Recurring Revenue Business Ideas That Are Unexpected


As an enterprising businessperson, you want to have a business with plenty of growth potential. You want to start a business that stands out from the competitors, but also has as much security as possible. With these factors in mind, a business with a recurring revenue model may be the best choice for you. Let’s take a closer look at this model and what recurring revenue business ideas might work.

Defining a Business Model

A recurring revenue business is one that uses an income model with regular payments over time. Long-term rentals, subscriptions, and contracts with regularly scheduled payments are all examples of recurring revenue. Some recurring business ideas use this kind of income model regularly, such as house and apartment rentals, magazine subscriptions, and clubs with memberships.

The Benefits of Regular Revenue

Recurring revenue businesses have become increasingly popular in recent years, and for good reason. These types of business models offer a host of benefits for both you and your customers.

One of the primary benefits of recurring revenue is stability. By generating revenue on a regular basis, you’re able to forecast your income and plan more accurately for the future. This stability allows you to make smarter business decisions and invest in growth opportunities with confidence.

Recurring revenue also promotes customer loyalty. When customers sign up for a subscription-based service, they’re more likely to remain loyal to that company over time, as long as they continue to receive value from the service. This loyalty leads to lower churn rates and a more predictable revenue stream.

Finally, recurring revenue models often provide a more predictable customer acquisition cost (CAC) and customer lifetime value (CLTV). Since customers are signing up for a service on a recurring basis, companies can more accurately calculate how much they will spend to acquire each new customer and how much revenue each customer will generate over their lifetime.

Overall, recurring revenue offers you stability, customer loyalty, and predictability that can be incredibly valuable. By focusing on building long-term relationships with customers and generating recurring revenue streams, you can set yourself up for sustainable growth and success in the long run.

Standing Out in Your Industry

There are some recurring revenue industries, like the aforementioned real estate rentals and publication memberships, where the recurring revenue model is widespread. However, those aren’t the only industries in which this revenue model is suitable. Recurring revenue businesses are appearing in additional industries beyond the traditional ones. For example, the lawncare industry has long been one that’s reliant on the seasons, which affects lawncare businesses’ income. But a few lawncare companies have started using memberships and/or long-term contracts to ensure their franchisees have steady revenue instead of having to deal with an off-season. The model isn’t widespread for the industry, but adopting this approach can help you stand out from other lawncare businesses in your area and generate revenue year-round.

Additional business ideas that recurring revenue might suit include the following:

  • Membership/subscription-based food delivery services.
  • Membership-based professional supply businesses.
  • Long-term contract vehicle rentals.
  • Long-term contract exterior and/or interior residential cleaning services.

Secure Recurring Revenue with GrassRoots Turf

We’re pleased to offer you an opportunity to make a regular, steady revenue stream with GrassRoots Turf. We’re a lawncare franchise with a unique recurring revenue model that will help ensure you have a steady, reliable source of funding for your franchise, allowing you to grow your business as you help your clients grow and maintain their lawns, trees, and shrubs through all seasons. Request more information to learn about your recurring revenue franchising opportunity with GrassRoots Turf.


Posted in Starting a Franchise.

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