The Magic of Recurring Payments

Here is a great post from another of my favorite new blogs, PsychoTactics.

This year for the first time ever, the yoga teacher has been able to take a break.

Not for a week, or two weeks, but for a whole month. And all the while there is a steady flow of income coming through the door, despite the class being shut.   That's changed from last year?

The answer is: Recurring Payments.

You may not think it's a big deal but there's some part of your business, if not a major part of your business that could be continuously fed by a recurring system.

Lawn mowing services do the recurring thingy.
Fancy membership clubs do the recurring thingy.
And so do a lot of businesses.

Of course the yoga teacher is going to replace the one month away by giving goodies away to his class. But in essence, for the first time ever, that yoga teacher is getting a break. Some time to breathe.  And all because he's put a recurring system in place.

You should too. Right away.

Comments

[Traverse City Lawyer]

I am currently exploring a monthly retainer (i.e. flat monthly fee) for certain clients. In short, they would pay per month for certain defined activities. They would pay monthly on a 'subscription' plan which would spread out the cost of their more standardized legal services.

For small and medium size businesses, this works since it allows them to budget legal dollars. They key is to define which legal activities are inside and outside the subscription plan.

Further, since many clients can not pay the huge lump sum payments which certain legal activities tend to generate, I am thinking about up front financing which allows clients to pay over time, even after their case is resolved. Most attorneys would think this is foolhardy. However, nearly every other type of business does it. If you build loyalty in your client base, I believe that bad debt will be minimal.

I'll let you know how it goes.....

Enrico Schaefer
Traverse City Lawyer
Revolutionizing the Practice of Law