The End Of The “Feast-Or-Famine” Cycle

21328457 - close-up of human hand inserting coin in vending machine

If you have a business and you’re tired of playing hide-and-seek with money, consider this truly horrifying scenario:

Suppose a Lex Luthor (or a Dr. Evil) type of person came up with a “brilliant” new technology:

He got total control of the Earth’s entire air supply.

And then, he came up with this “awesome” new business idea:

He would sell fresh air to every one of us, so we had to pay him every time we wanted to breathe.

Now let’s say this scourge upon humanity actually gets the business up and running.

Well, too bad for all of us, right?

I mean… so much for life as we know it.

Hey, now that’s an awful scenario, isn’t it?

But just think of the business possibilities:

For this Lex Luthor/Dr. Evil businessman: guaranteed income, day-in, day-out.

’Cause you’d have to pay, right? If you wanted to breathe, that is.

All of us would have to pay. Every day. Period. End of story.

Fortunately, no one has figured out how to do that yet.

 And with any luck at all, no one ever will.

(I was gonna say, “Don’t hold your breath.” But that wouldn’t really fit so well into this narrative, now would it?)

Yet there are businesses that have the next best thing—minus the doomsday scenario.

They are not evil businesses–most of them aren’t, as far as I know–but, they’ve figured out a legal and ethical business model to sell products and services so they get all-but-guaranteed recurring revenues.

Reliable money coming in the door, month after month after month.

Cell phone carriers. Energy companies. Grocery stores. Internet service providers. Insurance companies. Coffee roasters.

People keep paying them, winter, spring, summer and fall.

To be clear: These businesses are for the most part not evil. They’re not making you pay for oxygen. But they’re lucky. Because they’ve figured out a business model to provide value, that cures the “feast-or-famine” cycle.

Is your business like that?

Probably not.

After all, most businesses are not like that.

But it’s possible to become more like these businesses. You can add more recurring revenue to your business without metering oxygen.

It’s entirely possible to break the “feast-or-famine” cycle without coercing customers or becoming one of the bad guys.

Not only that. The chances are really good that you’ve overlooked opportunities to get more predictable cash coming in the door month after month.

You can get more regular cash coming in, using some of the techniques of direct marketing.

So… if you are facing the uncertainties of cash flow that goes up and down and up and down, let me show you some ways to even things out.

First of all, let’s put the term “recurring revenue” back where it belongs: in the Accounting Department. It’s a great thing, to be sure. But it’s kind of an abstract term and, unless you are a financial professional, doesn’t have much to do with how you run your business.

Let’s use a simpler phrase that’s much more real to you:

“Repeat business from the same customers.”

And let’s start at square one. With something really simple.

If you can come up with a way to get a customer to buy from you a second time, you’ve already evened out your cash flow a little bit.

And if you can get them to buy a third time, you’re doing better still.

The problem most businesses have is they try to “lock in” customers with subscriptions, where customers don’t necessarily want to add another monthly bill to their already strained budgets.

And that’s understandable.

I’m not against setting up a subscription product or service—like a membership site, or a monthly newsletter, or a retainer arrangement, or a box of treats for people’s dogs every month.

If you can come up with something like that for your business, and it works for your customers, great.

The problem I see here is that many entrepreneurs think that’s their only choice for getting recurring revenue. And while it’s a good one in some cases, focusing too hard on becoming another monthly charge on your customer’s Visa bill can backfire on you.

Step back for just a second with me.

The idea is giving people reasons to buy more from you. In any number of different ways.

A system (like a subscription business) is great, if you can make it work.

Here’s what’s even better:

An attitude.

The attitude that lets your customers know you care about them.

Which, by itself, makes them WANT to buy more from you.

On their own.

Amazon.com is a master of this attitude and this practice. And so are lots of much smaller businesses who create a bond with their customers. So the customers come back, again and again and again.

Gladly. Voluntarily. Regularly.

So, how do you do this?

By making lots of new offers to your customers. Offers that they like. (Based on what they’ve bought before.)

By selling them things where they decide they got a really great deal from you.

By offering surprise gifts.

By sharing ideas with your customers that they can turn into:

  • Happiness
  • Satisfaction
  • Solutions to problems they haven’t been able to solve before
  • An insight that improves their lives
  • A new way to make money, or save money, or save time, or do something they’re already doing: more easily, more enjoyably, with greater satisfaction, or with greater meaning.

By creating value, not as a cold, calculating move–but as a matter of daily practice. Out of an intention to help your customers at least as much as you help yourself.

By making that the culture of your business.

I have clients that do this all the time for their customers.

And I’ve worked hard to put this attitude into action myself.

It pays off. I have lots of clients who buy additional services from me, not because I ask them to, but because they see the value, and decide to buy more ON THEIR OWN.

