7 Great Recurring Revenue Business Ideas

Recurring Revenue Business Ideas

If you've been in business for a while or are considering starting a new business… you might have heard about the “holy grail” of business models.

That's why today we're sharing 7 of our favorite recurring revenue business ideas, to get you going.

Any time you create income that is predictable and reliable month-over-month, it is recurring revenue. If you're not convinced this might be a good idea, grab a copy of the book “The Automatic Customer” by John Warrillow. It's an eye-opener!

Many business ideas require hard work and persistence, but pay off in the long run because the revenue stream is consistent, which brings your business the cash flow necessary to grow.

With enough recurring revenue, you are freed to focus on providing the best possible customer service to your clientele, knowing that your time is best spent serving your current revenue streams rather than going out and trying to pitch to new customers.

As you focus on customer service, your word of mouth marketing and brand loyalty increases; this brings in new customers naturally and organically.

What Is Recurring Revenue? (And What It Isn't!)

Before we dive into the recurring revenue business models, let's first get clear on what recurring revenue is and isn't.

Recurring revenue is income generated in a business that comes in regularly, usually monthly or yearly, and that is considered very stable. Recurring revenue can be counted coming in on with a high degree of certainty.

With a recurring income model, businesses can predict what percentage of revenue may be lost each month and also how many new subscriptions are likely to join. When you're tracking membership metrics with a metrics dashboard, it's like being able to predict next month's revenue.

But recurring revenue is not a magic “make money without any work” formula. As you'll see in the examples of recurring revenue businesses below, you need to provide something of value in return for your clients and customers sticking around month to month.

Here Are Some Proven Recurring Revenue Business Ideas

The following are some my favorite recurring revenue business ideas, along with examples to inspire you.

Click to get the 6 membership site models and case studies

1. Recurring Membership Sites

A membership site is a place where you can deliver content, build community, and offer coaching or consulting for a month recurring fee. Only paying members can participate, and all of this is usually handled through a membership site plugin or platform.

These are great for increasing your customer base, managing your sales funnel and creating recurring revenue for your business! Selling online memberships can take many forms, from packaging information, resources, community, coaching, or a combination of them all.

Membership sites add value to your sales funnel by automating access to some of your products or services for a regular fee. Membership sites charge by the month or year, or both and offer access to routine services or information.

So, for example, instead of spending all your time teaching people how to use software one-on-one, you can set up a membership site that will teach them all the steps to successfully run their business using proven software.

This can also give your customers reliable and affordable support over time.

Hey, if you're on the tech-y-er side of things and want to see the ins and outs of a membership site, check out our free AccessAlly demo site here! You'll get to see some neat features and maybe find a few ideas that will work for your own business.

2. Physical Product Subscription

If you've ever signed up for or heard of the “box subscription” model then you know it's a powerful thing. In fact, it's taken many markets by storm. From shaving products like Dollar Shave Club, to clothing like Stitch Fix, and everything in between.

My favorite example of this subscription model was created by my friend Andy over at Plum Deluxe. I signed up for this monthly tea subscription program on a whim to check out what all the fuss was about… and I'm hooked!

Now I look forward to my new tea blend each month, and brewing a cup of tea each morning has become a comforting ritual that sets me up for an amazing day ahead.

Recurring subscription business model

At this point, I wouldn't want to quit my subscription and you know that's a great business model.

Creating a physical product subscription program can range in terms of complexity, depending on how you plan to source your materials and whether it's a simple enough thing to ship out every month.

If your business naturally lends itself to mailing items, then it's highly worth looking into the logistics and crunching some numbers to see if it's feasible.

3. SaaS – Software as a Service

SaaS, or Software as a Service, is any software that is sold on a subscription basis. Because of the monthly nature of cash-flow, SaaS programs naturally drive customer service and increase quality.

In 2012, Adobe switched its Creative Suite to a cloud subscription service. This one choice has drastically increased their annual income, provided their products to more small businesses and increased their value.

There were some glitches that happened while large companies like Adobe and Microsoft transitioned their software models… But they were simply taking a cue from nimble entrepreneurs and small businesses that had grown successfully with the software-as-a-service model.

One of the reasons we chose to offer our AccessAlly plugin as a subscription software is because we're constantly investing our time and efforts into improving the plugin's features and efficiency…and we know that our ongoing clients appreciate these efforts!

If you have a software package, consider offering it on a subscription basis. You can offer higher quality customer service for your customers and recurring income for you!

Recurring revenue software as a service

4. Earn Recurring Income With Affiliate Subscriptions

If your business doesn't offer software, how can you take advantage of the SaaS movement?

With affiliate sales, of course!

As an affiliate, you can direct your customers towards the products that make your business run better. They'll appreciate hearing from someone they trust, and are more likely to invest in these products to make their business run better, too.

When one of your referrals purchases the software of a SaaS program, you, as an affiliate, will receive income from the purchase, every month for as long as they are subscribers. This gives you a part of the software income, while avoiding the costs associated with developing your own software just for recurring revenue.

Not in the software recommendation space?

