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Did you know that multi-year contracts are at the pinnacle of recurring revenue business models?

Hi Warrior,

Did you know that multi-year contracts are at the pinnacle of recurring revenue business models?

So, if you’re looking to increase the recurring revenue of your business.

This is something you need to consider seriously.


It’s because multi-year contracts ensure customers continue to subscribe to a business’s product or service over several years.

As a result, these businesses can ensure long-term profitability and increased business valuation.

Our phone service provider is definitely one of the best examples of a business that has maximized the use of multi-year contracts.

They have us commit to three or four-year contracts to get a new phone for free.

And when that contract is up.

They enticed us with yet another new phone that we could get our hands on.

This is why when you look at mobile phone companies, their valuation is exceptionally high.

Because they’ve locked in long-term contracts

They can predict their subsequent multi-year revenue.

And they rarely go bankrupt.

Now, maybe you’re asking yourself:

Is offering multi-year contracts right for your business?

Let me tell you something.

While it is ideal for entering into multi-year contracts with your subscribers, it doesn’t mean you have to do it right at the onset.

You need to identify your audience first.

Find out their needs.

And look for a transaction type that would apply to your current operations.

The bottom line is to take the first step towards having a recurring revenue model for your business.

You can start with any transaction type that can drive recurring revenue to your business, which I’ve discussed in previous emails.

You can offer an essential subscription.

You can start with a sunk-money consumable

Or you can get your subscribers on auto-renewal subscriptions.

But if you know, you can start offering multi-year contracts in your business.

With Gratitude,

- Kirk

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