Create a Recurring Revenue with Software

If you are a business owner or are looking to start a business, I’m sure you will have heard about this fantastic business model. In this short article, we will give you a quick rundown of how this model works. We will also provide you with some ideas of how you can create a recurring revenue with software in your business.

What is a Recurring Revenue Business Model?

A Recurring Revenue Business Model is where you have a product or service that generates a regular income. When you attain a client on a recurring revenue product, you will know the exact amount of income you will receive from said client. Plus you will know exactly when it will be received.

Although there will of course by turnover in clientele, generally it’s an extremely stable source of revenue. If your service or product adds real value then you will consistently be able to bring in more new clients than you lose.

What are the Benefits of a Recurring Revenue Business Model

The major Benefits of a Recurring Revenue Business Model are all to do with the fact that the income is consistent, predictable and scalable. That means that once you have set up your product, provided you are adding real value and can generate a steady flow of leads, there will be very little upkeep. You can just sit back and watch the money flow in.

Any business owner employing such a model will reap the following rewards:

How do you create a Recurring Revenue with Software?

In my opinion, it’s much more efficient to use software to create a reoccurring source of revenue. That’s because you can leverage the automated nature of software to deliver a product that requires a lot less facetime than non-digital products. This type of service is called Software as a Service (SaaS) and has the following common attributes:

To create SaaS software, you must leverage your intellectual property and digitise it. What this means is that you need to harness whatever makes your company unique or sets it apart from competitors and deliver this value through digital means.

I realise this is vague but that’s because every business is different and as such it’s incredibly hard to generalise. Therefore I’d highly recommend that you sit down with partners or a good yech provider and come up with a solid tech strategy. Hopefully, the below will be able to give you some inspiration.

Attributes of a Successful SaaS Product

Not all SaaS products are born equally. That means when you are designing your product you should ensure that they tick most if not all of the boxes below:

Ideas for creating a Recurring Revenue with Software?

For the sake of this article, I want to concentrate on ideas that existing businesses could leverage. Remember the idea here is to leverage the skills and expertise that you already possess and turn it into a digital product. Here’s some inspiration:

On top of the above, you could choose to create a completely new digital product or even move into a different industry. There is truly no limit to what a SaaS product could be!

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LinkedIn Specialist | UI/UX Designer | Marketeer | App Developer

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