Creating a recurring revenue funnel product

Today, I want to show you that I’ve built three products for you to sell to customers as a recurring revenue-based product.

It’s designed specifically for funnel businesses but also you could comfortably use it if you’re in other areas as well.

What I want to do is go through and show you just how quick and easy it is to create recurring revenue products.

Obviously, I’ve got previous videos on how recurring revenue adds a very different dynamic to your top line. How even project-based income makes it impossible to scale.

The key with recurring revenue is there is a huge difference between scalable recurring revenue and just plain recurring revenue.

If you’re still doing the work, if you’re still going out there and doing actually all the stuff, you’re still only giving yourself eight hours a day maybe, even if the business system was perfect, eight hours a day to actually deliver the work to your customers.

Whereas things like consultation and stuff, if it’s a regular consultation gig might be recurring revenue, it’s almost impossible to scale it because once you get past a certain point you’re never going to be able to go further than that.

I’ve got a Google doc here that I’ll put the link below, too, and you can get access to that. It’s essentially three recurring revenue products that we’ve created.

I’m also going to show you how I would build them and where I would go to get people to deliver the work for us as opposed to us having to do it.

I think these are perfectly affordable. We’ve got $197 level. We’ve got a $497 level and a $2,000 or $1,500 level. All of which provide outstanding value to the customer.

That’s all we’re really trying to do is just really build massive levels of value for our customers, make sure that they can get everything they can from us.

We’re helping them in every way we can and we’re doing everything we can to help.

This document here, as I said, I’ll give you access to this. It’s three levels of recurring revenue products.

We’ve got three options, basically option one, option two and option three.

Option 1

The first one here is a really basic and simple care plan product. This care plan, essentially, your funnels’ obviously built on the platform, probably, WordPress.

If you use Beaver funnels, which is our funnel-building software. You’re obviously building on WordPress. Maybe you’ve got your own theme and a few plugins and it’s on a hosting platform.

We actually talk about this in my course on building Marketing funnels with Beaver Builder and Active Campaign. But this is a really simple recurring revenue-based product.

Plugins have to be updated. WordPress has framework updates. You’ve got to have decent hosting.

Things have got to load quickly. Because if you’re loading in two or three plugins at a time or 20 in some funnel cases.

As well as making sure that people can access it wherever they are in the world. Making sure that if they come through from Facebook it’s gonna load nice and quickly for them because otherwise, they’re going to drop off.

There’s a level of security as well. They’re finding vulnerabilities all the time. It’s not to put fear into your customers, but to understand that this is the world we live in.

The easiest way to understand this product is to say to your customers what would it cost you per day for your website to go down. It’s as simple as that.

Now, this is not an insurance product. It doesn’t mean that we payout or anything. I shouldn’t at all sell recurring revenue or maintenance and care products as insurance because that’s Pandora’s box that you don’t want to open there.

Whereas, if you position it as a product that’s going to keep them healthy, maintain their website, make sure that it’s updated all the time. Here’s the biggest thing we can offer unlimited support and content tasks.

So, when a customer emails and says, “Hey, I was just wondering, we could change this logo a little bit.”

I was wondering if we could upload this content or is wondering if we could update this plugin or change this page or whatever it is.

We can offer unlimited support and content tasks with this package and it only costs us $79 per month.

Now we use a company called GoWP.

Full disclosure, Brad, he’s a friend of mine. We were in a couple of similar networking groups, but we do use GoWP .

They have an agency and web professional product here that allows you to build, recurring revenue, maintenance and care plan, daily backups, ongoing updates, dedicated team, white-glove support, monitoring, support tasks up to 30 minutes.

Each arrangement can be made for larger tasks of up to two hours, depending on how it is. $79 means that if you were to sell it at $197 per month to your customer, it would only cost you 79 bucks to deliver this to the customer.

The reason we love this so much is because it completely removes the need for us to do the support and updates and backups and things like this.

You can build out your own packages. I’ll show you how we can build out other packages. But this is a really basic one and frankly, all of your funnel projects should come with this as mandatory.

It should be mandatory to serve this and we won’t take on any funnel projects at all, unless they build out a care plan because otherwise it just becomes too expensive for us to be able to run this.

If you understand how much it costs your customer for their website to be down per day, that’s much easier to put it in perspective for them to say, “197 bucks a month. Okay. Not a problem.”

Even if it’s only a hundred dollars a day in sales, so if your website was down for two days, that’d be $200 that you’d miss out on and potentially more cause obviously one customer buys once you want to bring him back.

For the sake of 197 bucks or 200 bucks a month, that you just want to keep it going. Updated, unlimited support tasks. If anything goes wrong, we can get it going again.

Let’s say one of your guys plays around with a design and it breaks, we’ve got the backups available. We’ll also provide your hosting for you.

To me, this is a no-brainer. This is something that you should be putting all your customers on straight away.

Option 2

Option two, here we go. $497 per month.

First of all, they get everything from option one because that’s only costing us 79 bucks. We can also provide SEO on their current site.

