As far as internet marketing goes, a continuity based business model is one of the better options to engage in –
and it’s the most logical way to create a substantial, predictable income.
Continuity simply means products or services requiring regular payments – so you get paid month after month, or along other regular time frames for what you offer.
You can make money by being an affiliate, or by offering your own.
It goes without saying that any business that generates recurring revenue is worth more. If you talk to anyone involved or experienced on business brokering, they will tell you that any type of business that is likely to attract repeat customers, sells for more – even if it is more work to attract your customers or clients in the first place.
What makes the continuity business model so lucrative?
Firstly, your income becomes predictable. Fair enough, you will have some people canceling. The number will depend on what you offer, who you offer it to, and what you charge. However, even with the attrition rate factored into your projections, you will still be able to guess fairly accurately where your income is going.
This makes it a lot easier to manage your personal finances, and plan for things like mortgages, car payments, etc. it also makes it easier to convince the bank of the stability of your income when you apply for credit (they can see the stability and growth in your income on your statements).
Secondly, being able to make more money per customer- in total – means you are working with high ticket sales. That means you are getting paid more for each new customer you attract than you would have been paid otherwise.
Normally you may have been selling products paying out an average commission of $70. If you sell a product to someone on your list, he or she needs to be nurtured and motivated to make another purchase. However, if you sell a membership or service that uses the continuity business model, the picture changes drastically.
You can sell something that only pays out $25 per month – and if the average customer keeps using the service or membership for just 4 months, you will already make $100 instead of $70. On the other end of the spectrum, there are affiliate programs for things like autoresponder services – like Aweber, Getresponse and Convertkit – who pays you 30% of what the client spends.
While that may not sound like much to begin with, keep the following in mind: (a) As that person’s business grows, his or her package size with the business grows, and so does your commission. (b) The typical autoresponder service client stays with the company for YEARS. SO even if you only end up making an average of $10 per month, and you get it for just two years, you still make $240 for each client you bring in.
Fair enough, it’s not the same as the immediate $70 – but it’s also money that you worked for only once, and got paid over and over again.
So – which types of businesses use the continuity internet business model?
a. Autoresponder or email marketing services like Aweber, Getresponse and Convertkit. Most of your clients will generate you money for a long time. Most people don’t like moving their lists to a new autoresponder company – simply because it is such a valuable asset, and you cannot afford anything to go wrong. Not to mention the fact that it comes with a load of setup work to be done, including list settings, new optin forms, new website integrations, re-loading all the back-end sequence emails, etc.
b. Paid newsletters aren’t really common in the internet marketing community – but they are still found in more specialized niches (real estate, investments, health, etc).
c. Online services and software – besides the autoresponder services, there are many other options for making money from online services. These include things like forex signals, social media services, and search engine tools, among others. You can even become a hosting re-seller, and generate (or supplement) your monthly income from that.
d. Physical services – if you can offer any physical or professional service online that warrant long term engagement, you can generate in income through continuity. Think of attorneys getting paid monthly retainers, and life coaches and accountability getting paid from regular consolation fees. Some of those offer affiliate programs with recurring commissions.
e. Membership sites – there are many content-based membership sites, across a multitude of niches, that you can offer – or create your own. The only thing to keep in mind is that, if you are going to sell the promise of new content every month, you will have to add new content every month. Some membership sites only ask for quarterly or annual payments – so they don’t need to update it every month.
f. Fixed term memberships – or micro-continuity offers: These mostly revolve around courses and coaching programs – and since the cost is usually a lot higher than for standalone products, your potential income can be quite a lot more. That is especially true in the case of coaching programs, where people often pay several thousand dollars for a few months’ worth of coaching.
As far as internet business models go, continuity is probably the best option – bar none. Depending on the niche you operate in, and your audience you market to, you can set yourself up to earn substantial amounts of money – whether from commissions or your own venture.