Comments on: Business Strategy: The Recurring Income Trap http://www.jonathanfields.com/blog/business-strategy-the-recurring-income-trap/ Entrepreneurship, marketing, personal devlelopment Fri, 10 Sep 2010 05:38:12 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Fields A Wake Up Call « A Membership Conversation http://www.jonathanfields.com/blog/business-strategy-the-recurring-income-trap/#comment-17576 Fields A Wake Up Call « A Membership Conversation Mon, 09 Aug 2010 20:48:14 +0000 http://www.jonathanfields.com/blog/?p=3120#comment-17576 [...] I have been unable to stop thinking about it and continue to refer back to it.  The post is titled Business Strategy: The Recurring Income Trap (click for [...] [...] I have been unable to stop thinking about it and continue to refer back to it.  The post is titled Business Strategy: The Recurring Income Trap (click for [...]

]]> By: 2am. Thinking outside the black box. http://www.jonathanfields.com/blog/business-strategy-the-recurring-income-trap/#comment-13892 2am. Thinking outside the black box. Fri, 19 Mar 2010 10:11:07 +0000 http://www.jonathanfields.com/blog/?p=3120#comment-13892 [...] Jonathan Fields on exer­cis­ing new ideas. Scan­di­uzzi noted that the pri­mary mod­els for ACT’s new pric­ing and struc­ture are gym mem­ber­ship plans and Net­flix. Essen­tially, for $25 a month, you can go to any­thing at ACT at any time. What they’ve cre­ated is “the­atre on demand.” In this post, Jonathan Fields walks us through how this kind of plan might work, and how to keep it from becom­ing a crutch instead of a long-term solution. [...] [...] Jonathan Fields on exer­cis­ing new ideas. Scan­di­uzzi noted that the pri­mary mod­els for ACT’s new pric­ing and struc­ture are gym mem­ber­ship plans and Net­flix. Essen­tially, for $25 a month, you can go to any­thing at ACT at any time. What they’ve cre­ated is “the­atre on demand.” In this post, Jonathan Fields walks us through how this kind of plan might work, and how to keep it from becom­ing a crutch instead of a long-term solution. [...]

]]> By: Cynthia Morris http://www.jonathanfields.com/blog/business-strategy-the-recurring-income-trap/#comment-13586 Cynthia Morris Thu, 04 Mar 2010 14:02:13 +0000 http://www.jonathanfields.com/blog/?p=3120#comment-13586 I can't imagine innovation as a burden. If I'm not making new initiatives regularly, I get so bored. The constantly growing online business possibilities make this fun! Thanks for a great series. I can’t imagine innovation as a burden. If I’m not making new initiatives regularly, I get so bored. The constantly growing online business possibilities make this fun!

Thanks for a great series.

]]> By: Who Else Wants to Make a Membership Site With Their WordPress Blog? | Ristvin Marketing Blog http://www.jonathanfields.com/blog/business-strategy-the-recurring-income-trap/#comment-13576 Who Else Wants to Make a Membership Site With Their WordPress Blog? | Ristvin Marketing Blog Wed, 03 Mar 2010 18:23:24 +0000 http://www.jonathanfields.com/blog/?p=3120#comment-13576 [...] Business Strategy: The Recurring Income Trap [...] [...] Business Strategy: The Recurring Income Trap [...]

]]> By: Business Strategy Part 3: Taking Membership and One-Offs Online http://www.jonathanfields.com/blog/business-strategy-the-recurring-income-trap/#comment-13544 Business Strategy Part 3: Taking Membership and One-Offs Online Tue, 02 Mar 2010 15:28:14 +0000 http://www.jonathanfields.com/blog/?p=3120#comment-13544 [...] the last two posts in this business strategy series, we’ve talked about the monthly membership business model and the innovating-without-a-net business strategy as they play out in the offline world. In this [...] [...] the last two posts in this business strategy series, we’ve talked about the monthly membership business model and the innovating-without-a-net business strategy as they play out in the offline world. In this [...]

]]> By: Gail http://www.jonathanfields.com/blog/business-strategy-the-recurring-income-trap/#comment-13505 Gail Sun, 28 Feb 2010 12:43:51 +0000 http://www.jonathanfields.com/blog/?p=3120#comment-13505 I use this model, but I use many other options for payment as well. We never become complacent, it's never a set and forget model on both parts, we are constantly upping the ante for our students and for our staff! Maybe if the auto-pay was the only option this could happen, but since it's not it keeps things interesting always! I use this model, but I use many other options for payment as well. We never become complacent, it’s never a set and forget model on both parts, we are constantly upping the ante for our students and for our staff! Maybe if the auto-pay was the only option this could happen, but since it’s not it keeps things interesting always!

