The importance of building a recurring revenue

Entrepreneurs, authors and business experts like Dan Norris, John Warrillow, Troy Dean and many others like to talk about recurring revenue and its importance for a business. When it comes to business, recurring revenue (RR) is a very good indicator of potential growth, cash flow and business stability.

For instance, when it comes to subscription-based SaaS (software-as-a-service) companies like Moz, Hubspot or Salesforce trade in the public markets for more than 6x the revenue, and those with annual revenue growth over 40% usually trade for over 10x. But recurring revenue is also relevant in any industry – from telecom, healthcare or banking to even large capital businesses implementing “business-as-a-service” model as well.

What does it have with bloggers you’d ask? A lot. You can turn your readers into subscribers or members and build a recurring revenue based on your blog.

Blogging for recurring revenue: $5 Dinner Mom Business example


Back in 2008, Erin began couponing and since she loved to cook and think of creative ways to save money, she started a challenge: coming up with a meal that costs less than 5 dollars. She started blogging about it, and pretty soon, the whole thing exploded.

With such a strong viral growth she started capitalizing on the momentum to earn from ads and affiliate programs.

She then transitioned from just ad networks and affiliate income to selling meal plans directly to her audience, and then switched to a membership model after two years of publishing and selling meal plans after the viral hits.

For more details, we recommend to check out 5dollardinners and 5dollarmealplan.


How YOU can create a recurring revenue models based on your blog

It’s pretty much a question of your creativity, any kind of membership-based site could do if you have good content.

If you have an expert blog on anything from marketing to healthy living, you can create groups where you share your knowledge and tips (sometimes, even a Facebook group can do). You can have subscription-based webinars/courses.

Members only content is also a good option (but it’s always a matter of balance between how much content you can keep for members only vs. how much content you should distribute freely).

You could also offer monthly/weekly consultations based on membership.

If you have a blog on fashion, you can offer subscription based tips fashion tips or even shopping ideas.

Are you interested in healthy and active life? Create exercise plans based on subscription model.

There are really many different possibilities, but the most important tip to remember is to learn with and adapt to your members step by step and continue to create good and useful content!

P.S. If you’re looking into ways to monetize your blog, check out our post on 4 ways to earn money on your blog!

Milos Belcevic
Milos is the COO at Opinodo, with a background in project management, biz dev, marketing, communications and journalism. He worked as a freelancer on various projects for clients from more than 15 countries before joining Opinodo to take part in shaping it. He has passion for literature, touch for storytelling and heart for startups.
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