3 Keys to Making Passive Revenue (with a subscription biz)

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Business Made Simple- 3 Keys to Making Passive Revenue (with a subscription biz)

KNOW THIS:

1. A subscription biz = predictable income.
2. You get to know your customers waaaaaay better when it's a long-term relationship.
3. It gives your company a much higher valuation.
4. There are a lot of hidden costs to consider and it'll take a while to get your money back.
5. If the customer doesn't stay, you lose money.
6. You're probably going to fail with the first iteration (don't feel bad, most people do). 
7. People don't always need to learn more, eventually they need community and the ability to give back.

DO THIS:

1. Solve a problem on an ongoing basis. 
2. Create a strategy.
Ask yourself:

• What is it that you're delivering?

• What is the value of your promise? Ex: you're shopping for a white top for work; not because you want a white shirt, but because you want to look chic at the office.

• Who would be a great customer vs. a bad customer and how will you recognize them?

• What's your financial risk?

• How big is the opportunity?

• What's the best first step to take?

3. Start small with a 3-month transaction.
Ask yourself:
Does my headline attract people?
Do the people in my new group like to talk to each other?
Can I create community around this?
4. Think long-term. Create something that actually could go on forever vs. a dating site where your best customers hopefully won't be dating long.
5. Community, belonging and status keep people around. Provide value as people move through their journey. 

FULL EPISODE >>  

The Forever Transaction by Robbie Kellman Baxter
Free membership manifesto

"Any business that depends on customer relationships can build a subscription service." -RKB