The Solopreneur’s Guide to Recurring Revenue: How to Build a Subscription-Based Business

As a solopreneur, your goal is to create a business that generates steady, predictable income. While one-time projects or services can be profitable, they require you to constantly hustle to land new clients. This is where the power of recurring revenue comes into play.

Trust me, I learned this the hard way.

With a subscription-based business model, you can generate a consistent stream of income that doesn’t depend on constantly finding new clients. Whether you’re offering a service, product, or community, a subscription model can bring stability and growth to your business.

In this article, we’ll explore the steps to create a subscription-based business that allows you to build long-term financial freedom.

Step 1: Understand the Types of Recurring Revenue Models

There are several types of subscription models that solopreneurs can adopt. It’s essential to choose the one that aligns with your business and audience.

Here are a few popular models:

• Membership sites: Offer access to exclusive content, tools, or community for a monthly fee.

• Subscription boxes: Curate physical products that are delivered on a regular basis (monthly, quarterly).

• Digital product subscriptions: Offer access to digital products such as courses, templates, or software tools.

• Coaching/Consulting subscriptions: Offer ongoing coaching or consultations for a monthly fee.

I've done each of these. Some I liked, some I decided weren't for me. Think about what your audience needs and what type of subscription model would provide consistent value.

Step 2: Create Consistent and Valuable Content

To keep subscribers engaged and willing to pay each month, your content must be valuable and consistent.

For example:

• If you’re offering a membership site, provide exclusive resources like tutorials, workshops, or downloadable content.

• For coaching subscriptions, provide personalized coaching calls, group discussions, and actionable resources.

• If you’re offering digital products, regularly release new content or updates that enhance the value of the subscription.

The more value your subscribers receive, the less likely they are to cancel, and the easier it will be to attract new customers.

Step 3: Set Your Pricing Strategy

When it comes to subscription pricing, it’s crucial to strike the right balance. You want a price that reflects the value you’re offering while being affordable enough to attract and retain subscribers.

Consider these pricing strategies:

• Tiered pricing: Offer different levels of access at varying price points (e.g., basic, premium, and VIP).

• Freemium model: Offer a basic version for free and charge for premium content or features.

• Introductory pricing: Offer a discounted rate for the first few months to encourage sign-ups.

The key is to find a price point that matches your target market’s budget while ensuring you can sustain your business.

Step 4: Automate and Streamline Your Processes

One of the advantages of a subscription model is that it can be largely automated. Use tools to help with:

• Billing: Use platforms like Stripe or PayPal for automated subscription billing.

• Content delivery: Platforms like Teachable or Kajabi can host and deliver your digital products automatically.

• Email marketing: Set up automated email sequences using ConvertKit or MailerLite to nurture and engage your subscribers.

By automating your processes, you free up your time for more high-impact activities like content creation or marketing.

Step 5: Market Your Subscription Offer

To grow your recurring revenue business, you’ll need to market it consistently. Here’s how:

• Build an email list and nurture relationships with your audience through content and special offers.

• Offer free trials or introductory offers to encourage sign-ups.

• Leverage social media to showcase the value of your subscription and share testimonials.

• Create referral programs to incentivize existing subscribers to refer others.

The more people see the value in your subscription, the more predictable income you’ll have.

Final Thoughts: Build a Sustainable Income Stream

A subscription-based business model is one of the best ways to create recurring revenue and reduce the need to constantly find new clients. By offering consistent value, pricing smartly, and automating your processes, you can build a stable income stream that grows over time.

Ready to dive into the world of recurring revenue? Start by choosing the right model for your business and offering value that keeps your subscribers coming back.

Need help? Book a 1:1 coaching call with me here.