RRR Workbook
Page 1
Welcome Recurring revenue really is the holy grail of all business models. It has allowed me to run my business from some of the best beaches in the world and I'm no longer stressed about finding the next client or trading time for money. My sincere hope for you is that you find something in these materials that helps you generate recurring revenue in your business.
What You Will Learn Through this training you are going to learn the 6 “P’s” of recurring revenue: • • • • • •
people product packaging process profit prove
You will also discover how to turn existing clients and existing services into recurring revenue streams without spending lots of time or money building a product that nobody wants.
Who Am I? My name is Troy Dean and I ran a web design agency in Melbourne for three years until I almost burnt out from chasing clients and trading time for money. I made a conscious decision to walk away from my client service businesses and double down my efforts to create recurring revenue streams. Over the course of 12 months I systematically replaced my services income with products and programs. Yes I still work incredibly hard. However I no longer lay awake at night wondering how we are going to make payroll. I have also spent 8 years studying and split testing everything in my business. Now I am bringing you the best practices to shorten your learning curve and fast track your results.
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Recurring Revenue Roadmap PEOPLE Outcome A perfect client avatar is a visual, fictional representation of your target audience. Everyone in your organisation should be familiar with your perfect client avatar and be able to talk about your perfect client as if they were a close friend. A Perfect Client Avatar Card or document is a great way of keeping everyone familiar and focused. Here is an example from our business:
Concepts Your perfect client avatar should include enough information about your perfect client to bring them to life but not too much that it prohibits it evolving and changing over time. John Jantsch offers a great template in his book Duct Tape Marketing.
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“Physical description + what they want + their biggest problem + how they buy + best way to communicate with them = your perfect client.”
Exercise Go to revrev.me/avatar and download your Perfect Client Avatar template. Fill in the template based on the questions provided . Go to revrev.me/avatar-photos and choose a photo to represent your new avatar. Add the photo to complete your Perfect Client Avatar card.
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PRODUCT Outcome Recurring revenue requires a well packaged, easy to understand product that continues to add value to your customers and clients. Everyone in the organisation should be able to communicate the components of your product, how it works and the benefits received from using your product. A one-page Product Overview document allows your company to tell a consistent story about this product to your target audience. See handout.
Concepts Your product should include components that can be easily understood and easily delivered. These could be line items you already include as part of a service or they may be entirely new offerings. You should be able to clearly articulate how your product works as well as what is included (and what’s not included).
Exercise Go revrev.me/product and download your Product Overview template. Fill in the template based on the questions provided and covered in this section.
Page 5
PACKAGING Outcome Recurring revenue requires a well packaged, easy to understand product that continues to add value to your customers and clients. Everyone in the organisation should be able to communicate the components of your product, how it works and the benefits received from using your product. A one-page Product Overview document allows your company to tell a consistent story about this product to your target audience. See handout.
Concepts Your product should be named so as to clearly communicate the benefits of, or the desired outcome from using the product. Think about Michelle Bridges’ 12 Week Body Transformation as an example. Your product should include value that far outweighs the price of admission and the investment options should be clear and not negotiable. The benefits of your product should also be obvious and desirable to your marketplace.
Exercise Go revrev.me/product and download your Product Overview template. Fill in the template based on the questions provided and covered in this section.
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PROCESS Outcome You will need procedures to follow in order to sell and deliver your product to the marketplace. The more you can standardise and document your procedures, the easier it will be to optimise your business so you can add value to your customers and make a profit. Your Standard Operating Procedures document should list all the procedures that need to be documented and followed to make your product a reality. See handout.
Concepts Your Standard Operating Procedures document should list the name and description of all the procedures that need to be implemented to sell and deliver your product. How does a customer discover the product? How does a customer purchase the product? How is the product delivered? How is feedback gained from customers? How are complaints handled? How are contracts and cancellations handled?
Exercise Go revrev.me/sop and download your Standard Operating Procedures template. Fill in the template based on the questions provided and covered in this section.
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PROFIT Outcome In order to deliver your product, add continual value to your customers, generate recurring revenue and turn a profit, you will need to automate your procedures with technology and delegate procedures to team members. Your Profit Plan will help you decide which technology tools you need and which team member’s you need to recruit or train. See handout.
Concepts Technology can be used to automate a lot of procedures, such as invoicing, collecting payments, email communications, website interactions, etc. However, some procedures will need to be managed by people and having a team follow your Standard Operating Procedures will allow you as the entrepreneur to continue to optimise the procedures, maximise profit and impact more customers.
Exercise Go revrev.me/profit and download your Profit Plan template. Fill in the template based on the questions provided and covered in this section.
Page 8
PROVE Outcome There is a way (actually there are several) to prove if there is a market for your new Recurring Revenue product before you spend lots of time and money building it. Developing a Proof of Market Plan will allow you to cut to the chase and build a product people want to buy, rather than trying to sell them a product you want to build. See handout.
Concepts The key things you need to prove are that you have a problem worth solving, your communication message matches the market and that customers will actually pay you for the product. Through a series of quick feedback loops you can also discover the riskiest assumption about your new product and hopefully strengthen your offering before you launch it to the wider market.
Exercise Go revrev.me/proof and download your Proof of Market Plan template. Fill in the template based on the questions provided and covered in this section.
Page 9
Next Steps Hopefully now you have a clear plan for moving forward and creating some recurring revenue in your business. You will not replace your client services income overnight but if you follow the roadmap and take action you will be able to build some recurring revenue to ease the pressure. I would love you to keep in touch and let me know how you use this information. I would also love to hear your feedback on this training. Is there anything we missed or anywhere we can improve it? Feel free to email me at [email protected] Now go forth and create some recurring revenue. Stay curious and make some noise.
Troy Dean.
