Startup Funding Espresso – Steps for Transitioning to Recurring Revenue

Steps for Transitioning to Recurring Revenue Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Once you've decided to move to recurring revenue you'll need to set up a plan to switch your business process over to it. Moving to recurring revenue can be done by following these steps: Identify the services that are used repeatedly such as support, replenishment, and updates. Recast these services into a recurring offering. Consider moving your core value proposition to a premium product that requires a subscription. The non-recurring revenue component could be offered as a free product/service to engage the customer. Install payment mechanisms within the product. Notify existing customers of the upcoming change. Set a date for the launch of the subscription model. Start the service with new customers first as they are not yet onboard so there's no switchover cost. Offer incentives to existing customers to move to subscriptions through discounts and other freemium products. Set an end-of-life for the current product to move the remaining customers to subscription. The process for most companies takes six to twelve months to complete. 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. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.