How to Build Recurring Revenue in 2019
Income uncertainty is one of the scariest things about being a freelancer. However, with the right strategies, you can create peace of mind by establishing recurring revenue and mapping out your finances.
The following is a look at some of the most helpful strategies and insights for generating recurring revenue and improving income consistency.
Drive Retention with Great Performance
About 40 percent of the income earned by freelancers comes from repeat customers. To build a strong foundation of repeat business, know your ideal target clients based on your best talents and most profitable activities. Prioritize these clients and activities in your promotional efforts.
Demonstrate your value by consistently delivering high-quality work that exceeds expectations. First-time clients are often testing the waters of freelance source. Make yourself valuable and potentially indispensable to develop a core set of long-term client partners.
Develop a Subscription Model
A lot of freelancers operate with a one-off pricing strategy. They charge clients by the work. However, subscription models are a great pricing approach that allows for more sustainable activity and predictable income.
Though some freelance work is prohibitive, a lot of freelancers could convert to a subscription setup. Offer various pricing tiers depending on the level of production a client needs. At the end of a subscription period, up-sell clients based on established results.
Identify Evergreen Business Needs
Try to align your abilities with business needs that are more evergreen. The best way to sustain income with a client is to focus on solutions that are never-ending.
Web specialists, for instance, can offer website management and maintenance services. These are ongoing needs for companies that want to keep up with industry players. Social media management, content writing, accounting and software development are some other examples of products and services that freelance clients likely require indefinitely.
Serve as a Consultant
In addition to your regular products and services, identify ways to market yourself as a client. In some cases, companies need outsourced experts to contribute to strategic conversations, answer technical questions and engage in implementation. A consultant role allows you to extend your relationship with a client beyond more one-off product needs.
You could offer consulting services on a monthly retainer or as part of your subscription plans. Ideally, the client views you as an extension of the business.
Offer Payment Plans
It is usually easier to get clients to invest in higher-end project or subscription solutions if you allow them to spread out their costs with payment plans. Payment plans reduce the amount of each payment and assist clients in managing their budget requirements.
For freelancers, a payment plan lets you know how much to expect for each payment and when the payments will arrive.
Even as freelancers attempt to grow, these strategies help you establish a foundation of recurring revenue to sustain your quality of life. Implement these successfully to remove some of the uncertainty that is common in the freelance world.