Continuity Income – 4 Reasons You Need It
Tired of the day-to-day struggle of chasing one client after the next? Looking for a better way to run your business where you can reasonably predict your monthly income? Then, one of the best ways to stabilize your income as a self-employed professional is to create a monthly recurring source of income, otherwise known as a continuity program.
Hello and welcome. In this article, I will give you four reasons that you need continuity income.
1. Passive Income
First of all, what is passive income and why is it important? Passive income is income received on a continuing basis with little effort required to maintain it. This can lead to wealth and wealth is sometimes narrowly described as the number of days you can live on, if you stop working today. Most people would prefer to be wealthy if it means staying at home instead of working like a horse day in and day out just to make ends meet.
Having the ability to create multiple income streams that bring in “recurring income” that exceeds your monthly expenses, can go a long way toward making you financially free. How awesome is that?!
2. A Real Business
If your business is running on products that sell only once, then you really DON’T have a real business. You have the arduous task of continually finding new clients which could be very time-consuming and expensive. Even though you are self-employed, this would be no better than working a 9 – 5 job.
There is nothing wrong with selling one-time payment digital products if you are good at it and enjoy the challenge, but you need to create offers that have people paying you over and over and over again… in order to bring in continuity income.
3. True Freedom
Having continuity income gives you the freedom to start the month with income BEFORE you even begin working! You only need to bring in customers ONCE and they will continue to pay you for many months to come and all with only one marketing effort. Of course, you will continue your marketing efforts to bring in new clients who will also pay you on an ongoing basis. This is the sustainability and wealth generating factor of continuity income.
4. Can Be Sold Away
You can always sell your business if the need arises or just to bring in an immediate lumpsum. In this case you should ask for 4 to 10 times the annual profit because investors will see value in your business and will view it as a real asset. Depending on the amount of passive income your business is generating, investors will want to pay you handsomely for it.
When negotiating the sale you may consider making a deal with the buyer to continue running the business for him/her for a percentage of the monthly profits. Many buyers will agree to this because you are the one who knows all about the business and they will make money from a hands-free enterprise. Everybody wins because you will continue to generate revenue for yourself and the buyer gets his continuity income without having to lift a finger.