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What I want to get into today is how to create a recurring revenue stream. One of the things that I teach in the Total Transformation Summit is how to develop multiple streams of income and specifically how to create recurring streams of income. Even more importantly, recurring passive streams of income, and that’s what I want to get into today. To create a recurring stream of income, there’s a couple of things that have to be present. Number one, you need a demand for that product or service. Ideally, you want that to be a product or service that is either consumable, meaning that it’s not a one and done purchase, but it’s something that is going to be needed over and over again. For example, I went to Home Depot earlier and bought salt for my water softener tank.
That is a consumable. It’s something I’m going to have to go back and buy over and over again. It’s not a quantity that is going to last. It’s going to get consumed as part of the usage process. By the same token, if you’re providing a service, maybe what you want to do is utilize a subscription or a retainer type model. In my marketing company, I utilize a retainer model. So there is a monthly billing that occurs. It’s automated and that billing is what allows the customer or the client to receive the services that we provide for a monthly period.
Now, what we’re talking about also is creating other streams of income. And so one of the things that I am still a fan of, and to some people it’s a dirty word, but I’m going to explain to you why I’m a fan of it, is direct sales, meaning sales direct to the consumer. So for many years I have had an automotive and industrial lubrication business that is direct to the consumer. That business runs on a system, in this case, several videos. And every month I have new customers who enroll to purchase those products and buy those products as they need them in their cars, motorcycles, ATVs, industrial equipment.
But what I love about it is it’s become very passive. It runs off of a series of YouTube videos that I created a number of years ago. People reorder when they consume their quantity or in this case with motor oil when it’s time for their next motor oil change or their next maintenance cycle. Other things that I really like are consumer products because again, those are consumable. The other great thing with those as they are low priced and so that is one of the systems that we love to work with is those household consumable products that people are going to utilize on a day to day basis.
Now here’s the reality. It’s not a very sexy business, but it’s a very efficient business. And so one of the things that comes about with that type of business is you have to build a good customer base to really make that profitable because you’re not dealing with high ticket type items. But here’s the good news. Using technology today, it is not hard to build a large customer base in that type of business. So those are a few thoughts for you today. What I want you to really give some thought to is what things are available to you that are consumable that you could begin to create another business for yourself or even make that your primary business. The reason that I’m don’t necessarily always like using some of those things as a primary business is because oftentimes in a direct to consumer situation like we were discussing, you don’t control all of the outcomes.
Now that’s one of the reasons why my primary businesses, my primary places that I make money, I control the whole process start to finish. So there are no variables outside of my ability to influence them. However, for additional streams of income, additional sources of revenue, there are many great direct to consumer businesses out there that you can be involved in as a point of sale. And so if you’d like to know more about some of those businesses that you might want to take a look at, just shoot me a message or drop a comment in the comment section and just say, “Tell me more.” And I’ll reach out to you in a direct message and give you a couple of things you can take a look at. Anyway, I hope you have an amazing day and I look forward to talking with you again soon.
