The Key to Recurring Revenues and a Sustainable Business
David Frey said, and I completely agree, "If you don't have continuity, then you don't have a business." This statement underscores the importance of the continuity funnel as an essential part of any value ladder. In essence, continuity refers to the recurring revenue a business earns by providing ongoing access to information, software or any other product, typically through a monthly, weekly or even annual subscription.
What is a Continuity Funnel?
A continuity funnel is a sales strategy designed to convert one-time customers into recurring subscribers. Through this funnel, businesses are able to generate stable and predictable revenue, ensuring a long-term relationship with their customers.
The basic structure of a continuity funnel includes:
- Entry Hook: Something of value is offered at low cost or for free, such as an ebook, a free trial or a mini-course, with the goal of attracting prospects and building trust.
- Subscription OfferOnce the prospect has accepted the initial offer, they are presented with a subscription offer. This may include access to an exclusive community, premium content, software, or any other product or service that justifies a recurring payment.
- Upsells and DownsellsDuring the purchasing process, additional products or alternatives can be offered at different prices to maximize the value for each customer.
- Delivery and RetentionOnce a customer has subscribed, the goal is to keep them satisfied and engaged to ensure they continue with their subscription. This is achieved by constantly delivering value, whether through updates, new content, or excellent customer service.
Implementation in the Sales Sequence
After a lead has gone through a two-step funnel or an opera sequence, it is the ideal time to introduce the continuity funnel. Sending a sequence of short mailings that promote continuity is an effective tactic for transforming one-time customers into recurring subscribers. The charge can be monthly, weekly or yearly, depending on the nature of the product or service offered.
Many entrepreneurs wonder when is the best time to use a continuity funnel. While some use it as a first step to generate leads, a more effective strategy is to implement it as the second funnel in the sales sequence, after the customer has had a chance to connect with the "attractive persona." This strategic wait can dramatically increase the "stick rate," i.e., how long a customer remains an active, paying member.
Effective Scripts and Strategies
One of the advantages of continuity funnels is that you can use the same scripts you have previously introduced to get people to join your programs. For example:
- Who, What, Why, HowThis script is highly effective when selling a free trial or at a symbolic price of one dollar.
- Star, Story, SolutionIf you plan to sell continuity without a free trial, this script is a recommended option.
In addition, you can increase the value of each customer by offering OTO (One-Time Offers) after they have subscribed to the membership. Additional sales, such as annual or lifetime accounts, are extremely effective strategies for maximizing revenue from continuity programs.
Start Creating Your Own Continuity Funnels
The continuity funnel is a powerful tool that not only generates recurring revenue, but also strengthens long-term customer relationships. By properly implementing this type of funnel, any business can transform one-time customers into loyal subscribers, thus ensuring a steady stream of revenue and the stability needed to grow and prosper.
If you are interested in creating your own continuity funnels and start generating recurring income, I invite you to try out ClickFunnels.
This platform allows you to design and launch sales funnels quickly and efficiently, even if you have no technical experience. Plus, you can start with a 14-day free trial at no cost, which gives you the opportunity to explore all its features and see how it can transform your business.
If you already have a WordPress site and you want to create this kind of funnels you can try with CartFlows.
In the web hosting plans that we manage we include this type of plugins for your projects. If you prefer to have someone else handle this for you, I am here to help you integrate these strategies.
