ends, the payment doesn’t.
A few things happen here. Firstly, if a client wants to move into a new level with you, they face a barrier of the payment plan they’re still involved with. I find that you can’t continue with most of these clients since they’re still locked in that payment plan.
It’s so important to look at your offerings from a high level and make sure you’re giving clients payment plans that will work long term. Ask yourself, what is your vision for that specific client? After this contract ends, will they be locked in a payment plan still? I stopped doing extended payment plans now for this reason. Now for one-on-one coaching, it is a flat non-negotiable rate. If we work well together and vibe, I may extend an additional month out, that would require them to pay before we started that new month. Always be sure you are holding boundaries and not feeling as if you have to please people.
Building Consistent Income for Your Business, Point #3: No matter what you do, it’s always good to have a few clients on retainer to stack your revenue.
One of the most effective ways to build consistent income for your business is by utilizing retainer clients. With retainer clients, it’s a good idea to have a few clients at whatever capacity, this becomes easy when you focus more on building the retainer clients. For example, a course is great, however, long term if you have 3 retainer clients at $1,500 a month, you’re already producing $4,500 in recurring revenue. Even if you don’t sell anything, that’s almost $5,000 a month.
Viewing recurring revenue from this perspective is a lot less intimidating than selling out 50 spots in your course. Of course, we want longevity and passive income, but the magic in business happens when you have a healthy mix of both high ticket clients and passive offers.
For me, If I have a retainer client on a 12-month contract at $2,100 a month, I know that if I sign 3 clients just like this, that’ll be $7,500 a month recurring just from retainer clients. I view all my course launches as extras on top of this. With courses and launches, especially if it’s limited offers at a low ticket value, it can be hard to build this stacking effect and get recurring revenue into your business.
Building Consistent Income for Your Business: Main Takeaways
When you’re a business owner, you must look at everything long-term if you want to build up consistent income. One of the biggest long-term strategies you could implement is recurring revenue, and there are many ways you can do so. Don’t get too caught up in the now, make sure you are planning and most importantly, setting up the proper legal protection for you and your clients.