Subscription business models aren’t just for razors and beauty boxes. Could your business benefit from building a recurring revenue stream?
Subscription billing (also called recurring payments, automatic payments, or automated billing) means you have an agreement to automatically charge your repeat customers’ payments to a saved credit (or debit) card, instead of them having to remember to pay each invoice.
The most important reason to adopt recurring billing is to make your revenue more predictable and minimize overdue invoices, leading to better cash flow management and more time to spend on the tasks that make you money.
A subscription business model works for both product- and service-based businesses, and can also be set up for only a segment of your customers. Having even a portion of your customers on subscription helps you build relationships and brand loyalty. And if you have the right tools to manage your automatic payments, you’re going to free up a lot of time that you used to spend invoicing customers and chasing down payments.
Wave’s new automatic payments features are designed to help a variety of businesses—each with different challenges—run smoother. Here’s a quick look at how three different businesses can use automatic payments to save time.
Gyms, yoga studios and boutique fitness clubs naturally lend themselves perfectly to a subscription model. Since many gyms use memberships for the bulk of their customers, automatic billing is essential. Wave makes it simple for personal trainers, for example, to set up new clients on auto-pay as they join, and easily see the status of all their customers’ payments.
Photographers, freelance writers, web developers, and other creative professionals have customers who use their services regularly, as well as those who don’t. Wave offers these freelancers the option to bill their regular customers automatically with recurring invoices, and still create professional, customized invoices with flexible payment options for their ad hoc customers. This combination of recurring billing for regular customers and one-off invoices for ad hoc customers can help you get paid faster and more regularly from month-to-month.
Home maintenance businesses often have loyal customers who go to them on a recurring basis, but the seasonal nature of their business means they need more flexibility for billing their customers. For example, landscapers might have some customers who use their services weekly, and others who call a few times a season. Wave has the most flexible scheduling tool available, so landscapers can schedule automatic payments daily, weekly or monthly or they can fully customize the frequency to meet their needs.
Visit waveapps.com/payments/recurring-billing to learn more about Wave’s new recurring billing features.
Watch our webinar to see a demo of the new features:
Not using Wave yet?
Wave’s free, secure, financial management software makes it easier to invoice clients, get paid, and manage your books. Simply visit waveapps.com, click on “Create your free account,” and enter your email. You’ll be up and running in seconds. Try one of our free webinars to get the lay of the land, and download a copy of Fearless Accounting with Wave to get started with confidence.
The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.