On their website, as it is, we can optimize that and just go through a page a day, hire someone to go through a page a day and we can use something like people per hour speedlancer, just to make sure that their things are optimized.

On the most basic level, make sure that their tags on the webpage make sure that their blog posts have got the correct URLs and no spelling errors because we’ve seen that quite a lot.

Make sure that their categories, make sure that images have the correct old tags.

Just submitting the XML or the site map to Google or the most basic level things, that’s what we can be taken care of.

We can also take care of social content across three platforms. They would just write up all their tweets and their Facebook posts, and some businesses want to do that.

They want to have complete control, but the scheduling side, uploading it themselves to all the different bit different pieces. Even if they use something like hoot suite can still be a bit of a ball lake, frankly.

We’re going to take care of that for them. We’re going to upload and schedule across three platforms. You can even provide a bit of insight there against what time would be really good. This time Facebook would be really good and we’ll post it to the group or whatever.

This is something we’ve just started adding as a Facebook remarketing campaign management.

We’ll create maybe one or two Facebook remarketing campaigns. We’ll take care of the pixel. We’ll install the pixel on their site.

First of all, we’ll monitor how big that audience is and we’ll pick two or three platforms. Now, this doesn’t include the traffic cost. This is just setting up that remarketing campaign and leaving it for a couple of audiences.

Maybe you want to remarket people to one particular checkout page, and you want to remarket all website traffic to two or three other landing pages or squeeze pages.

This to me is a really easy option for you to be able to start building into your customers. It doesn’t include the traffic costs and make sure that you work out traffic costs with the customer. You could even get against somebody else to take care of that for you.

We typically use Speedlancer for a lot of our jobs in this respect. The reason we like using speedlancer because I can build out a process, which is a checklist , essentially, of things that we need to be done.

We will have an SEO version. It’s a basic SEO, SEO research, SEO, keyword research. A lot of these tasks and stuff that you can split out, of course as well.

Also, I am a huge fan of The reason why again, is because if I create the process and create the list and we’ll use something like Loom to record the process that I want them to go to on one site. I’ll just say, I need you to do this once a week a hundred bucks a week or whatever it is.

If you think that we have an option here of spending 265 a month, and that will still leave us with 232 a month. We still make 232 bucks of profit there. That 265 includes the 79 per month for GoWP for the previous option.

We can split that remaining 180 bucks, across someone to do social media, content management, and SEO or a remarketing campaign.

Again, just to set, we would perhaps set it up, or do we just say, look for it for a hundred bucks, we need you to add the pixel and build the audiences. Then once a month, just check-in, see what the traffic costs are doing, and that’s not going to be a huge amount of money.

It’s only going to take someone an hour or two, but they would happily receive 60 bucks a month just to have that income coming in. That’s a nice, really nice, simple option here.

Option 3

Now, we’re getting into a slightly bigger one. It’s 1,997. They get everything from option one to get everything from option two, but we’re also going to give them one new blog post with up to a thousand words per week.

They’re going to get four to five posts a month. This is where we absolutely would use speedlancer.

If you are creating regular content for your customers, here we go, a thousand-word blog post. I think there’s even an option to get it. The subscription is 119. That’s 500 bucks.

Let’s say it’s 500 bucks a month, right? That still leaves us with plenty of revenue to have someone create social content across three channels.

We’ve often found with speedlancer that they will create some social content to go with it. Some Twitter content and Facebook content so we can have that go out.

We might then want to outsource a little bit more, like have a couple of Instagram posts created, have some Facebook featured images, have some Twitter featured images.

Again, talking to people like Speedlancer and PeoplePerHour, if you can record the process once yourself and then ask them, “This is what we’re looking for. We’ve got a budget of this much per month. Are you able to do that?”

Then, also create a cold traffic management process. Just have Facebook cold traffic managed just managed.

That doesn’t include the cost of traffic. They’ve already got the pixel. We might create two or three cold traffic campaigns to a couple of those blog posts.

Not every single month, but just making sure we’re keeping an eye on costs, making sure we’re keeping an eye on the conversion rates and the cost per acquisition or the cost per sale.

You could absolutely pay someone 1200 bucks a month to take care of all of this. Included inside that minus the 79 and minus the 265.

We still have around a grand to spend on someone to take care of one new blog post a week. We know that’s going to cost us around 500 a month.

But even if you said to a content writer, I want to give you $750 a month to write four posts a month, one post a week, there’s plenty of money there and it gives you a really healthy profit margin. There’s plenty there for you to take away.

Of course, you’re going to be managing people through this process. So over time, those margins might become thinner because you might actually outsource the management process which is what we’ve done.

I have personally taken an even smaller cut of this now because we have the majority of our money and you’re going to outsource. Some of the money goes into our manager who manages our multiple outsource.

This is how we build out this business here. This is how I would build out multiple recurring revenue products.

Mike Killen

Mike is the world's #1 sales coach for marketing funnel builders. He helps funnel builders sell marketing funnels to their customers. He is the author of From Single To Scale; How single-person, small and micro-businesses can scale their business to profit. You can find him on Twitter @mike_killen.