How to Build a Recurring Revenue Model With Memberships & Subscriptions

As per Subscription Economy Index report the subscription economy has grown by 435% in the last decade. 

While Netflix controls streaming and Amazon Prime reshapes shopping, creators and influencers are quietly cashing in too, charging monthly fees for everything from fitness plans to mastermind groups.

The recurring revenue model has shifted from a “nice-to-have” to a non-negotiable strategy for sustainable growth. Why? 

Because while one-time sales fade, subscriptions keep revenue flowing like clockwork. 

But here’s the catch: 63% of consumers now prefer subscriptions over one-time purchases. If you’re still relying on erratic paydays or scattered sales, you’re leaving money  and loyal fans—on the table.

In the next paragraphs, you will learn more about the recurring revenue model, how to build it with memberships and subscriptions and turn followers into paying members and stress into predictable income.

What Is A Recurring Revenue Model?

A recurring revenue model is a business strategy where customers pay regularly, by regularly means they pay monthly, quarterly or annually for ongoing products, services or communities. Unlike traditional one-time purchases like buying an online course or a software license, this model prioritizes long-term relationships, ensuring predictable income and stronger customer loyalty.

Why Creators & Entrepreneurs Love the Recurring Revenue Model

If you’re tired of chasing one-off sales or inconsistent paychecks, a recurring revenue model could be your game-changer. Whether you’re a course creator, coach, or influencer—this model helps you turn your skills into steady, scalable income.

1. Predictable Income = Peace of Mind

Say goodbye to the feast-or-famine cycle. 72% of creators using subscriptions report steady monthly cash flow—making it easier to plan, invest, and grow without stressing over sudden drops in income.

🚀 2. Scale Without Burnout

You put in the work once—then get paid on repeat. A $19/month course or community, once launched, can keep earning while you sleep. Automations handle content delivery, renewals, and upsells so you can focus on what you do best: creating.

💡 Stat: Businesses with recurring models grow 3x faster than traditional ones.

🤝 3. Build Stronger Relationships

Your members aren’t just customers—they’re part of your tribe. Through forums, live Q&As, challenges, and group chats, you create daily interactions that boost retention 5x higher than one-time buyers.

💸 4. Unlock More Revenue Per Member

Tiered membership models (Free → Premium → VIP) let you serve more people at different price points—without extra marketing. It’s easier to turn a $19/month subscriber into a $49/month VIP than to find a brand-new customer.

Types of Recurring Revenue Models (With Examples)

Businesses today use a variety of models to ensure predictable income streams, each one serving different audiences, industries, and goals. Let’s explore the most effective recurring revenue models, along with examples of people actually using them. 

Membership Model

Some websites charge users a recurring fee—monthly or yearly—to become members and unlock exclusive access to content, services, or private communities.

Here’s a brilliant example of a site built on a membership revenue model.

The SCHOOL OF SWEETGEORGIA is a paid membership community and course platform built with BuddyBoss Web and BuddyBoss App.

It is a community space for textile artists to learn, apply their learning and grow altogether. They offer monthly and yearly membership plans that range from $24 to $247 to let members access video courses, workshops, community forums, feedback from instructors and much more. 

Sites That Sell Content Subscriptions

Other websites focus on selling subscription-based content. This means users pay regularly to access digital resources like online courses, downloadable templates, videos, and more; often delivered in a time-released format.

Powered by BuddyBoss Web & App, The TalkBox is a great example of subscription content. It helps you teach your kids and even family a foreign language in just 7 minutes. Their subscription content includes language guides, language practice planner, language travel guide, etc from as little as $10 to $37. 

Hybrid Models

The hybrid model combines one-time purchases with ongoing subscriptions. It’s perfect for creators and businesses who want both upfront cash and steady monthly income. 

You might sell a course, a product, or a membership—and then offer extra value through a recurring service or community access.

Real-World Example: Peloton

Peloton nails the hybrid model. They sell high-end fitness equipment (like bikes and treadmills), but their real magic lies in the monthly subscription for live and on-demand fitness classes. 

This combo lets them earn once from the product—and again and again from users who stay for the experience.

In fact, Peloton now earns a huge chunk of its profits from subscriptions alone, proving how powerful the hybrid model can be. Members stick around for personalized classes, expert coaching, and a connected community—all for a monthly fee.

How BuddyBoss Helps You Build A Recurring Revenue Model

BuddyBoss acts as your command center for memberships, courses, and community interaction, eliminating the need to juggle separate plugins and dashboards 

Social Features: Turn Members into Superfans

BuddyBoss’s community features keep users hooked, reducing churn and boosting loyalty.

Forums & Activity Feeds

Daily Engagement: Members post wins, ask questions, and share resources.

Private Groups

Exclusive Spaces: Charge $49/month for VIP masterminds or niche topic groups.

