This Is The Verbatim Video Transcription Of A Private Training Session
                                                   
                                                
                                
                        
In this video, we're gonna talk about how to create recurring income and the keys to automatically originating monthly cash online. As soon as you could start creating products and services that you can build monthly, you should start doing it. I mean, don't put this off. I wish that I would have started creating recurring income streams from my very first day that I decided to be an internet marketer because there is a, there's just a sense of security in creating income that automatically appears every
    
Every single month. And you can set up a system to take care of this for you, but you've got to do it all in advance. And there are a lot of different models. There are two basic frames of thought when it comes to doing this, and we're going to talk about that in a minute. But make no mistake about it, this is one of the most profitable and one of, one of the best things you could do in your business as an internet marketer. It doesn't have to be the only thing you do. There are many different ways that you can just put a recurring income stream into perhaps an already existing business model or an already existing income stream, maybe add an additional service or maybe add, uh, you know, some, something that embellishes the product that you're already creating or releasing or that you've already put out, but you bill for on a monthly basis, OK? 


And you might not think that some of the things you can bill for are billable, but they are, and I'm gonna, I'm gonna expand on that a little bit here in a minute.Always start with the end of mind. Melinda and I have done this now several times, OK? And the key here is to really think about what you want to release over the course of the next year. So you don't want to do this on a month to month basis, especially if you're creating content monthly. That is a recipe for disaster because God forbid you fall behind.
   
And you can't go and, and you, you know, you didn't finish next month's content and now the billing kicks in, you're gonna have a lot of refunds on your hand. And as you know, a lot of refunds on the same day, put your PayPal account in question or your merchant account in question, and you could essentially lose your merchant account or your, your payment processing capability, which endangers your entire business. So you, you really need to plan this out. You wanna, you know, remove yourself from the delivery equation altogether if you can. So, you want to create things that you don't necessarily have to show up to fulfill. 


Now, if they're manageable, I can understand that perhaps showing up to fulfill them. For example, I do one where it's a weekly webinar, right? And the webinar is actually when I recorded this video that you're watching right now. So I create content on these calls and I dual purpose the content and I've been doing it for a long time and I actually charge people a, I give people an option of paying me monthly or of paying me a one-time fee for lifetime access to these webinars. So that's a model that's worked very, very well for me. And let me tell you, like I said earlier, there is no better feeling than waking up on the first of the month or on the day of the month that your rebill hits your account and knowing that there's already 40,000 or $50,000.
    
In automatic income that's already been put in there, kind of gives you this sense of security and serenity about your business and about your life. Um, you wanna make sure that you create systems that are easy to automate. I've seen people make mistakes when creating continuity products, and they create things that are just, they, they require physical management. You know, when you're creating some sort of a product, for example, that requires fulfillment, let's say a $1 shave club, right? So the dollar shave model is you pay them, you know, you subscribe to their service and you pay them whatever it is, $9 or $10 or whatever, uh, and, and they send you these, these, uh, razors to your house, right? 


Now, the reason that this is actually a good idea and it works well for them is because this is a consumable, highly consumable item that men and women shop for all the time. So when you do it a certain amount of times and the blade gets dull, you have to change a blade. Eventually, you have to buy more blades. So this is something that people buy. It's one of the items on the grocery list. I think one of the most consumable items that people need, uh, that comes to mind is toilet paper, right? Imagine having a toilet paper service. You're, you're gonna have people are always gonna need toilet paper, right? So this is the kind of mentality that you have, when I say start with the end in mind.
    
Thinking of things that people are going to need and need over and over again and things that are going to be easily, easily delivered. Now, in the case of those physical items like toilet paper or, or any kind of toiletries, razor blades or something like that, yeah, they're consumables. They're things that people need all the time, but they also keep you in the equation. They're tough to automate without some sort of a fulfillment service, not to say that there aren't already fulfillment services out there. But you want to create a digital business, right? You, you want to create something.
    
That, hey, I, I, man, if I could just make money selling links for the rest of my life, that'd be awesome. That's all that I would do. Now, imagine if you could create one link and have people pay you for it over and over and over again every single month. That's even better, right? So you want to create things that are easy to automate and easy to scale. So I've also seen that mistake made a lot of times. And, and what, what, what I mean by that is you create a, a, a business or a process where you can't grow it once it's.
 starts doing well because perhaps what you're selling on a monthly basis is your own creative work. 


So maybe you're selling paintings, you're selling something that you yourself, it, that's what they buy. They're buying the new monthly, uh, um, you know, paintings that you're making. And it's that signature on the painting. It's that, it's that original work that you're, well, now imagine this. Imagine that all of a sudden you had to, you know, you wanted to relaunch that or you wanted to expand that business or you wanted to grow it. Eventually, you are going to reach a limit to your capability of fulfillment because you, in essence, are the artist. You in essence are the product. So even though that might be very valuable if you're very talented as an artist, and it might be profitable, it's not scalable. And that might not be the very best example of an unscalable model of recurring income, but trust me when I say, this is something that you want to look into carefully and start with in mind. 


