Startup Funding Espresso – Recurring Revenue Business Examples

Recurring Revenue Business Examples

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In the venture world, the recurring revenue business model is the preferred method.

The recurring revenue business model provides consistent demand.

Here are some example businesses using recurring revenue:

Software as a service -- this business model provides access to a software platform in exchange for a subscription fee.

It’s one of the most common businesses as software lends itself to repeat usage over time.

In addition to providing a service, it can also capture data for additional monetization.

Services -- businesses that provide an ongoing service such as lawn care, can also be put into a subscription format.

Since the lawn continues to grow and needs continual care, it’s a repeat revenue stream.

Membership -- businesses that provide an ongoing membership are ideal for recurring revenue.

Examples include businesses with loyalty programs in which one must be a member to gain access to the products and services.

Property management -- businesses that provide ongoing management and maintenance of a service fit the recurring revenue model.

In this example, the rent must be collected each month and problems resolved with the property.

Predictable cash flow and automated payments give the business a competitive advantage over non-recurring revenue businesses.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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