That’s right, it’s time for my 2012 Prediction Part 4.

I mentioned in Part 3 that there were two elements of the companies that I profiled that would be HUGE TRENDS in 2012.

I’ll share one with you now and the other in my 5th Prediction.

Here we go…

THE YEAR CONTINUITY BECOMES KING

Let’s make sure we are clear here. I’m not talking about consistency…I’m talking about RECURRING REVENUE!

Recurring Revenue is not new, it has been around forever, but it was not central to a lot of businesses or their business models. But, recurring revenue has been the “secret” to the success of many businesses we admire.

Just look at the two businesses I profiled in Part 3 of my predictions.

One has a long term recurring revenue business model, the other has a short term recurring revenue business model.

1st Company

Nutrisystems provides you monthly meals and other things for a monthly charge. In order to stay in Nutrisystems you must pay monthly, which is automatically deducted from a bank account or a credit card.

If people benefit from the system they stay in the program…think about that…Nutrisystems never has to market or promote to that person again.

They can have a customer for life or at least until that person feels they don’t need the system anymore.

2nd Company

P90X offers a short term continuity program. They provide a High Value program and then they break the payment of that program into 3 monthly installments giving their customer flexibility.

Many customers like to spread out lower payments on a High Ticket item that they like instead of trying to pay for it all at once.

You may be asking, “how can my business benefit from this model?”

First, you will get more customers to try your product because of the ease of payments and lower entry point.

Secondly, think how secure you would feel if you knew that your business quarter was going to be sustained by your current cutomers.

Remeber, CASH FLOW is vital to your business success.

 ’Low Priced Continuity’

There is one more type of continuity I want to share with you that will be HUGE in 2012. It is ‘Low Priced Continuity’ programs.

Low Priced Continuity Programs are programs or systems that charge $10 per month and less. This trend has been happening for a while, but it is going to pick up a lot of steam in 2012.

Here’s Why?

Even though continuity will be Huge in terms of business models are concerned, there are some realities that we must face.

Millions of people’s credit cards are getting maxed out as banks are lowering the limits, so $97 a month might be a stretch for some people to pay.

Many will struggle with $39.95 a month, but people will always find room for just $5 or $10 a month for something they really like and want.

Ever since the economy has been struggling, people are looking very closely at what they spend money on.

This is where “Low Priced Continuity Programs” step in.

These programs don’t need heavy persuasion tactics to get someone to try it and if they like it they will stay in it.

Big Names Are Using This Model

There are a lot of companies and even celebrities using this model, think about NETFLIX and their $8 a month program. (My family enjoys this program)

Even someone like Glenn Beck, whose show got cancelled on CNN and FOX, put his TV show online and charges $4.95 for people to watch it. It has been reported that he has 200,000 subscribers! Whether you like him or not…the model pulls in $1 million a month. 

Not As Hard as You Think

Most entrepreneurs and small business owners do not entertain ‘Recurring Revenue’ models because they think thay are hard to set up.

The truth is if you already accecpt credit card payments you are already set up. Pretty much all of the Merchant accounts allow for you to accept automatic payments.

You can even accept recurring payments with Paypal now and Paypal is FREE to set up and use.

If you deliver content online you will need an email system like 1shopping cart or Aweber. And That’s It! You can have a continuity program.

Of course you will have to have the program or system to deliver on a regular bases, and I showed you how to do that in Part 3.

Because “Low Priced Continuity” Programs are so easy to start, you’ll see more and more entrepreneurs offering them in 2012.

WARNING!

This is not some fake warning to get you to take action on something, I just want to caution you on why you want to be early on this trend in your market.

As I stated earlier… the $5 to $10 per month will be tolerable for people, but once they have 5 or 10 different programs, it will begin to add up. Then, they look to eliminate programs.

You don’t want your program to suffer or not get attention because they are already in a bunch of them.

So you want to get in early AND make sure you are providing lots of value to KEEP them.

So get out there and think about how you can turn your business and content into a Continuity program in 2012…

If you want me to have a class and teach you how to develop ‘Recurring Revenue’ in your business with Continuity Programs especially ‘Low Priced Continuity’ Programs, let me know below

QUESTIONS? COMMENTS?
SHARE YOUR THOUGHTS BELOW!

P.S. Another example of a ‘Low Priced Continuity’ Program is my ‘Association Of Black Entrepreneurs’. You can take a look here==>CLICK HERE