Types of Recurring Revenue

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Recurring revenue can be implemented in many ways.

Here’s a list of the different types of recurring revenue:

Charge based on time -- this form of recurring revenue charges based on a period of time say a month or a year.

It’s simple and can be applied to all customers equally.

Perpetual use -- this type of recurring revenue charges for continual access to a service through which one can buy specific goods or services.

The perpetual model creates a customer base that can be upsold to other products.

Product usage-based -- this form of recurring revenue charges based on the usage of the product.

Storage is an example of paying for the amount of storage used on a recurring basis.

Per seat usage -- this type of recurring revenue charge based on how many users access the platform.

This works for enterprise applications which can have varying numbers of users.

Price tiers -- this type of recurring revenue offers several price levels based on the usage and number of features used.

Freemium models -- this type of recurring revenue uses a free product for onboarding customers and then charges a recurring fee for the use of premium features.

Consider these variations of recurring revenue for your business.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.