Welcome Recurring revenue really is the holy grail of all business models. It has allowed me to run my business from some of the best beaches in the world and I'm no longer stressed about finding the next client or trading time for money. My sincere hope for you is that you find something in these materials that helps you generate recurring revenue in your business.
What You Will Learn Through this training you are going to learn the 6 “P’s” of recurring revenue: • • • • • •
people product packaging process profit prove
You will also discover how to turn existing clients and existing services into recurring revenue streams without spending lots of time or money building a product that nobody wants.
Who Am I? My name is Troy Dean and I ran a web design agency in Melbourne for three years until I almost burnt out from chasing clients and trading time for money. I made a conscious decision to walk away from my client service businesses and double down my efforts to create recurring revenue streams. Over the course of 12 months I systematically replaced my services income with products and programs. Yes I still work incredibly hard. However I no longer lay awake at night wondering how we are going to make payroll. I have also spent 8 years studying and split testing everything in my business. Now I am bringing you the best practices to shorten your learning curve and fast track your results.
Page 2
Recurring Revenue Roadmap PEOPLE Outcome A perfect client avatar is a visual, fictional representation of your target audience. Everyone in your organisation should be familiar with your perfect client avatar and be able to talk about your perfect client as if they were a close friend. A Perfect Client Avatar Card or document is a great way of keeping everyone familiar and focused. Here is an example from our business:
Concepts Your perfect client avatar should include enough information about your perfect client to bring them to life but not too much that it prohibits it evolving and changing over time. John Jantsch offers a great template in his book Duct Tape Marketing.
Page 3
“Physical description + what they want + their biggest problem + how they buy + best way to communicate with them = your perfect client.”
Exercise Go to revrev.me/avatar and download your Perfect Client Avatar template. Fill in the template based on the questions provided . Go to revrev.me/avatar-photos and choose a photo to represent your new avatar. Add the photo to complete your Perfect Client Avatar card.
Page 4
PRODUCT Outcome Recurring revenue requires a well packaged, easy to understand product that continues to add value to your customers and clients. Everyone in the organisation should be able to communicate the components of your product, how it works and the benefits received from using your product. A one-page Product Overview document allows your company to tell a consistent story about this product to your target audience. See handout.
Concepts Your product should include components that can be easily understood and easily delivered. These could be line items you already include as part of a service or they may be entirely new offerings. You should be able to clearly articulate how your product works as well as what is included (and what’s not included).
Exercise Go revrev.me/product and download your Product Overview template. Fill in the template based on the questions provided and covered in this section.
Page 5
PACKAGING Outcome Recurring revenue requires a well packaged, easy to understand product that continues to add value to your customers and clients. Everyone in the organisation should be able to communicate the components of your product, how it works and the benefits received from using your product. A one-page Product Overview document allows your company to tell a consistent story about this product to your target audience. See handout.
Concepts Your product should be named so as to clearly communicate the benefits of, or the desired outcome from using the product. Think about Michelle Bridges’ 12 Week Body Transformation as an example. Your product should include value that far outweighs the price of admission and the investment options should be clear and not negotiable. The benefits of your product should also be obvious and desirable to your marketplace.
Exercise Go revrev.me/product and download your Product Overview template. Fill in the template based on the questions provided and covered in this section.
Page 6
PROCESS Outcome You will need procedures to follow in order to sell and deliver your product to the marketplace. The more you can standardise and document your procedures, the easier it will be to optimise your business so you can add value to your customers and make a profit. Your Standard Operating Procedures document should list all the procedures that need to be documented and followed to make your product a reality. See handout.
Concepts Your Standard Operating Procedures document should list the name and description of all the procedures that need to be implemented to sell and deliver your product. How does a customer discover the product? How does a customer purchase the product? How is the product delivered? How is feedback gained from customers? How are complaints handled? How are contracts and cancellations handled?
Exercise Go revrev.me/sop and download your Standard Operating Procedures template. Fill in the template based on the questions provided and covered in this section.
Page 7
PROFIT Outcome In order to deliver your product, add continual value to your customers, generate recurring revenue and turn a profit, you will need to automate your procedures with technology and delegate procedures to team members. Your Profit Plan will help you decide which technology tools you need and which team member’s you need to recruit or train. See handout.
Concepts Technology can be used to automate a lot of procedures, such as invoicing, collecting payments, email communications, website interactions, etc. However, some procedures will need to be managed by people and having a team follow your Standard Operating Procedures will allow you as the entrepreneur to continue to optimise the procedures, maximise profit and impact more customers.
Exercise Go revrev.me/profit and download your Profit Plan template. Fill in the template based on the questions provided and covered in this section.
Page 8
PROVE Outcome There is a way (actually there are several) to prove if there is a market for your new Recurring Revenue product before you spend lots of time and money building it. Developing a Proof of Market Plan will allow you to cut to the chase and build a product people want to buy, rather than trying to sell them a product you want to build. See handout.
Concepts The key things you need to prove are that you have a problem worth solving, your communication message matches the market and that customers will actually pay you for the product. Through a series of quick feedback loops you can also discover the riskiest assumption about your new product and hopefully strengthen your offering before you launch it to the wider market.
Exercise Go revrev.me/proof and download your Proof of Market Plan template. Fill in the template based on the questions provided and covered in this section.
Page 9
Next Steps Hopefully now you have a clear plan for moving forward and creating some recurring revenue in your business. You will not replace your client services income overnight but if you follow the roadmap and take action you will be able to build some recurring revenue to ease the pressure. I would love you to keep in touch and let me know how you use this information. I would also love to hear your feedback on this training. Is there anything we missed or anywhere we can improve it? Feel free to email me at [email protected] Now go forth and create some recurring revenue. Stay curious and make some noise.
Troy Dean.
