Everybody loves recurring income...
But, do you know what’s the most critical thing about recurring income?
Is that it recurs.
And, in order for it to recur…
You’ve got to keep it recurring.
I know, this may sound like double talk to you. But it’s not. All I’m saying is…
If you want to keep your revenue recurring, there must be some orchestrated effort to it. Because it won’t just happen on its own...
For example, say you run a monthly subscription service. And, as we all know, no subscriber stays with a service forever.
Which means, in order to keep your revenue stable… You need to bring in new subscribers just to compensate for the ones who cancel.
That’s why one of the best metrics you want to look at when it comes to your monthly subscriptions is what I call "Subscriber Multiplier Index."
And the goal of this index is simple: You’re not just focusing on the conversion of one new customer. Or just one new subscriber. What you’re trying to achieve is the multiplication of that.
Or, to put it simply, whenever a new subscriber joins your service… how many additional new subscribers do you get on the back of that? How many referrals can you get in that first 60 or 90-days of a new customer?
That’s where your leverage is.
Because here’s the thing. People are predictable. Whenever we try a new thing for the first time, we talk about it to everyone around us. Our friends, colleagues, neighbors… and so on.
Whenever we try a new thing for the first time, we talk about it to everyone around us.
And the period we talk about it the most is those first 60 to 90-days. That then becomes your opportunity to create a multiplier.
Of course, what your multiplier is, depends on what business you’re in.
But to give you an example…
If you’re running a subscription box for a ready meal service... you could give each new client that joins three golden tickets or gift cards to give to their friends.
So that now, next time they talk to their friends, they can say…
"Oh, you know what? I tried this new meal service. They're delivering meals right to my house and they're delicious…. Here, I've got a gift card for you. You can try it, too.”
See what you did there?
With one simple adjustment, you turned one new subscriber into three…
Or, as I like to say it...
You’ve put the ing in recurring :)