Part One: Prelude to Creating a Subscription Based Service Business | Episode 139
I like to call it free money…
Have you ever thought about this each time you do business with a company?
I may be the only one, but I don’t think so. Like how when I sign up for the phone company. You get billed monthly.
I sign up for a CRM system it’s on a monthly basis, I get charged every month. When I sign up for Amazon Prime it’s a subscription and when I signed up for QuickBooks it’s a monthly subscription.
Every time I go to buy something for my business, it becomes a product of reoccurring revenue for the provider. Every time I sign up for something ongoing I think, “Man I wish I could I have a business like this.”
A subscription based service business. Why NOT a subscription based service business of reoccurring income that I can charge my customers on a monthly basis? So it got me to really thinking more about a completely different thought process.
So over the next couple weeks on the next couple of podcasts, I’m going to take an in depth take a look at normal business… the way we think about a “normal business”.
And then transition of the thought process over to how to create reoccurring income.
What it is. What can it look like?
What can it mean to your bottom line, not only form a financial standpoint, but for me to have a secure predictable income.
A business that has more future value, especially if you’re want to put yourself in a position to sell your business.
Let’s go back to the beginning and look at a traditional business. The way most of us (98% businesses) are set up that is basically.
You market and get new customers. Sell them once and you go get another new customer to repeat the process all over again. I’m going to say that if you are in the 98% of business owners, this is what you do you get a customer. You sell the customer, you put them aside and hope that they will call you back if they need your services or products in the future and you go get another customer. Always complaining, saying I need new leads, I need new leads.
If you use this model then you have to just keep this monster growing so that you can pay the bills, provide the income to keep your employees and this entity that you’ve created going.
Basically what most business owners do is create a transactional business. That’s what it is… you get a customer because you need to feed the entity that you have created.
And continue the process over and over and over again completely ignoring the customer that’s done business with us in the past.
I know we talked a lot about this in past episodes…how your best customers should be a raving fans, when you get a tremendous amount of referrals from but we’re talking about a new business right now.
So you go get more leads, selling new business and just hoping that one of your past customers will call you when they need something done. Sure, you hope they call you because you gave them great service and a great value.
Then one day you’re driving in that customer’s neighborhood and your thinking about your customer. Thinking that it’s about time for them to call me. And BAM your competitor is in their drive way doing the work. Man that stings.
You can actually have your customers become so dependent on you that you have them for life.
Dan Kennedy said you put them in a corral and they’re not going to leave you because they are financially tied to you. We will talk more about that in detail in a future episode, probably the next on this subject.
So, for this thought process you need to focus on how can I make my business better? How can I serve my customers better? And make more money without spending a fortune and giving them the quality and value of service they’re paying for, even if it’s a high price.
So next time we are going to talk what can a subscription service based business looks like. What are the selling points to your customers and why you are going to be proactive and set them up on regular scheduling?
And we will talk about the most inexpensive way to achieve this.
If anyone has set up a subscription based service business and would like to share with this audience on what you are doing and then results you are getting Contact me at firstname.lastname@example.org and we can get you on the show.