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With an automated reorder system on other hand, your customer needs to make a positive effort not to reorder. It’s a well known fact that customers who pay for products and services by subscription are much more loyal and less likely to cancel. Even if they do decide to opt out they tend to delay this for longer than they would otherwise.
Think about it for a moment. Have you ever kept a subscription running for longer than you intended, or do you know someone else who has? Perhaps you might even have some small but regular subscription running right now that you’ve completely forgotten about.
That, of course, is reason why many companies will give you a reduction in standard rate if you set up a subscription agreement. Reader’s digest know value of this. So do telephone companies, electricity companies, internet service providers and software providers around world. Now you know about it too – take advantage if you possibly can.
Finally – and let’s not kid ourselves here – many people don’t like selling. There are ways round this and it’s possible to minimise discomfort some people feel – but it’s still there at some level for many of us.
Picture scene. You’ve just made a sale, you feel great and you’re already thinking about how you’re going to spend you hard earned money. Then it hits you – you’ve got to do it all again this afternoon, tomorrow, next week. Takes gloss off a bit – right?
Now think about a slightly different scenario. You’ve just made a sale. Your new customer has signed a repeat subscription agreement and you are going to benefit for months, if not years to come. Is that a better home movie? I think it is.
There are other benefits of residual income but, for sake of brevity, I hope that those already discussed above provide sufficient compulsion for you to actively seek out at least one residual income stream.
To summarise, genuine residual income will help you maximise returns on your efforts and build a solid, reliable and predictable income from your home business. You need it.
Hamish Hayward http://www.perfectsystem.co.uk/
Discover the 6 key criteria you need to apply when assessing business opportunities. http://www.perfectsystem.co.uk/