The Magic of Recurring Revenue For VAsApr 17, 2023
Recurring revenue is a crucial aspect of building a sustainable VA business, as it helps break the feast/famine cycle many freelancers and small business owners find themselves in.
In this blog post, we'll help you incorporate recurring revenue into your VA business and create predictable income month after month and give you the ability to plan your capacity with ease.
The Benefits of Recurring Revenue
Recurring revenue offers several benefits for virtual assistants, including:
- Predictable income, which helps with financial planning and stability
- Predictable capacity, allowing you to manage your workload more efficiently
- Improved client retention, as clients are more likely to stay with VAs who offer ongoing services
- Increased business value, as businesses with recurring revenue are often more attractive to potential buyers
Top 3 Ways to Bring Recurring Revenue into Your VA Business
To incorporate recurring revenue into your VA business, consider the following strategies:
a. Service Plans: Offer service plans (or sometimes called retainer packages) to clients, where they pay a monthly fee for a set number of hours for specific services. This guarantees ongoing work and revenue, while also providing clients with the assurance that you'll be available to support them consistently.
b. Monthly Packages: Create subscription-based services, where clients pay a recurring fee to access certain services, such as social media management, content creation, podcast management or email marketing support. You'll know how much you'll be billing each month giving you certainty for your future earnings.
c. Affiliate Partnerships: Partner with organisations where you can earn a commission for referring and using their tools and apps for your clients. This can generate passive income, as you'll earn a percentage of the sales made through your referrals on an ongoing basis. Many of the tools you use in your VA business have partner programmes so be sure to check them out. A few examples are Rocketspark, Xero, Harvest, and Better Proposals.
Ensuring Predictability for VAs Offering Project Work
If your VA business focuses on project-based work, you can still create predictability by:
- Developing long-term relationships with clients and encouraging them to engage in multiple projects
- Offering discounts or incentives for clients who commit to a series of projects
- Diversifying your client base to reduce reliance on a single client or project
By implementing strategies such as service plans, subscription services, and affiliate partnerships, you can build a sustainable VA business that thrives in the long term.
Give yourself the stability and predictability of recurring revenue in your business and watch your confidence grow with your business.
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