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The Prescription May Be Subscriptions

How can you simultaneously make your forecasting easier and improve the salability of your company? Figure out ways to turn as much of your revenue as possible into recurring revenue. This may be with the use of renewable subscriptions or service contracts. A few examples of models you can use to capture recurring revenue are:


1. The Simplifier Model – Set and forget. A good example is Richmond, VA based Mosquito

Squad. They offer an automatic misting system that sprays on a timer, with periodic refill and

maintenance. The customer does not have to “lift a finger.”


2. The Front-of-the-Line Subscription – For people who do not want to wait. Disney’s Fast Pass attracts people who want to go to the front of the line. With that, they created a new revenue stream with regular subscribers.


3. The Consumable Model – We never run out of the consumables we use daily. Michael Dubin and Mark Levine founded The Dollar Shave Club in 2011. They recognized that people disliked having to go to the store to buy expensive razor blades.

John Warrilow filled his book Automatic Customer: Creating A Subscription Business In Any

Industry (2015) with creative ideas that help business owners transform their companies into

subscription businesses. In Automatic Customer, Warrillow offers several options small business owners can use to capture more recurring revenue. I recommend the book for all business owners who want to immediately increase the values of their businesses.


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