One of my mentoring clients hired me four times over the course of 10 years. Now he has a multimillion-dollar product and service business. I know a number of people who have bought from him multiple times.

Why?

They rave to me about the value he provides.

Creating value is actually somewhat of a mystical art. It’s like the medieval definition of alchemy: turning lead into gold.

Except, it’s discovering how to create value out of thin air. A certain way of thinking that puts the customer first, and silently invites the customer to buy… again, and again, and again.

Think about the businesses you keep buying from, even though you don’t have to.

Rather, because you WANT to.

What are they doing?

Could you do something similar in your business, for your customers?

Do so, and wave “bye-bye” to the “feast-or-famine” cycle.

If you’d like help figuring out what that is and how to do it in your own business, let me know. That’s one of the things I do for my clients every day.

Business owner mentoring

Consultations and critique sessions

By | 2017-04-13T09:13:11-04:00 October 5th, 2016|Uncategorized|2 Comments

About the Author:

2 Comments

  1. Ric Thompson (Done For You Solutions) October 12, 2016 at 1:55 pm - Reply

    Brilliant article David! There’s a number of takeaways from this people can put into action. And it’s far easier to put into action than most people think.

    • david2016 October 13, 2016 at 7:28 pm - Reply

      Thanks, Ric.

      And you’re right. It’s easy. The only stumbling block is too small a view of how to do things.

      Once you become flexible in looking at different ways to get the same result (more biz from old customers), the possibilities just about multiply, right before your eyes!

  2. Brendanvax April 16, 2019 at 10:25 am - Reply
    Your comment is awaiting moderation.

    Nicely put. Regards.
    http://viagrapego.com/
    medicare and viagra
    viagra for women
    tips on using viagra
    viagra 100mg

  3. Brendanvax April 16, 2019 at 2:15 pm - Reply
    Your comment is awaiting moderation.

    You said it adequately..
    http://viagrawithoutadoctormsn.com/
    sexual performance with viagra generic viagra 100mg microsoft and viagra buy generic viagra
    viagra pattent
    bendungan hilir viagra
    viagra bcbs
    re viagra
    viagra sex porn
    buy cheap viagra online now

  4. Brendanvax April 16, 2019 at 4:12 pm - Reply
  5. Brendanvax April 16, 2019 at 6:46 pm - Reply
  6. Brendanvax April 16, 2019 at 7:09 pm - Reply
  7. Brendanvax April 16, 2019 at 8:03 pm - Reply
  8. Brendanvax April 16, 2019 at 8:04 pm - Reply
  9. KennethFub April 17, 2019 at 12:01 am - Reply
  10. KennethFub April 17, 2019 at 12:10 am - Reply
    Your comment is awaiting moderation.

    Good data. Thanks.
    http://viagrapego.com/
    diabetes medication and viagra buy viagra macular degeneration caused by viagra buy generic viagra
    viagra and cialis and
    new york cialis soft about viagra
    differences in levitra viagra
    does boots sell viagra
    via viagra guys
    viagra sex pictures

  11. KennethFub April 17, 2019 at 12:43 am - Reply
  12. KennethFub April 17, 2019 at 1:07 am - Reply
  13. KennethFub April 17, 2019 at 3:18 am - Reply
  14. KennethFub April 17, 2019 at 4:06 am - Reply
    Your comment is awaiting moderation.

    With thanks, Helpful information!
    http://viagrapego.com/
    herbal substitute viagra viagra online discounted viagra phentermine weight loss viagra for women
    virus took over email aol viagra
    viagra falls play
    how to make viagra work faster
    young adults viagra
    pros and cons viagra
    blues song on viagra commercial

  15. KennethFub April 17, 2019 at 4:58 am - Reply
    Your comment is awaiting moderation.

    You actually expressed that terrifically.
    http://viagrapego.com/
    net doctor group viagra generic viagra 100mg how does viagra help pe viagra online
    best buy for viagra
    viagra 50m
    viagra diarrhea
    is viagra better
    viagra for men
    sample viagra

  16. KennethFub April 17, 2019 at 8:10 am - Reply
  17. KennethFub April 17, 2019 at 8:11 am - Reply
    Your comment is awaiting moderation.

    You said it perfectly..
    http://viagrawithoutadoctormsn.com/
    cheap viagra cialis levitra viagra generic discount viagra cialis levitra online canada viagra for sale uk
    altro che viagra
    india viagra cialis vicodin
    file name of viagra virus
    viagra napewno mi zagra
    viagra and general motors
    how often can viagra be used

  18. KennethFub April 17, 2019 at 9:28 am - Reply
    Your comment is awaiting moderation.

    This is nicely put! .
    http://viagrapego.com/
    washington post viagra aphganistan viagra generic why is viagra legal in mexico viagra for sale uk
    viagra online pharmacies
    viagra banned commercial
    kamagra viagra sildenafil site ebaycouk
    link watermelon and viagra
    viagra problems
    viagra face flushes

  19. KennethFub April 17, 2019 at 10:17 am - Reply
  20. KennethFub April 17, 2019 at 11:10 am - Reply
    Your comment is awaiting moderation.