Step-by-Step: Building a Recurring Revenue Model with BuddyBoss

Step 1: Define Your Membership Tiers

The foundation of any recurring revenue model lies in creating distinct membership levels that offer surge value. As BuddyBoss integrates with plugins like MemberPress and Paid Membership Pro, it allows you to spin up unlimited Free, Premium, and VIP tiers without touching code.

For instance, your Free Tier might unlock basic forums and three sample course modules, giving members a taste of your platform.

Next, a $19/month Premium Tier could grant exclusive access to monthly webinars, downloadable templates, and live Q&A sessions.

Finally, your $49/month VIP Tier can include personalized 1:1 coaching, early registration to events, and entry into an exclusive mastermind group.

If you prefer even more flexibility, hybrid membership approaches—combining freemium access with à‑la‑carte add‑ons—help capture both casual users and power members. 

Step 2: Monetize Content & Community

Now that you have tiers in place, it is time to convert your expertise and community into revenue. To do that, integrate your BuddyBoss platform with LearnDash and empower yourself with launch drip‑fed courses. 

You could launch a $299/year “Digital Marketing Mastery” program that unlocks each module only after completion of the last—keeping learners engaged over months, not minutes 

For live events, BuddyBoss’s Zoom integration lets you host $49 one‑off or recurring webinars (e.g., “AI for Creators”) with automated registration syncing and reminders 

Hey but don’t overlook private groups: charging $15/month for a niche “Content Creators Mastermind” cultivates peer support and accountability, driving high retention in a focused cohort.

Step 3: Automate Payments & Retention

Forget about chasing payments every month, once you connect BuddyBoss with WooCommerce Subscriptions it handles everything for you. Also, thanks to Uncanny Automator, you can set up automatic billing monthly, yearly and even offer free trials. 

Retention Tactics:

To keep members hooked, layer on gamification: award badges like “Top Contributor” for forum participation, and display leaderboards that reward streaks and milestones. 

Pair this with the BuddyBoss mobile app’s push notifications, nudges like “Your new lesson is live!”—to bring inactive members back and slash churn rates. 

Here’s a bonus you’ll love—BuddyBoss gives you a fully branded mobile app along with your website. That means your members can stay connected, even when they’re on the go.

You can send push notifications like:
📲 “Your new lesson is live!”
🏅 “You just earned a badge!”

These simple reminders help bring members back, boost engagement, and reduce cancellations.

Plus, having your own app makes your brand look more professional and trustworthy, which keeps members coming back for more.

When you combine automation with the mobile app, your membership site runs smoothly—and keeps growing 24/7.

Essential Tools For BuddyBoss‑Powered Revenue

Here’s a richer, more engaging take on the three must‑have add‑ons that will turbocharge your BuddyBoss revenue engine:

MemberPress: Lock, Drip & Delight

WooCommerce Memberships: More Than Just Digital Access

Google Analytics: Data‑Driven Growth on Autopilot

Best Practices To Avoid Pitfalls While Building A Recurring Revenue Model 

Stay Compliant Without the Headache

As your membership site grows, so do your responsibilities. Tools like Termly help you stay on the right side of privacy laws by auto-generating GDPR and CCPA-compliant privacy policies, cookie consent banners, and data request workflows—no legal team required.

Deliver Value, Don’t Overwhelm

Avoid the content dump. Instead, drip your content over time—like releasing a new course module every week. This keeps members engaged, prevents burnout, and increases the perceived value of ongoing subscriptions.

Create Feedback Loops That Fuel Retention

Turn your community into your co-creators. Use BuddyBoss forums and polls to ask, “What would you love to see next?” Not only does this spark engagement, but it also gives you direct insights into what will keep your audience sticking around month after month.

Challenges For Creators & Influencers

Creators and influencers face real challenges—algorithm shifts, limited control, and revenue uncertainty to name a few. Let’s understand these challenges one by one so we can discuss its solution later.

#1 Problem: Churn

5–7% of members leave monthly; often due to boredom, lack of value, or forgotten subscriptions.

Real Impact: Losing 7% of a 500-member community means 35 fewer paying users every month.

#2 Problem: Content Fatigue

Members lose interest if content feels stale or overwhelming. Example: Dumping 50 course modules at once.

#3 Problem: Payment Compliance

68% of users abandon sites with unclear data practices. GDPR/CCPA fines can hit €20M or $7,500 per violation.

Takeaways

A successful recurring revenue model comes down to three things—automation, community, and delivering real value. And with BuddyBoss, you get everything you need to make that happen in one powerful platform.

Whether you’re selling courses, memberships, or coaching programs, BuddyBoss helps you save time, grow your income, and keep your members coming back for more.

Ready to build your own steady income stream?

👉 Explore BuddyBoss today with confidence—backed by a 14-day money-back guarantee.

💼 Join 25,000+ creators turning their content into full-time businesses.

Author Asha Kumari