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The Holy Grail Of Online Income: Recurring Revenue

26 April 2010 2 Comments

Recurring revenue is the best form of online income.  Landing an account or a customer that results in continuous, regular payments indefinitely.  Build a portfolio of recurring revenues and you have a nice little income stream that flows nonstop.

When it comes to blogging, this will typically take the form of a monthly advertising deal where an advertiser wishes to have an ad on your site and pays by the month.  It can take other forms, but this is the most common.

How Bloggers Can Increase Recurring-Revenue Deals

First, you need a site that people want to advertise on.  The better the site, the more leverage you have.  But, this you probably already know.  Second, when negotiating rates and terms, you might consider avoiding locking in a length of term and accepting payment up front.  The reasons for declining upfront payment (sounds crazy) is that you might wish to increase your monthly rates in the future or you might want to get rid of the ad before the term ends.  I’ve had both happen to me.

Encourage your advertiser to pay a higher rate on a monthly basis with the ability to stop the advertisement at any time.

How To Setup Recurring Payments With PayPal

PayPal offers a fantastic feature that allows you to setup a recurring payment.  If you have a merchant account (free & easy to setup), you can setup a Subscription.  Go to Merchant Services, then Subscriptions.  After putting in the details of the recurring payment, you will have two options to present to your advertiser: a button or an email.  Choose the email option and forward the URL linking to the payment page to your advertiser.  It’s fast and easy.

If your advertiser doesn’t pay, you will get notified and you can remove your ad (or whatever product you’re selling).  Furthermore, you’ll be notified each time you receive a payment.

Other Forms of Recurring Revenue

Other forms that are common include membership sites where users pay a membership fee each month, or perhaps a newsletter that requires a monthly subscription payment.  To be successful in either of these options, you already need an established record or reputation as your customers and readers are truly paying for content.  Not many can accomplish this.

Do you have any recurring online revenue flowing into your bank account each month?  How much?  From what sources?


  • KingAaron said:

    Do you think online advertising will continue to grow in years to come? What has helped you most in gaining online revenue?

  • 20smoney said:

    I think the economy will struggle which will impact advertising dollars, but at the same time, I think online will gain market share of advertising dollars versus traditional media. With online advertising, advertisers can be more specific in targeting, can measure the results better, and it's for the most part less expensive. As such, online advertising will grow I think, while traditional advertising is going to continue to decline. Just my opinion though.

    In terms of gaining online revenue, it's all about growing your website. And being in an industry that has lots of ad dollars helps of course. Growing your website requires consistency, hard work, and a little originality.

  • kenyantykoon said:

    a recurring income from online husting would be so good. i still haven't reached that level but God willing i will and when i do, i will tell you exactly how i did it(provided i remember)