]]> By: Teresa http://www.jonathanfields.com/blog/business-strategy-the-recurring-income-trap/#comment-13392 Teresa Wed, 24 Feb 2010 16:57:45 +0000 http://www.jonathanfields.com/blog/?p=3120#comment-13392 Does recurring income make people complacent? Probably, since there’s a promise of profit without much effort. Maybe a little instability is needed to always keep people on their toes. I agree, it is tragic when the chance to innovate and improve is perceived as a burden rather than an opportunity to add to one’s skill set and grow. However, recurring income or not, we should remember to be responsible for ourselves and our ability to recognize and grab opportunities as we see them. P.S. See how overcoming your fears and building self esteem can help you achieve business success, recurring income or none. Does recurring income make people complacent? Probably, since there’s a promise of profit without much effort. Maybe a little instability is needed to always keep people on their toes. I agree, it is tragic when the chance to innovate and improve is perceived as a burden rather than an opportunity to add to one’s skill set and grow. However, recurring income or not, we should remember to be responsible for ourselves and our ability to recognize and grab opportunities as we see them.

P.S. See how overcoming your fears and building self esteem can help you achieve business success, recurring income or none.

]]> By: susan kuhn frost (@sweetsue) http://www.jonathanfields.com/blog/business-strategy-the-recurring-income-trap/#comment-13342 susan kuhn frost (@sweetsue) Mon, 22 Feb 2010 16:14:27 +0000 http://www.jonathanfields.com/blog/?p=3120#comment-13342 Hi Jonathan (I do look forward to meeting you soon!) -- Let me take a different tack -- I refute your point thus: Take a look at http://ryanlee.com, a "guru" in the recurring revenue field. Ryan comes from the fitness arena and has made himself into a leader in the recurring revenue model (or models). He's a business person, not a "get rich quick" fantasizer. The fault is not in the business model, the fault is in the business person. The "set it and forget it" mindset can play out in two forms: (a) fully expecting that an online business "should" work because you put up a web site, or (b) "maintaining" a membership program like a job-holder rather than "innovating" like a creative entrepreneur. Business models are just abstractions of actual successful businesses. You can't just parachute one into a new situation and expect it to work ipso facto. A business model is a pointer, not a guarantee. In fact, innovating at business models is what really distinguishes entrepreneurs! That's when it gets fun, rewarding, and game-changing. I'm going to write more about this on my (new!) blog....thanks for the insightful article! Cheers and all the best, Susan Kuhn Frost Hi Jonathan (I do look forward to meeting you soon!) —

Let me take a different tack — I refute your point thus:

Take a look at http://ryanlee.com, a “guru” in the recurring revenue field. Ryan comes from the fitness arena and has made himself into a leader in the recurring revenue model (or models). He’s a business person, not a “get rich quick” fantasizer.

The fault is not in the business model, the fault is in the business person. The “set it and forget it” mindset can play out in two forms:

(a) fully expecting that an online business “should” work because you put up a web site, or

(b) “maintaining” a membership program like a job-holder rather than “innovating” like a creative entrepreneur.

Business models are just abstractions of actual successful businesses. You can’t just parachute one into a new situation and expect it to work ipso facto. A business model is a pointer, not a guarantee.

In fact, innovating at business models is what really distinguishes entrepreneurs! That’s when it gets fun, rewarding, and game-changing.

I’m going to write more about this on my (new!) blog….thanks for the insightful article!

Cheers and all the best,

Susan Kuhn Frost

]]> By: Shane http://www.jonathanfields.com/blog/business-strategy-the-recurring-income-trap/#comment-13308 Shane Sat, 20 Feb 2010 04:48:05 +0000 http://www.jonathanfields.com/blog/?p=3120#comment-13308 Jonathan, Great post - but I have to say that I only partially agree here. Your post kind of says that if you want to have a recurring revenue model then you will be lazy. I think this is systemic corporate culture and does not necessarily represent every business out there. Take 37signals. I have used their stuff for a long time. My payment comes out and I'm happy I don't have to deal invoices, etc. They are always providing value and taking care of their customers in new an innovative ways. So in this case, it does work. In my mind, the laziness you describe is not a fault of a model, it's a fault of the purpose and the people behind the model. Jonathan,
Great post – but I have to say that I only partially agree here. Your post kind of says that if you want to have a recurring revenue model then you will be lazy. I think this is systemic corporate culture and does not necessarily represent every business out there.

Take 37signals. I have used their stuff for a long time. My payment comes out and I’m happy I don’t have to deal invoices, etc. They are always providing value and taking care of their customers in new an innovative ways. So in this case, it does work. In my mind, the laziness you describe is not a fault of a model, it’s a fault of the purpose and the people behind the model.

]]> By: Business Strategy Part 2: SoulCycle Does Fitness Right http://www.jonathanfields.com/blog/business-strategy-the-recurring-income-trap/#comment-13294 Business Strategy Part 2: SoulCycle Does Fitness Right Fri, 19 Feb 2010 15:09:05 +0000 http://www.jonathanfields.com/blog/?p=3120#comment-13294 [...] week, in Part 1 of this series on business strategies, we saw how locking people into monthly memberships has the potential to smooth cash flow, BUT it [...] [...] week, in Part 1 of this series on business strategies, we saw how locking people into monthly memberships has the potential to smooth cash flow, BUT it [...]

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