We love continuity income.
It is, in short an incredible way to build, scale and sustain a business—any business. So, here’s a quick tutorial in case you aren’t familiar.
Continuity income, as the name suggests, is continuous income paid weekly, monthly, yearly or on some other fixed schedule. It’s frequent, it’s recurring and it’s automatic—people don’t have to mail back a check or call with their credit card or anything like that.
The charges are pre-authorized and keep happening, which benefits all sides. The customer doesn’t ever experience a lag in service and the business continues to collect money doing anything. Really, what could be better?
Building Continuity Income in ANY Business
Before you dismiss the notion of continuity income because, at first glance, your business model doesn’t support it, we are asking you to read on and really think about what we are saying. We truly believe almost any company can create a continuous income stream like the ones we are describing.
You might need to get a little creative and think outside the box a bit, but it’s doable and likely very doable. Once you’ve set up these streams, you have consistent, predictable, and steady income going forward.
You can always look ahead at the next 30, 60 and 90days and say, “this is how much I’ll have in the bank…” It’s as incredible as it sounds.
Another reason continuity income is so powerful?
You’re charging everything upfront, but breaking down the payments into more management chunks.
Think about it.
If you’re selling a product that’s $1, 200 and you offer customers a 12-month agreement at $100 per month, more often than not they’ll opt for the latter. It’s a much lower price barrier to overcome.
While, of course, you’d rather get the $1, 200 on day one, offering this continuity payment plan will likely drive up your conversions and, in the end, generate more revenue for your business.
While it might not sound like a lot – $70 here, $20 there – continuity income can really start to add up as you scale your product and service offerings.
You could easily have someone paying $10, $50, $100 or even more every 1 single month for years. Digest that for a minute imagine someone giving you $50 each month for the next decade.
That $50 may seem inconsequential, but over time, you’ll have generated $6,000 from a single customer. That’s if they never opt in for any incremental offers, which over 10 years, I suspect they would at least a few times.
So let’s talk about bundling. In my experience, bundling a continuity offer with another purchase is the most effective way to drive conversions.
For example, you could sell a recording of a three-day live event for a few hundred dollars. Then, on the order form, we will include force continuity.
In other words, say “when you buy this content, you’ll be automatically enrolled in my monthly audioprogram,” or whatever continuity program you have- that aligns. Usually, we include a free trial— a week or two, let’s say, or maybe even a bit longer depending on the product.
The Direct Approach to Continuity Income
That’s one option– but that’s not the only option. You can also sell continuity direct.
In other words, you can lead with a continuity offer. So, in these cases, you’d say, “I want you to buy my monthly audio package.” It’s bold, it’s direct and it’s clear-cut and in our experience many marketers have lots of success selling continuity this way.
That said, we know that this approach is not appealing to the majority of consumers. Most people prefer the free trial piece.
To many, it eliminates the risk and makes them feel better about saying YES.
That’s why we tend to stick with a bundle approach or a free trial – sell the product or offer instead of selling the subscription directly.
Getting OUT of the Cycle One
One final note you DO need an out in continuity marketing.
If you’re producing good content, services and products, you probably won’t have to exercise it much, so don’t panic. We rarely cancel a program or service. However, sometimes you are not getting to the content that you subscribed to in a reasonable amount of time or too much of the same content from different channels.
Once you cancel a program or service. A good marketer will sent an email something like this:
I have just noticed you cancelled your membership!
If this was a mistake, you can rejoin here, but let me know by reply to this email so I can make sure you don’t miss anything.
If the is any way we can get you back into the program, just let me know how and I would be more than happy to help you.
Do It Team
The marketer typically wants to know why we cancelled and how to get us back. It’s smart to ask. Usually, if you can get a former subscriber back into the fold then keep engaged for a few months, you can often double that’s person’s lifetime value.
That’s hugely important and something that needs to be top-of-mind as you’re building your continuity models.
So, that is the scoop.
Take a good, hard look at your business and figure out where you can build in a continuity model.
When you do, we want you to really focus on the pricing model to ensure you’re profitable from the get-go. As you start to build out your model more and more, we suspect you’ll find additional spots to integrate continuity.
When you do that, we guarantee you’ll see the power of continuous income streams.
Nicky and Dave Cane