A-Z Popular New Business Search »
Business
 
Related Guides
Related Topics
Competitive Advantage

11 Types of Recurring Revenue

 , updated on
Recurring revenue is revenue that is likely to reoccur on a regular basis such as monthly or annually. The following are common examples.
recurring revenue simplicable

Rent

Rental income such as a property rental based on a contract that may span a year or more.

Leasing

Equipment and vehicle leasing.

Advertising

Certain types of advertising contract such as billboard leasing.

Service Contracts

Services that require a contractual obligation such as a consulting contract.

Service Subscriptions

Services that freely allow customers to cancel at any time but nonetheless represent recurring revenue as cancellations are relatively low. For example, a streaming media service that allows customers to cancel at any time may see cancellations of less than 1% a month.

Product Subscriptions

Product subscriptions such as an ecommerce site that offers recurring purchases. For example, a business might order basic office supplies on a recurring basis to simplify reordering.

Content Subscriptions

Content subscriptions such as an online newspaper that requires a membership.

Support Contracts

In some cases, a product is sold on a non-recurring basis with support services that are recurring. For example, software that has both an upfront cost and an annual support fee.

Vendor Lock-in

Customers who become dependent on your products or services such that they find it very difficult to switch. For example, a cloud computing platform may allow customers to stop using the service instantly. However, many customers will offer predictable revenue streams as they become dependent on the technologies offered by the vendor such as platforms and APIs.

Razor & Blades

A product that requires regular consumables such as printers & ink.

Customer Loyalty

Loyal customers who make predictable purchases might be considered recurring revenue. For example, a restaurant that buys its bread from your bread shop each morning.

Notes

The term recurring revenue implies a high certainty that revenue will reoccur with predictable frequency such as daily, weekly, monthly or yearly. As such, regular purchases with an uncertain pattern aren't usually considered recurring.
Overview: Recurring Revenue
Type
Definition
Revenue that is likely to reoccur on a regular basis.
Related Concepts

Business Models

This is the complete list of articles we have written about business models.
Added Value
Aftermarket
Agent
Arbitrage
Auctioneering
Barter
Augmented Product
Bespoke
Bricks And Clicks
Business Markets
Business Products
Business Services
C2B
Club Goods
Coercive Monopoly
Collective Business
Concession
Complement Good
Consumer Business
Consumer Goods
Collectives
Consumer Services
Cottage Industry
Creative Services
Digital Business
C-to-C
Digital Services
Convenience Good
Ebusiness
FMCG
Gig Economy
Middleman Cutting
Global Business
Designer Label
Haute Couture
Digital Goods
Intermediary
Long Tail
Fast Fashion
Market Maker
Financial
Middleman
Niche
One Stop Shop
Productization
Recommerce
Retail
Managed Services
Services
Used Goods
Markets
White Label
Micropayments
Microtransactions
Modular Products
Original Equipment Manufacturer
Product-as-a-Service
Razor And Blades
Store Within A Store
Two Sided Market
Utility Computing
VAR
More ...
If you enjoyed this page, please consider bookmarking Simplicable.
 

Revenue Models

A guide to revenue models.

Markup

A definition of markup with example calculation.

Subscription Model

A definition of subscription model with examples.

Arbitrage

The practice of taking advantage of price differences in two or more markets.

Business Model vs Revenue Model

The difference between a business model and a revenue model.

Revenue Structure

A definition of revenue structure with detailed examples.

Revenue Stream

A definition of revenue stream with examples.

Repeat Business

The definition of repeat business with examples.

Revenue Examples

The definition of revenue with examples.

Business Models

A list of common business models.

Cost Structure

Detailed examples of how to map out the cost structure of a business.

Business Services

Common examples of business services.

Business Services Definition

The definition of business services with examples.

Consumer Services

Common examples of consumer services.

Business-to-Business Definition

The definition of business to business with examples.

Business To Business

Examples of business-to-business markets.

Creative Services

The definition of creative services with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map