Module 5: Re-Occurring Revenue

Tutorial You will watch videos to learn the following: -Why Recurring Revenue? -6 Transaction Types -9 models -Recurring Revenue FAQs -Subscription Models -Calculating LTV: CAC

Sales on autopilot

The Automatic Customer Builder

In this section of the module, we'll focus on increasing both the number and quality of recurring revenue streams flowing into your business. You will complete The Automatic Customer Builder tool, which identifies opportunities for annuity revenue in your business. Recurring revenue increases the value of your business, smooths out demand so as to allow you to plan your business more efficiently, and improves both cash flow and profitability. The output of this section will be to help you through a series of questions to identify your: RECURRING REVENUE ACTIONS ITEMS RECURRING REVENUE OBSTACLES

LTV: CAC Calculator This section of the module includes a tool that will help you understand the health of your subscription business. We look at a number of operating metrics in order to calculate the relationship between the Life Time Value (LTV) of a subscriber and your Customer Acquisition Costs (CAC). For a subscription business to be considered healthy, it must have an LTV:CAC of at least 3:1.

While this tool is focused on monthly increments, you can use any timeline you like (quarterly, annual, etc.) provided you replace ‘monthly’ with the time period of your choice for all the questions.

Click here to start your Business Value Building journey by getting your value builder score today.