Another type of revenue is repeat income, and this is where transactions are, by their very nature, repeatable. The simplest type of repeatable income is gained by providing a quality product or service that your customers, clients, or patients require over and over. For example, if you operate a carpet cleaning service and do an outstanding job, your customers will probably have you come back every year or even a few times per year. That’s repeatable income.
For the many businesses that rely on transactional income, smart business owners are striving to make those transactions repeatable. Another good example of this is home heating oil. I’ve been with the same home heating company for 20 years. Every year, I get a contract that states, “If your burner breaks down we’re going to come out within one day for repairs and offer X number of dollars (or a percentage) off of replacement parts.” That’s a way of locking me in and knowing that they can rely on repeat revenue from me. Of course, they have to offer great service as a starting point.