So you don't get yourself jammed up in a situation where now you have 1000 members that their billing is gonna automatically hit. Remember, with, with recurring billing, it's not like they're getting a notice at the end of the month or the day before billing says, hey, by the way, you're about to be billed again tomorrow and let us know if you still want to be, no, that money is automatically, they have authorized on the date of purchase, they authorize for you to continue taking that money out of that account for the duration of them being a member. So that means that if you want to be, uh, you, you know, if you want to be in good standing with these people and you want to have this material, you want to continue having these customers, then it's important that you are able, that you make a commitment that, you know, you, you don't make a commitment that you can't fulfill, is, is what I'm trying to say. 


OK. So with that said, what do I sell and how do I deliver it? So, I mean, technically.
What do I make and what do I deliver? So how, how does this process kind of take place? Well, let's start with the, with the, you know, types of things to sell. And the, the, the two different frames of mind. Now, you, you might come up with variations of these, Essentially, they come down to two things, right? So there's two frames of thought with continuity and that's how we refer to recurring billing.


Items continuity building, recurring billing, those are interchangeable vernacular within the industry. But essentially, you can create 12 pieces of content that you set out to drip monthly. When I say drip, I mean like an eyedropper every single month, squeezing one drop out. You could create an automatic system that squeezes that eyedropper and lets a drop drip out every month. So consider your pieces of content, your pieces of material like the drops in the eyedropper.


And you've pre-created or pre-filled that eyedropper with a certain amount of material. I advise that you start with 12 months' worth, OK? So don't release your product until you have at least 12 months, trust me, take it from experience. You might say, oh my God, Omar's crazy as long as I have one or two months' worth of content, I can create the content. You're creating work for yourself. The money you make, it comes in continuously, but the key here is to be able to create, you know, spend next month creating another income stream rather than fulfilling the last one. OK?


So you can set this out to drip monthly and you can use technology. We'll talk about how to use that technology and what technology specifically to drip these things out automatically to your people. But you're eventually gonna come to a position where, you know, you're gonna have to create more pieces. Now, there's attrition factors that come into play. The majority of your people, by the time 12 months comes around, they'll all be either gone or canceled. Most of their credit cards have either expired and the rebuild is failing now, or they've canceled depending on the digital attrition that you have for your particular platform, for your particular product, uh, and different platforms have different attrition rates, and we're talking, we're gonna talk a little bit about attrition and explain what that is in a future slide. But my point is that the determining factor of how far out you should look into that future. 


So when I say to you, you know, start with the end in mind, well, you know, you might say, well, Omar, if this is a perpetual billing cycle, there really is. And that's the nature of something being perpetual. Well, yeah, that's right, but we have to create a certain amount. We have to set ourselves a threshold and say, OK, well, once we've created this amount of content, we're good to launch. I advise that that amount of content is at least 12 months because, and, and then what I recommend is that some, somewhere in the 1st 6 months of that redemption cycle, I recommend that you create the next 12 months. That is, if it is in fact a perpetual type of uh uh uh a service that you're offering or a perpetual type of membership that you're offering where the content is new, is fresh, and your attrition percentage is low. 


So if you're gonna have, you're gonna, if you're gonna have high retention where you're still gonna have a lot of the same members inside of your membership site a year from now that you did on day one, then I recommend that you have a minimum of 12 months of content. For some people, they have no need. But to do 12 pieces because their attrition is their, their attrition is back at 100% by 6 months. So they're never, you know, in all likelihood, no one ever even makes it to the 7th month. But if you have a high percentage that's going all the way to the end, or that's actually surpassing the 12 months, well, you've got a, you've got a year to come up with another year's worth of content is what I'm saying here, OK? 
Now, what's the second frame of thought? Well, this is the type of, of, of income where you generate it by simply allowing access to a protected area so that a member can use the tools that it contains. So this doesn't require you to continuously be dripping pieces, but rather to just make material or software or something available. A good example of this would be a gym membership, right? So, a gym membership, you pay monthly.
    
To be a member of that gym and to have access to the facility. But it's not like they're adding new machines or new things every, you know, some gyms offer certain classes and they have different things. But there's a, there's a finite amount of stuff there and you admit, you agree to just paying monthly to access it whenever you want. Well, not necessarily whenever you want, whenever they're open, right? Because that's another thing. Um, however, these are the two differences and by comparison.
    
It makes a lot of sense to create the type of products where you can just allow access to a protected area. Sure, you can, you know, continue to uh inject value into that members area, you know, update. So if you did own a gym, offer new classes, bring in new trainers, uh, add new equipment, expand the facility. Keep, you know, you can do things to make sure that people stay happy and they see value and that they, you know, but ultimately, it really comes down to selecting one of these two business models. Now there are variations, there are a little, a little bit different that actually even some of them even combine this, but essentially, it falls under these two categories. 


