The Benefits of Recurring Revenue

A revenue model based on subscriptions or auto-renewal is an excellent way to set up a business for long-term success. Recurring revenue ensures you are getting paid even during slow economic times and even before you walk in the door every morning. Every hour/dollar you spend obtaining a new customer will continue to pay you back over time. Since it is much more expensive to obtain a new customer than it is to keep a current one happy, a one-off sales model is inherently more expensive. Obviously, recurring revenue is not possible for every product or industry, but if you think creatively, it can work in many cases.

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