Recurring revenue is the amount of a company’s revenue from customers expected to continue in the future regularly.

Examples of recurring revenue across various industries include:

• Rental income
• Equipment renting and vehicle leasing
• Advertising
• Retainer plans
• Service contracts
• Service subscriptions
• Product subscriptions
• Content subscriptions

How to Achieve Recurring Revenue

If you already have recurring revenue of some form, then you’re on the right track. If you don’t, there are several ways you can either introduce it or improve your current plan.

Examples of ways to achieve recurring revenue:

• Introduce/change service plans or client retainer agreements.
• Split your features into several different plans or packages, rather than just offering one or two.
• Build a membership program that provides unique content, services, or benefits to customers. This can also help you build an online community for your business and help you create a larger audience.
• Offer paid online courses.
• Offer SaaS integrations into your platform, if applicable.
• Affiliate marketing – Pay third-party publishers to generate more leads and traffic to your business.
• Offer physical product subscriptions, if applicable.

ACT Capital Advisors can help you prepare your business to sell so you can command a higher price. If you are interested in learning more about ACT’s sell-side and exit preparation services, use the following links: 

• Exit Preparation Services
• M&A Auction Process 
• Sell-Side Services