10+ Best & Profitable Recurring Revenue Business Ideas [2023]

Looking to start a profitable business in 2023? Look no further! Check out this article to discover the top 10+ best and most profitable recurring revenue business ideas to get started on the right foot. From subscription-based services to digital product sales and more, find the perfect business model for your goals!
Newfoundr

By Nick Cotter
Updated Feb 07, 2024

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This page may feature products from our affiliate partners, which could influence the products we discuss due to potential compensation. Despite this, our evaluations are impartial, based solely on our independent analysis. The content here is intended for informational purposes and should not be seen as legal advice. For professional guidance, consulting with a legal expert is recommended.
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Hey there, future business moguls! You know, there's something incredibly exciting about the start of a new year, isn't there? It's like standing on the edge of a cliff, the wind in your hair, a world of opportunities spread out before you. It's that feeling of exhilaration, the thrill of the unknown, the promise of untapped potential. And for those of us with that entrepreneurial spirit coursing through our veins, it's the perfect time to dive headfirst into a new business venture.

But hold up! We're not just talking about any business venture here. We're talking about the kind of business that keeps the cash flowing in, month after month, year after year. Yes, folks, we're talking about recurring revenue business models.

Why? Because it's the smart way to do business. It's the way to build a sustainable, profitable venture that doesn't just survive but thrives! And let's be honest, who doesn't want that? So, whether you're a seasoned entrepreneur looking for your next big thing, or a newbie just dipping your toes in the entrepreneurial waters, you're in the right place.

Get ready, because we're about to unveil the 10+ best and most profitable recurring revenue business ideas for 2023. Buckle up, it's going to be an exciting ride!

Subscription Boxes

A Subscription box is a service in which customers can sign up to receive a box of goods delivered on a regular basis, such as monthly or quarterly. Subscription boxes are typically geared towards a specific industry or interest and typically offer products such as clothing, beauty items, food, and lifestyle goods. With this business model, customers are able to discover new brands and products in one convenient package.

  • It is a convenient way for customers to discover new items.
  • Subscription boxes can cater to specific interests and needs.
  • By subscribing, customers commit to receiving a box of goods each month/quarter.
  • Offering a subscription box service can provide companies with recurring revenue.
image of a Subscription Boxes

Software-as-a-service (saas)

Software-as-a-service (SaaS) is a cloud-based approach of delivering application solutions to users over the internet. By having users access the application through a web browser, updates are streamlined, and customers can use the application from multiple devices. From a business standpoint, there are numerous advantages that make SaaS a great option for entrepreneurs and businesses. These include:

  • Low upfront cost compared to on-premise software solutions
  • Flexibility in scaling up or down as needed
  • Ability to quickly deploy and test new features
  • No need to maintain IT infrastructure
  • Short development cycles which allow for faster implementation
  • Reoccurring revenue from subscription fees and licensing agreements
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Examples of successful businesses:

Many companies are successful in the recurring revenue business industry, with products and services that are designed to provide customers with a steady and consistent stream of income. Here is a list of some of the most successful businesses in this sector:

  • Salesforce
  • Dropbox
  • Spotify
  • Netflix
  • Adobe
  • Microsoft 365
  • Apple Music
  • Amazon Web Services
  • Shopify
  • Google Cloud Platform

Membership Clubs

A Membership club is a type of business that advantages members by providing them exclusive benefits, discounts, or access to certain products and services. Membership clubs are an attractive business idea for entrepreneurs because it gives them the opportunity to create a recurring revenue stream with their members. Benefits of creating a membership club include:

  • A predictable, recurring revenue stream
  • Stronger customer relationships and enhanced loyalty
  • Higher perceived value and more opportunities to upsell
  • Chance to offer exclusive content or products not available elsewhere
  • Opportunity to create unique experiences for members

Online Courses

Online courses are a great way for businesses to offer education and training to their customers. With the help of technology, businesses can provide flexible and affordable learning opportunities to interested people all around the world. Benefits of online courses for businesses include:

  • Potential for increased revenue
  • Cost savings on physical infrastructure
  • More control over the educational experience
  • Flexibility in course formats, such as videos, tutorials, and quizzes
  • Easy accessibility to a larger audience

Magazine Or Newspaper Subscriptions

Magazine and newspaper subscriptions are a great way to get your business noticed. With so many people consuming news and entertainment online and through other digital channels, print media still carries a certain prestige. Providing subscription-based access to magazines and newspapers can be a great way to tap into that prestige and reach a wide audience.

  • Subscriptions provide recurring revenue for your business
  • Can reach large, diverse consumer base
  • Establishes your business’s credibility as an authoritative source
  • Unique marketing opportunities in the form of sponsored content
  • Can be paired with other services or products to create subscription-bundles

Coaching And Consulting Services

Coaching and consulting services provide individuals and organizations with tailored advice and strategies that help to create positive change. Such services have become increasingly popular in recent years, with the number of customers seeking out such guidance constantly on the rise. Businesses that offer tailored coaching and consulting services are often very successful due to the unique insights and support they provide.

  • Customers receive individualized advice that is tailored to their specific goals
  • Such services are in high demand, so businesses offering them can quickly and easily attract new customers
  • Clients benefit from the expertise of an experienced consultant/coach who can give personalized advice
  • The success of a client's project or endeavor can be monitored over time, making it easy to assess the effectiveness of any changes
  • Businesses offering such services have the potential to build long-term relationships with customers

Rent-to-own Services

Rent-to-own services are a type of payment option that allows customers to rent items and then, after a set period of time, have the option to purchase them. This can be an attractive option for people who either cannot, or do not want to, purchase items outright. Rent-to-own services can make a great business idea for those looking to start their own business as:

  • Rent-to-own can offer customers access to a variety of products that they may not have been able to buy outright.
  • It gives customers the ability to try out the product before making a commitment.
  • The purchasing process can be made easier and more affordable with monthly payments.
  • The service can grow rapidly through word of mouth, creating long-term financial success.

Recurring Delivery Services

A Recurring delivery services is a type of delivery service where products are regularly shipped to customers on a predetermined schedule. Recurring delivery is a great business idea because it enables businesses to offer customers convenient, reliable, and regular deliveries that they can depend on. There are several key benefits to setting up a recurring delivery service:

  • It allows businesses to better manage customer demand and stock levels.
  • It encourages customer loyalty by providing them with a reliable and dependable service.
  • It allows businesses to offer discounted products or special offers as part of the subscription.
  • It helps reduce operational costs by reducing the number of calls and queries related to ordering.
  • It enables businesses to keep in touch with their customers more efficiently by using automated messages or emails.

Freelance Services

Freelance services involve providing services as a self-employed person. This can include anything from designing websites to writing articles or providing business services, such as bookkeeping or web development. Freelance services can make a great business idea, as it:

  • Allows for flexible hours and location
  • Requires minimal investment
  • Gives you control over the kinds of work you take on
  • Enables you to focus on areas that interest you and you have expertise in
  • Gives you the opportunity to build a client base and gain more experience

Digital Products And Services

Digital products and services are digital goods that are available for purchase over the internet. These items may include software, online courses, streaming movies and music, e-books, articles, digital art, and more. Digital products and services make a good business idea because they offer:

  • Low overhead costs
  • Ability to reach a global audience
  • Programs can be automated
  • 24/7 access and customer service
  • Potential for recurring income

Newfoundr

Founder and CEO

We're newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.