    Truly plenty of valuable facts.
    http://viagrawithoutadoctorsntx.com/
    viagra approved in us viagra pills online prescriptions without prescriptions viagra viagra pills
    viagra generic form
    new findings on viagra type products
    duct tape instad of viagra
    acheter viagra
    paroxetine viagra
    buy generic viagra img

  21. KennethFub April 17, 2019 at 12:20 pm - Reply
  22. KennethFub April 17, 2019 at 2:28 pm - Reply
    Your comment is awaiting moderation.

    Great forum posts. Kudos.
    http://viagrapego.com/
    name viagra buy viagra viagra related to hair growth viagra generic
    viagra today for women
    staggered viagra doses
    viagra prescrition online
    viagra order
    generic viagra from canada
    mecican viagra

  23. KennethFub April 17, 2019 at 2:29 pm - Reply
    Your comment is awaiting moderation.

    Seriously quite a lot of helpful knowledge.
    http://viagrawithoutadoctorsntx.com/
    tips on using viagra viagra without a doctor prescription viagra for women on anti-depressants cheap viagra
    viagra urine analysis
    get caught ordering viagra online
    can i chew viagra
    buying cheap viagra
    viagra memory
    buy generic viagra img

  24. KennethFub April 17, 2019 at 4:39 pm - Reply
    Your comment is awaiting moderation.

    Great stuff. Thanks a lot.
    http://viagrapego.com/
    viagra pharmaceutical company viagra online new york cialis soft about viagra buy viagra
    where buy viagra
    viagra cialis bu safe paypal
    cialis pharmacy rx viagra
    group singing viva viagra video
    viagra hernia
    cialis viagra or levitra best

  25. KennethFub April 17, 2019 at 5:34 pm - Reply
    Your comment is awaiting moderation.

    Wonderful forum posts. Appreciate it!
    http://viagrawithoutadoctormsn.com/
    viagra cialas levitra comparison generic viagra medicare viagra generic viagra 100mg
    viagra brisbane
    viagra samples videos
    over counter viagra sales
    compare natural alternative to viagra
    joke viagra
    viagra website reveiws

  26. KennethFub April 17, 2019 at 7:57 pm - Reply
    Your comment is awaiting moderation.

    You reported that exceptionally well.
    http://viagrapego.com/
    chemist gibraltar no-risk viagra cheap viagra viagra shipped overnight generic viagra online
    order viagra overnight shipping
    discount viagra uk
    cheapest viagra uk cheap
    floater eye problems and viagra
    viagra buy in canada
    viagra and child conception

  27. KennethFub April 17, 2019 at 8:57 pm - Reply
    Your comment is awaiting moderation.

    Incredible tons of valuable tips!
    http://viagrawithoutadoctorsntx.com/
    wikipedia female viagra buy viagra viagra and the subliminal message buy generic viagra
    best generic viagra prices
    cvs viagra price
    viva viagra lyrics
    can i just take one viagra
    viagra equivalent herbal tablets
    where to get viagra forum

  28. KennethFub April 17, 2019 at 10:20 pm - Reply
    Your comment is awaiting moderation.

    Terrific data, Kudos!
    http://viagrawithoutadoctormsn.com/
    subaction showcomments viagra optional posted viagra for women viagra and generic sildenafil citrate silagra viagra generic
    maryland kamagra about viagra
    buying viagra in holland
    generic list new site viagra
    viagra being a controlled substance
    viagra and high blood pressure
    viagra for teenren

  29. KennethFub April 17, 2019 at 11:12 pm - Reply
    Your comment is awaiting moderation.

    You actually mentioned this superbly.
    http://viagrapego.com/
    philadelphia urology viagra viagra without a doctors prescription what is viagra used for gt generic viagra
    pfizer viagra generic
    viagra diary joke
    viagra medicinal
    mail order viagra uk
    pumpkin pie vs viagra
    viva viagra music

  30. KennethFub April 18, 2019 at 12:09 am - Reply
    Your comment is awaiting moderation.

    You stated that perfectly.
    http://viagrapego.com/
    veterans administrations formulary viagra buy viagra online can you multipule erections with viagra viagra without a doctor prescription
    reasons why viagra would be ineffective
    blue order pill viagra
    generic viagra wholesale 100mg
    viagra is a trademark of who
    viagra lung problems
    generica viagra

Leave A Comment