If you want to massively build your recurring revenue, then you have to understand this basic principle about sales.  I’ve used this to scale past $100K/month in my agency.

Let me explain how it works…

Reaching $100K in recurring revenue in your agency can be done in lots of different ways.  Let's look at two extremes:

Option 1: You could have 1 client paying you $100K month 

Option 2: You could have 100,000 clients paying $1.00 per month.

Both of these scenarios are difficult for their own reasons…

Either you have to find that one magical client..

OR, could you imagine handling 100,000 clients at the same time?  

Neither sounds ideal.

It’s more than likely that reaching the $100K mark will be made up someplace in between those two extremes, right?… But where?

It’s vital that you know this.

Most agencies who set a financial goal for themselves never considered the number of clients required OR how much each one of those clients needs to invest for them to achieve their goal.

The sad reality is agencies that wish to reach higher recurring revenues at their existing rates will probably be buried by the sheer number of clients it would take to reach the goal because each client is not investing enough.

So, the key is…

The easiest way to reach $100K in recurring revenue is not just about getting MORE clients, it’s about getting each of your clients to also INVEST MORE.

For me, I found that reaching this goal was a combination of both attracting new clients AND getting them to enroll in more of my services.  This way what they invested added up to more.  This combination is essential while only focusing on the number of clients OR average dollar sale alone is a recipe for burnout.

So how do you get clients to invest more?  Well, to understand that we need to understand something called the value ladder.

Think of a value ladder as the typical order your clients buy your services or products.  For example, what do they buy first? Second? Third?

This is obvious when looking at other industries…

My first experience with Apple products was back in 2004 when I got my first iPod.  With that entry-level product, I’ve gone on to climb up the ladder of Apple products switching from PC to Mac, buying iPads, earbuds, and just about everything else they’ve had to offer.

When it comes to your agency, there is an order your clients buy things too.   Maybe it starts with a website, then SEO, then Facebook ads, and so on….

I know I saw this pattern happen over and over in my agency.  But the other pattern I discovered was I often had “half built value ladders.”  In other words, I had clients who only bought one or two of my services.

Why was it that some clients would buy EVERYTHING I had to offer, whereas most didn’t?  

The truth was, I always had intentions to go back to clients over and over to enroll them in additional services, but I would either forget, be short on time to do it, or some other reason I thought the client didn’t need/want more help.

But time and time again, I’d be frustrated to find out when a client would hire someone else to do work that I could have done for them.

It became my mission to destroy half built value ladders in my agency.

According to the book Marketing Metrics, businesses have a 60 to 70% chance of selling to an existing customer while the probability of selling to a new prospect is only 5% to 20%.

With the odds stacked in your favor, why would you not go back to existing clients to create more opportunities for yourself?

This is exactly what I did and it’s the key strategy that has helped me scale past $100K/month in recurring revenues.

If you want to build recurring revenue, don’t forget about the people who are already supporting you.  Don’t forget about creating maximum wallet share with each of the clients you serve.  

You owe it to your clients to serve them at your fullest capacity and you owe it to yourself to build a stable business with stronger recurring revenue.

If you're curious about how this could work in your business, apply for a call with our director of coaching. We'd be happy to help you explore this idea further.