Remember why the valuation of phone companies is extremely high?
We already covered this in my last post.
But to recap, they always lock in long-term contracts with their customers.
You subscribe to a phone plan for three years and get the latest iPhone for free.
And before you know it, the phone company is sending you a surprise reward.
For being a loyal subscriber for 15 years.
So you go, Wow, has it been that long?
That’s the power of multi-year contracts in business.
You get a customer to sign on with you for the next how many years.
And it can very quickly turn into a lifetime engagement with them.
That translates to a lot of recurring revenue in your favor.
Now, to help you implement multi-year contracts in your business.
I’ll share with you nine business models to help you turn one-time buyers into multi-year subscribers for your business.
But to familiarize you with the concept of multi-year contracts.
Let’s focus on one business model for now:
Model #1: The Simplifier
Under this model, you and your client will establish a service contract for ongoing service.
This eliminates the need for people to reach out to you whenever they need a service performed.
Think of an HVAC company putting you on a $20 monthly subscription in exchange for monthly maintenance services.
It simplifies business transactions since you don’t have to reach out to the company whenever you need your systems cleaned or checked out.
Otherwise, go to a different company the next time you need your AC cleaned.
If you could put your clients under a similar ongoing service contract
You can lock them in as your exclusive clients for many years.
In my following two emails, I’ll tell you about other business models that can turn your first-time buyers into multi-year subscribers.
For now, if you want more tips on how to increase your business’s recurring revenue…