My Favorite Business Model Ever

Wow!

The response to my email about monthly recurring revenue was incredible! I had a feeling some of you might be interested in learning how to create subscription income, but I wasn't expecting so many people to write back and say YES!

So let's get started with Day 1. Grab a pen and paper!

Today we're going to answer two questions: What exactly is monthly recurring revenue (MRR), and why do I think it's one of the best business models around?

It's surprising how few people talk about this opportunity. Maybe they don't understand it. Maybe they don't realize how accessible it can be.

All I know is that it changed my life.

Now, this isn't some get-rich-quick scheme. It's a real business (or side hustle) you can build, customer by customer, into a surprisingly enjoyable and reliable source of income.

Imagine knowing that you have $5,000, $10,000, or even $20,000 in monthly revenue coming in without having to find an entirely new set of customers every month.

That's what makes MRR so powerful.

1. What is MRR?

Think Netflix.

Netflix has built an enormous business around one simple idea: People pay a monthly fee to get something they want, and they keep paying because the company keeps delivering value.

New shows. New movies. New reasons to come back.

Netflix doesn't need to sell you a new subscription every time you want to watch something. You're already a customer.

And that, my friends, is monthly recurring revenue.

Now imagine that instead of being a giant entertainment company, you're a one-person business.

Maybe you have 250 people paying you $20 a month for something useful you deliver every week.

That's $5,000 a month.

Or 500 subscribers paying $30 a month.

That's $15,000 a month. $180,000 a year.

From something you create once and deliver to everyone.

Yep, you’re right - the possibilities are pretty extraordinary!

2. Why do I love MRR so much?

One word: Predictability.

Back in 2001, after the dot-com crash and 9/11, I found myself losing clients left and right. I had been making really good money creating content for Internet startups, and suddenly those businesses were disappearing.

With a newborn at home, it was a really scary moment for my wife and me.

Then a fellow USA TODAY columnist suggested that I syndicate my weekly small business column. Instead of selling my work to one customer, why not sell the same column to lots of customers?

That seemed like a great idea, and anyway, I had nothing to lose.

So I started pitching my small business column to organizations that served small businesses, namely, chambers of commerce.

Bingo!

Before long, I had 90 chambers paying me between $50 and $100 a month. Roughly $7,500 in monthly recurring revenue.

Think about that.

I was already writing the column every week. And all of a sudden, I wasn’t just selling and sending that one column to one client - USA TODAY - I was selling and sending that exact same one column to dozens of organizations.

I wrote it once and sold it 90 times, every month.

And on top of how easy it was, the really beautiful part was that I didn't wake up on the first of every month wondering how I was going to find 90 new customers.

I already had them; I didn't have to start my business all over again every month.

Why not you?

And today, you can build a business around that very same idea.

Instead of charging someone only (and sadly!) once, you can charge them every month for value that continues to evolve and change:

• Maybe you will send them an email with new information daily.

• Maybe you will send it weekly.

• Maybe you will update it with something new once a month.

The new MRR subscription email I am beta testing right now is going out 2x a week (and btw, I am literally calling it “Rainmaker” 😀.)

I had some chambers of commerce that sent me $100 checks every month for almost a decade. 

Just like how you subscribe and pay Netflix every month.

That's the magic.

But here’s the deal: MRR isn't just for Netflix or big corporations.

It can be for someone with a laptop, an area of expertise, and a good idea.

On Monday, I'll show you four different ways people are creating monthly recurring revenue today, including one that I think is particularly exciting.

Talk Monday!

Steve

“Think Big!”