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Yaro is a serial entrepreneur, blogger, podcaster, angel investor and digital nomad.<\/em><\/p>\n<\/p><\/div>\n A true \u2018recurring income\u2019 product or service doesn\u2019t exist.<\/p>\n I say this even as right now I have several customers who have been paying a subscription to my company for over six years.<\/p>\n A long time ago I got real excited about having a\u00a0subscription product<\/strong>\u00a0or even a\u00a0membership site<\/strong>.<\/p>\n Then as I began to sell these products and later services on subscription, I came to realize that it\u2019s a bit of a false sense of security.<\/p>\n No recurring revenue source repeats forever.<\/strong><\/p>\n What happens is you have a churn rate and a life time value (LTV).<\/p>\n You learn how long a customer keeps paying and what the lifetime value of a customer is.<\/p>\n So instead of seeing it as I make $97\/month from my customers, you see it as customers on average last for 9 months and are worth $873.<\/p>\n Your mindset then moves to reducing churn\/increasing stick rate, and adding upgrades and\/or more products to sell to the same customers to increase the LTV.<\/p>\n I may have been naive all those years ago because I thought if I just got 1,000 customers paying me $100\/m, my membership site would be a $100,000\/month income stream.<\/p>\n What really happens is that you have a revolving door of people coming in and out.<\/p>\n There will always be a need for new customers because there will always be churn.<\/p>\n Recurring income is really just a way to increase LTV. It\u2019s not a permanent cash flow source.<\/p>\n This led me to an insight that I\u2019ve taken with me ever since:<\/p>\n Marketing never ends.<\/strong><\/p>\n You will always need new customers if you want to grow.<\/p>\n That sentence might seem obvious, but I think many entrepreneurs underestimate the need to build a true\u00a0marketing department<\/em>\u00a0in their company.<\/p>\n The only way to feed something that has a never ending hunger is to build a team of chefs who keep cooking interesting meals using the latest trends and technology.<\/p>\n If you don\u2019t build your marketing department you will experience extreme ups and downs.<\/p>\n Your growth will be unpredictable.<\/p>\n Some weeks, no growth at all.<\/p>\n Nothing will happen without you.<\/p>\n You will curse every lost customer.<\/p>\n To break this cycle you need people who implement a process to keep leads coming in.<\/p>\n They do the experiments. They do the conversion rate optimizations. They do the content creation and distribution.<\/p>\n If this sounds relevant to you, your next step is to plan a build-out for your marketing department.<\/p>\n This includes the processes and the people to run them.<\/p>\n If you need help let me know.<\/p>\n Keep growing!<\/p>\n Yaro \u200b You can catch this content early on my\u00a0LinkedIn<\/a>,\u00a0Facebook<\/a>,\u00a0X.com<\/a>\u00a0and\u00a0Instagram<\/a>\u00a0accounts.<\/p>\n This subject is both the single most frustrating and satisfying part of my working life as an entrepreneur.<\/p>\n Growth is what we all strive for, yet each day is a small step often filled with challenges as we attempt to figure out what marketing channels work.<\/p>\n Years later, when you have a profitable business, the pay off is life changing.<\/p>\n It\u2019s a daily grind to get there, and often the lack of success kills motivation.<\/p>\n This is why I have decided to turn the direction of my newsletter towards the topic of growth.<\/p>\n I even purchased a new domain name as I want a fresh brand.<\/p>\n I\u2019ll share more soon as I roll out the rebrand. I\u2019m excited!<\/p>\n \n\t\t\t<\/div>\n
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\u200bP.S.<\/strong>\u00a0I\u2019ve been writing a lot recently on marketing and growth.<\/p>\n