Recurring Revenue can be the lift to your business’s bottom line you’ve been searching for – and pest control can offer that additional revenue stream you seek. As a Spring-Green Business Owner, you’ll tap into a powerful network of brand power, quality services, and behind the scenes processes to help you build a diverse and growing business. Let’s start with a few definitions and explanations.
What is Recurring Revenue?
The Recurring Revenue business model is when a customer signs up for a product or service in exchange regularly for a recurring fee charged at scheduled intervals (monthly, quarterly or yearly). This model forms the base for subscription businesses and membership services.
Why do I need Recurring Revenue streams in my business?
- First, it creates a relationship between your business and the consumer that keeps them coming back to you.
- Second, The Recurring Revenue is a stream you can count on. Even if your contract is written in a way that the customer can cancel at any time or with only a month’s notice. You can count on a certain amount of revenue flow to be coming into your business each month. These projections can help you plan for the future, in terms of capital expenditures, hiring decisions, and other growth-related strategies.
- Third, your Recurring Revenue will help you weather the seasonal downturns that come with the lawn care industry. Diversification is an important aspect of your business as it reaches for higher revenue goals year over year.
How is Pest Control a Recurring Revenue service?
The pest control market in the United States is on a growth trajectory (approximated at 4% to 5% annual growth). Another added strength of the industry is that it’s less cyclical than lawn care, secured by long-term contracts that bring in Recurring Revenue and fall into a nondiscretionary income category.
- High Recurring Revenue. Pests are an ongoing threat to homes and businesses. The need for a quality service provider does not go away over time, making it easy for the business to lock in a Recurring Revenue stream. Typically monthly, bimonthly, or quarterly, pest control relationships can create an extremely profitable, viable, and long-lasting revenue stream for your business.
- The nondiscretionary income relationship. For many customers, especially commercial customers, a regularly scheduled pest control service is a requirement of doing business or mandatory for protecting the home from unwanted pests. This makes the demand, not only strong, but stable for the service. It also creates a relationship that is not contingent upon economic fluctuations.
- Strong market growth. The American pest control industry is growing and that trend is not anticipated to change. As the presence of pests continues to grow along with the global average temperature rates, the growth pattern appears to be solid. This growth has a non-cyclical nature making it a great addition to the lawn care business which does have a seasonal ebb and flow.
What are types of Recurring Revenue relationships?
- Auto-renewal – The most popular is the auto-renewal relationship. It typically requires an advance notice to cancel or it will renew at a set time (usually monthly).
- Hard contracts – These types of Recurring Revenue models lock the customer into a service for a year. It may be spread out to monthly payments but the length of the relationship is locked in.
- Urge-based subscriptions – With usage-based subscriptions, the consumer is billed as needed or at scheduled intervals based on their need.
How can Spring-Green Pest Control help me get the Recurring Revenue I need?
- The power of a strong brand. Consumers like to work with brands they trust. Spring-Green is a household name that’s equated with quality and customer service. This strength of the brand leads to trust. Our customers already trust us with lawn care services so making the step over to pest control is a logical and easy move.
- A proven business model already in place. Spring-Green Business Owners don’t have to reinvent the wheel. They simply tap into a powerful system that is already tested and ready to go. It’s that easy to add a new revenue stream to your bottom line – with the support of Spring-Green.
- The support you need to succeed. Spring-Green provides you with the tools, resources, and tips to help you create a viable business that includes Recurring Revenue models such as the one that pest control brings to the table. We help you optimize your efforts, reduce learning curves, and feel supported each step of the way.
Tap into the power of a Recurring Revenue stream today with the help of the pros at Spring-Green. With a brand strength of over three decades of success under their belt, Spring-Green can guide you toward a successful business endeavor that has been road-tested over the long term.