Recurring revenue is a type of revenue that a business or individual generates on an ongoing basis from a regular or predictable source. Recurring revenue is often contrasted with one-time revenue, which comes from a single transaction or event.
Recurring revenue can come from a variety of sources, such as subscription services, maintenance contracts, ongoing consulting or coaching services, or annual licenses. The advantage of recurring revenue is that it provides a steady, predictable source of income for a business or individual, which can help with financial planning and stability.
Recurring revenue can also help to build long-term relationships with customers, as they are more likely to continue using a product or service if they are receiving ongoing value from it. Many businesses aim to build recurring revenue streams to create a more stable and sustainable business model.
Freelancers may try to get recurring revenue because it provides a stable and predictable income stream that can help to reduce the uncertainty and volatility that can come with project-based or one-time freelance work.
By establishing recurring revenue streams, freelancers can create a more consistent and reliable income, which can help with financial planning and stability. This can also help to reduce the stress and anxiety that can come with having to constantly find new clients and projects.
In addition, recurring revenue can help to build long-term relationships with clients, as they are more likely to continue working with a freelancer who provides ongoing value and support. This can lead to increased loyalty and trust, which can help to generate more business and referrals over time.