Are you looking for a lucrative business with consistent monthly income in 2024? Look no further! In this guide, I reveal the best recurring income business to start, allowing you to earn over $9,000 or more every month. Discover the most profitable strategies to kickstart your journey towards financial freedom and stability. Don't miss out on this opportunity to secure your financial future!
Why Recurring Income is Key
Running a business can be challenging, especially when dealing with unpaid invoices and chasing customers for payments. This is why residual income, which is typically never late and comes without excuses, is highly desirable. Residual income is recurring earnings generated from past efforts. Imagine making a steady income from a business model that’s 100% about recurring revenue. In this guide, I’ll share the best one-person operated residual income business model to start in 2024 that pays US$9,000+ a month in recurring revenue. This means money is coming in every month without you ever sending an invoice or making collections calls.
Welcome to the Recurring Income Business Model
This business model has been around since the 1600s, introduced by newspaper and magazine publishers. It’s a proven model used by big brands like Netflix, Amazon, and Apple. Here are some examples:
- Netflix: $7.99 per month subscription.
- Amazon Prime: $139 per year or $14.99 per month.
- Apple Music: $6.49 per month.
- Patreon: Supporting a YouTuber for $20 per month.
The common factor among these examples is the subscription model. Let’s explore different types of subscription models and how you can launch this model to make recurring or residual revenue. The subscription economy is projected to reach $1.5 trillion by 2025, with companies using subscription models retaining 85% of their customers year-over-year. You only need a small slice of that pie to make $9,000 a month.
Subscription Model 1: Jason Derulo’s Rocket Carwash
Jason Derulo, the pop sensation, expanded his business ventures by investing in Rocket Carwash. Who would have thought a carwash could operate on a subscription model? Here’s how it works:
- Membership Plans:
- Express Wash: $19.99/month
- Express Full Service: $44.99/month
- Rocket Full Service: $54.99/month
- Rocket Plus Interior: $69.99/month
Practical Calculation Example:
- Basic Calculation:
- If Rocket Carwash has 1,000 customers subscribing to the Express Wash plan at $19.99/month:
- Monthly Revenue: 1,000 x $19.99 = $19,990
- Annual Revenue: $19,990 x 12 months = $239,880
Setting up a full-function carwash is a huge investment, so here’s a more accessible approach:
1. Equipment:
- Pressure Washer: Amazon Pressure Washer for $149. Consider a commercial version for $264.
- Toyota Voxy for US$15,500. Use a commercial vehicle loan with a $100,000 deposit and monthly payments of $229 for 9 years.
- Replace van seats with a 400-gallon water tank like this one for $135.
2. Operations:
- Hire a driver and an assistant.
- Target residential and gated communities to minimize travel.
- Offer a subscription service at $60 per month for a full-service wash, including 2 full services and 2 exterior washes per month.
Revenue and Expenses:
- Assuming 400 customers:
- Revenue: 400 x $60 = $24,000 per month
- Expenses:
- Loan Payment: $460
- Employee Salaries: $4,100
- Petrol and Supplies: $500
- Miscellaneous: $500
- Total Expenses: $5,560
- Profit: $18,440 per month
Even if you achieve half of that, it’s $9,000 a month in recurring revenue. Reinvest profits to expand your fleet.
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Subscription Model 2: Rockstar Club Membership on Patreon
Identify your expertise or passion that others might find valuable. Create a subscription-based online platform offering content, coaching, and community. For example, I operate this model using Patreon with over 750 paid members paying from $5 to $100 a month. If 750 members pay $5/month, that’s $3,750. With an average subscription of $39/month, it’s $29,250 monthly revenue.
Health and Fitness Example:
- Create a Patreon Profile Offering:
- Recipes, cooking tutorials, accountability sessions, workout guides, monthly inspiration meetings, and monthly weigh-ins.
- Charge $25 for basic membership and $50 for a higher tier.
- Target 400 members initially for $10,000 at an average rate of $25 per month.
- Drive traffic to your subscription platform via YouTube or a blog.
Subscription Model 3: Sarah's Subscription Box Success Story – Framed by Sarah
Sarah Williams, founder of Framed by Sarah, launched her subscription box business in 2017, generating around $125,000 per month and surpassing $1.5 million in annual revenue.
- Subscription Fees:
- Monthly T-Shirt Club: $25/month
- Monogram Box: $39.95/month
- Combo Box: $55/month
How to Start Your Subscription Business and Earn $9,000 a Month
1. Find the Right Niche:
- Write down your expertise, hobbies, and passions.
- Identify pain points or needs within your target audience.
2. Choose Your Platform:
- Substack for newsletters.
- YouTube and Patreon for video content.
- Stripe for custom subscriptions.
3. Build Your Content or Product Library:
- Create a mix of free and premium content.
- Offer exclusive value in the subscription tier.
4. Price Your Plans:
- Basic Plan: Affordable and attractive.
- Premium Plan: Extra value for loyal subscribers.
5. Market and Grow:
- Use social media, blogs, and SEO to drive traffic.
- Leverage existing customer testimonials to attract new ones.
6. Deliver Consistent Value:
- Keep subscribers engaged with regular updates.
- Offer exclusive content to keep them coming back.
Subscription Business Example: Curated Self-Care Box
- Target Audience: People seeking relaxation and wellness products.
Earnings Breakdown:
- Offer Subscription Tiers:
- Basic Plan: $20/month for 4-5 self-care items.
- Premium Plan: $50/month for 8-10 premium self-care items.
- Revenue:
- 200 Basic Subscribers: 200 x $20 = $4,000/month
- 100 Premium Subscribers: 100 x $50 = $5,000/month
- Total: $9,000/month
- Upsell Opportunities:
- Cross-sell premium products to existing subscribers for an additional $500/month.
Types of Subscription-Based Businesses You Can Start:
1. Fitness and Wellness: Personal training, meal plans, and online yoga classes.
2. Educational Courses: Languages, coding, and career development.
3. Newsletters and Blogs: Financial advice, motivation, and niche insights.
4. Subscription Boxes: Curated food, clothing, and gadgets.
5. Digital Products: E-books, templates, and graphics.
6. Podcast Memberships: Exclusive interviews and content.
7. Stock Photography: Subscription access to unique images.
8. Software as a Service (SaaS): Automate marketing, sales, and customer support.
9. Hobby Clubs: Gaming, crafting, and DIY kits.
10. Community Memberships: Exclusive forums, events, and resources.
By following these steps, you can start a profitable recurring income business in 2024 and earn a consistent income every month.
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