Let me tell you a story.
Two business owners walk into a buyer’s office, both looking to sell.
Business Owner A: His company does $10 million a year, but $8 million of that is locked in recurring revenue.
Business Owner B: Also does $10 million—but only $2 million is recurring, while the rest is from one-time sales.
Who gets the higher valuation? Who walks away with the better deal? Who has an easier life?
The answer is obvious. Predictability beats uncertainty. Recurring revenue is king.
And yet, most entrepreneurs are still grinding out one-off sales, fighting every month to replace last month’s revenue.
If you’re one of them, let’s fix that—because if you ever want to sell your business, scale with ease, or simply sleep better at night, you need recurring revenue.
Here’s how to stop chasing sales and start building a business that pays you over and over again.
Step 1: Find Your Subscription, Contract, or Retainer Model
The best businesses don’t start from zero each month. They have customers locked in, paying consistently, and seeing so much value that they never leave.
How can you do this in your business?
✔ Sell subscriptions. Membership models, SaaS, or ongoing service plans create sticky customers.
✔ Lock in long-term contracts. Turn one-time buyers into ongoing clients with multi-year agreements.
✔ Create maintenance, retainer, or licensing models. Keep customers paying for continued access, expertise, or service.
✔ Bundle and repackage services. Offer ongoing training, exclusive content, or warranties that keep clients engaged.
The key is to make your business indispensable—so customers don’t just want to stay, they’d feel stupid leaving.
Step 2: Create “Golden Handcuffs” for Your Customers
You want customers so committed that switching is a pain.
That doesn’t mean shady contracts or hidden fees. It means offering so much value that leaving is simply not worth it.
✔ Give them reasons to stay. Constant improvements, insider access, or community benefits make quitting unattractive.
✔ Reward loyalty. Offer incentives for annual contracts instead of month-to-month payments.
✔ Integrate into their workflow. If they rely on you for critical services, they won’t risk changing.
✔ Become a true partner, not just a vendor. If you’re essential to their success, they’ll stick with you for years.
The more customers depend on you, the less likely they are to shop around.
Step 3: Train Your Sales Team to Sell and Build the Future, Not Just the Now
Most sales teams chase immediate wins—which means they push one-off deals instead of long-term solutions.
That’s a mistake.
If you want a business that compounds value over time, your sales team needs to:
✔ Sell the subscription, not the product. Shift from transactional sales to long-term commitments.
✔ Be compensated for recurring revenue. Pay commissions based on customer lifetime value, not just upfront deals.
✔ Educate buyers on the benefits of staying engaged. Make sure they see the ROI of continuity, not just a one-time purchase.
✔ Build an enduring business, have a strategy and story for increases. Your costs are increasing, you shouldn’t absorb that, be intentional with your pricing.
The best companies aren’t just hunting new customers—they’re keeping the ones they have.
Step 4: Watch These Metrics Like a Hawk
Recurring revenue isn’t just about signing people up—it’s about keeping them.
Here’s what you MUST track:
📊 Retention Rate – How many customers stick around? If they’re leaving too soon, fix it.
📊 Churn Rate – If people drop off, why? Diagnose and plug the holes.
📊 Customer Lifetime Value (LTV) – The real money is in long-term customer relationships.
📊 Recurring Revenue % of Total Sales – If most of your income still comes from one-time transactions, it’s time to shift gears.
Final Thought: Build a Business That Works FOR You
Most entrepreneurs are stuck on a treadmill, sprinting just to maintain revenue.
But the smartest ones? They build a business that pays them over and over again. Can you implement all the above best practices at once? Of course not, but you can incrementally shift your organization to embrace these proven behaviors and perspectives that will results in long term gain.
At Next Level Growth, we help businesses implement systems, shift their models, and lock in long-term revenue—so they can scale faster, with less stress and more control.
If you’re still relying on one-time sales, it’s time to build a business that compounds in value.
Let’s make that happen.
Next Steps
- Get your copy of the book you cannot afford to miss: Five Obsessions of Elite Organizations on Amazon/Audible.
- Click here to learn more about building an elite organization and the Five Obsessions of Elite Organizations.
- Have a conversation with our founders AI Clone about taking your business, and your life, to the next level
- Start a conversation with one of our Next Level Growth Business Guides about how we can help you achieve your vision for a bigger, bolder future.