No problem! Many businesses online are willing to pay for help directing customer traffic to their websites besides just SaaS software companies.

To provide recurring revenue to your business with an affiliate site, you need a product you can passionately support, adequate website traffic and well-written copy to show readers why they should purchase the product you are marketing.

Many affiliate sites can bring in $500 a month in recurring revenue after a year. These sites will likely not make up your entire business, but they can help increase your recurring revenue stream with some initial effort.

Some ideas to get you going include website hosting plans, and online course subscriptions.

5. Create Service Plans or Retainers

Many businesses offer products and services that need regular renewal.

Rather than approaching a customer each time they need help with something or need more of your product, offer service packages where they pay for what they need each month.

You earn more recurring income without having to pressure people to buy again and again, and customers receive a discount on the service or regular purchase of products in exchange for the reduced hassle on your part.

So let's say you're a web designer or a freelance graphic designer… You know that your clients will need new marketing materials or a website refresh every quarter, at the very least.

So instead of having to quote them a new project each time, why not offer a package that covers your clients for an entire 3 months? Or a year-long program to keep them growing from beginning to end of the fiscal year?

WordPress Hosting

You can also offer supplemental services. These act as opportunities to increase your recurring revenue, increase the value of your business by diversifying your product line and increase customers' received value.

Whether you are a web designer offering hosting, an interior decorator offering cleaning services, or a business coach offering time management software, supplemental services provide high value for your business and your customers.

Think outside the box on this one if you're stumped. What do your clients also need when they decide to work with you? Do have the “hook up” that might save them time or money? Share it with them!

5. Combination Online Membership and Physical Product Delivery

Another idea for building recurring revenue to your business, is the combination of a membership site a physical product delivered every month.

One great example of this is from The Ornament Girl, who runs the monthly subscription Ornament Girls Club.

Recurring Revenue Companies

When you sign up for her club, you can join just for the monthly ornament ebook and videos (with community!)… or you can add a physical kit that you get in the mail with all of the necessary fabric and pieces to make the ornament.

It's brilliant to leverage the content and education, and add in the physical product on top. Two sources of recurring revenue, right there.

The Ornament Girl also uses AccessAlly to run her membership site, and automate a lot of the pieces around managing members' access.

7. Online Courses Set Up As Evergreen Programs

Similar to a membership site, online courses are a little more geared toward offering specific information unique to your business.

Often, online courses on their own do not bring in recurring income. However, with a strong sales funnel, they will bring in consistent recurring revenue from new sales.

For this to be successful, you'll have to create a marketing “crank” that you can turn to generate new business. This could be in the form of Facebook ads, ongoing content marketing efforts, or even running a social media challenge.

But once you've got some momentum going, it can turn into a source of recurring sales.

Recurring Revenue Starts With The Right Values

It's easy to get caught up in the glamour of recurring revenue business ideas… and the fantasy that you might only need to work on something once to get paid indefinitely.

That's why many business owners try to create recurring revenue by aggressively pushing their products, creating a high pressure sales funnel and disrespecting their customers. Yuck!

There's a better way!

All of these recurring revenue streams are providing something of value to your customers, that increases the quality of your business systems.

Your customers are your business, and how you treat them is a direct reflection of the type of business you want to run. Whatever method you use, focus on giving customers better service and support through your recurring revenue stream than you can without it.

Recurring revenue business examples

Recurring Revenue Comes Down To Customer Service

A happy customer is a repeat customer.

For every customer and every need they have, you are presented an opportunity to create recurring revenue through filling that need. While some recurring revenue streams are done through contracts, monthly billing and other modern reminder systems, all recurring revenue streams are based on building relationships with your customers.

Remember, the goal is to help your customers and provide awesome service, not just find a way to increase your income and get regular paydays. (But that's a nice bonus!) Take a look at our best membership retention advice here, too.

Whether you use one of these 7 revenue streams or come up with your own, leave a comment here letting us know how it worked.

We look forward to hearing how recurring revenue is working to increase your business and also to hear any further questions you may have!


  1. Laura on October 22, 2015 at 11:19 am

    I’ve been working on #7 this month so that people are guided to the next natural step and given the opportunity to purchase things they might not have realized were available to help with that step. I have some interesting ideas for #6 that I’m hoping I can launch in 2016. We’ll see how it goes. The one that really intrigues me and I’ve never explored is Saas. I’ll have to do some thinking about how it could apply to my target market but absolutely either hiring a dev to create something for me or affiliating for another company could be a really interesting new revenue stream for me.

    • ambitionally on October 22, 2015 at 12:31 pm

      Awesome Laura, I love that you’ve already been implementing some of the ideas and concepts. Sometimes we can only see “so far” ahead for our clients, but if you let them tell you what else they need then you can keep on providing options for them! :)

  2. Tara O'Connell on October 28, 2015 at 1:29 am

    One thing that I love about many of these, and (particularly for my business) #7 is the reduction in stress! Launches are stressful … the level of stress varies, but they are stressful. An Evergreen model is more work up front in terms of the marketing funnel, but SO much easier in the long run. I’m calling it the #unlaunch :)
    Tara x

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