Creative Ways to Create Recurring Income as a Service Provider
Creative Ways to Create Recurring Income as a Service Provider
Welcome to the Business Ease Podcast. This episode I want to talk about recurring income as a service provider. It comes up frequently with my clients inside my Memberships. I think this is one of the best ways to reduce financial anxiety or stress as a service provider, no matter what service you provide.
Let’s dive in!
WHAT IS A RECURRING INCOME STREAM?
In my journey of being a service provider, I have always had a recurring income stream. The reason for that is because I've created packages around recurring income. I need a certain number of clients a month to hit my income goal and then anything else above that is a bonus.
So, for example, if you want say $5000 a month, sustainable every month then you have a package for $1000. You are going to need five clients per month and once you've got that, then you will get a recurring income of $5000 per month income. Your other offers that may just be project based or one-off can buffer around your main income. This can help you hit higher income. You are not starting every single month with $0.
Obviously, your ability to do this is really going to depend on what service you offer. Creating a recurring service as a social media manager is a lot easier to do than say a photographer. Context most definitely matters. I genuinely think that every service provider can find a way to create some form of recurring income stream though.
Generally, I think that it's always good to put a focus on generating that predictable, recurring income stream. From there you can then build upon that with your other offers. You've hit that mark of sustainable income, then you're going to ask yourself how do I want to buffer this?
Also, when you're marketing, it's not from a place of financial stress and pressure.
I think that's why a lot of service providers do coaching or memberships because that's the easiest way to create recurring income. I think a service is such a good way to do this. You actually have a much higher retention rate because you are directly filling a need. You are completing something for them rather than them learning to do it themselves.
I'm very passionate about creating a recurring income stream, and if you want to brainstorm this further then definitely get on the wait list for the Accountability Club.
CONTEXT
Of course, it does depends on context. If you are a social media manager, obviously it's a natural recurring service and it's pretty easy to sustain that.
You’ve basically got to ask what does your ideal client need? Part of this is you doing some market research around this.
For example, if you are, say a graphic designer, you could offer a service that helps do a design revamp of their business website on a quarterly basis. Look at what design elements they need. Could I look at what service providers they need and offer a recurring service to them as a contractor?
I recommend two things, number one thinking outside the box. Number two doing market research around what someone actually would pay for on a monthly, quarterly or yearly basis. Bearing in mind, you’ve got to make sure that this fills a need so that they do retain you over time.
Having that recurring income stream brings a lot more stability around hiring team and adding in your other services around that. It's never fun wondering where your next paycheck is coming from!
If you don't feel like you have that financial predictability, then I recommend that you start looking at what recurring service you could create and start to book some clients for that service.
Thanks for listening to this episode of the Business Ease Podcast. If you found this episode helpful, I would love for you to tag me on Instagram @withHannahandCo and share your biggest takeaway from this episode. I would love if you could leave a 5-star review. Those two actions mean more than you'll ever know, and I can't wait to hang out with you on next week's episode.
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