So why would you want to accept recurring payments? The real question is why wouldn’t you want to get paid over and over again?!
Let’s take a quick look at recurring payments, including why you’d want to use them and some specific cases where they come in handy.
Why Recurring Payments?
Three quick reasons why you should consider recurring payments:
- It’s a good business model. Every business wants to be sustainable, and what better way to be sustainable? With recurring payments you have consistent, steady revenue.
- Getting new customers is hard. It takes time, effort and money. So don’t let them walk away after a single sale. Offer on-going value so they stick around and are willing to automatically renew.
- People forget. A bill goes unpaid or a subscription lapses because people are busy and writing a check every month isn’t something they want to do. Don’t fight it—make it easy and automatic.
How to Use Recurring Payments
OK, recurring payments sound great. Now how can I actually use them?
That’s a good question. There may not be an obvious way to use recurring payments in your pricing strategy, but with some creative thinking you might be to offer it. Here are a few ways recurring payments can work for you:
- Professional Services: This could be any kind of on-going service, including retainers, coaching, support, maintenance, hosting, etc.
- Subscriptions: Newspapers, magazines, item-of-the-month club, etc.
- Dues & Fees: Any kind of regular payment works here, whether it’s membership clubs or teams, access to spaces like the gym or a coworking space, or on-going events like childcare, after school programs or meetups.
- Donations: Churches and other nonprofits can set up recurring donations to lower the cost of fundraising.
Recurring payments make a lot of sense, whether you’re a nonprofit, web developer, local club or other organization.
And if you’re a freelance web designer, you can now offer your clients the ability to use recurring payments on their websites with Exchange and the new Recurring Payment Add-on.