Recurring revenue model

A recurring revenue model is a business strategy where companies earn consistent income at regular intervals, typically through subscriptions or memberships. Instead of one-time sales, customers pay repeatedly for products or services over time, such as monthly subscription fees for streaming services or annual software licenses. This model offers predictable revenue, allowing companies to plan better and grow sustainably. It also fosters customer loyalty, as businesses focus on retaining subscribers by providing continuous value and service. Overall, it creates a stable financial foundation that benefits both the company and its customers.