Now, there's a lot of tools. We could make this entire presentation all about the different tools there are in order for you to put this together. Tools that you can use to automatically reveal the pre-created concept. That should say pre-created.Uh, not recreated. So you've created the content in advance and now you can build them monthly, and then after, after every billing cycle hits, you reveal that, that piece of content that was hidden. So, ideally, this is the safest way for you to do this, and that is to create 12 months of content and put technology in place that reveals month one right when they have paid for month one rebill well, obviously, when the day that they buy into the service, they should get month one worth of content. But then after 30 days, it automatically reveals the next piece of content. 


So the content is there. It's just hidden to the user until 30 days has elapsed, or 60 days has elapsed, or 90 days or whatever month they're on. So theoretically speaking, not theoretically, I mean, practically speaking, you will be able to have people that are on month one while other people are on month 3 or on month 4. As a matter of fact, I think.
Encourage it. I encourage that you continue to attract your, your systems that you put in place should be magnetic. You should be continuing to attract new people. Um, you should, you should strive to retain the people that you have, and you should continuously strive to attract new people that will be replacing the ones that you lost. It is unrealistic to presume that if you sold 1000 memberships, that 1000 people are gonna pay you.
    
Every single month for 12 months. That's just not gonna happen. From the moment that you sell those 1000 memberships, that number begins to decrease. Every month, the rebuild will be lower and lower and lower till it just disappears completely. Now, the amount of time that that takes to happen is what we call attrition, and the percentage of the decline actually is that, that should be a better way for me to explain it. The percentage of the decline uh in, in the members and the number of people that you have active is what we call attrition, and that is, um, there's a formula to figure that out. I'm not going to go over the formula because it's math and I'm not good at math and I'll probably screw it up and I'll confuse you for life, and I don't want that to happen. But if you just Google attrition formula, you will be able to figure this out on your own, and it applies differently. 


It's usually used, attrition, frankly, is a term that's derived from human resources. It's usually a way to um calculate how many people you need to hire in order to fill the void of people you're losing. So what's the current headcount versus the, you know, uh, the people that are, uh, that, that, that started the month and that, that quit along the way. So there's a formula there, we'll talk a little bit about it in a minute here, but, um, there are, there's technology now that you can use that will automatically reveal the material that you created to your members. 


One of the ones that we use is called Wish List members. So, wishlist members are actually a membership plug-in that I use inside of my WordPress sites, and it allows me to create protected areas for members. And then it also allows me to create multiple levels for different types of members that have paid me different amounts of money. So I might have a silver membership, a gold membership, and a platinum membership. It might cost $10 to join my silver, $20 to join my gold, and $30 to join my platinum. I can create a different membership page.
 
For each one of those people, and only the gold people that paid me the $30 or the $20 whatever the gold price is, $20 they will only see that material. Basic members are the silver members that only paid $10 they won't see gold material when they're logged in. So this is what a membership site plug-in or a membership site script or software enables you to do on your site. It also enables you to do uh automatic registration of members and creation of passwords so that each person has a unique login to their material, because naturally, if you charge somebody money, but then you take them to a page that is unprotected and they don't they don't need to enter in a unique password. Essentially what you're really selling them is the password to access the material. And we have different passwords. We have one for gold, we have one for, you know what I mean? So, again, you have to have a protection mechanism in place. 


So, here's the cool thing with wishlist member. There's a feature where after a certain amount of time, you can move someone from one membership level to another membership level. So essentially, if I wanted to have a gold member, which was paying me monthly, maybe the price was actually $20 per month, and I promised to give them new material every single month. What I would do is I could actually create a membership level for each one of those months, so I could have gold month 1, gold month 2, gold month 3, gold month 4, and so on and so forth all the way to gold 12. And based on the sign up date of that user, what'll happen is Wishlist will automatically add them to the next level, which will then reveal the content that's protected under that level. So that's kind of the premise behind using Wish List member. 


Now, I personally don't think that that is the most practical way to do it because I think it's a pain in the ass to create an infinite amount of membership levels on your site. So there's actually another tool uh called Dr Nitrous that we use. And I, I will be, um, I will be talking to you a little bit about Drip Nitrous, but membership plug is like, like wishlist, they allow you to protect your content, they allow you to assign each user a unique a unique password for their account, and they do have a built-in system to drip, so to speak, but it's not really dripping, it's actually moving the member from level to level, month to month. 


Now, uh what I use is the drip nitrous plug-in, which is part of our, uh, we actually designed it. I was so unhappy with the way that Wishlist does this that I designed a uh plug-in of my own called Drip Nitrous, and it's part of the content nitrous um suite of products. And with drip nitrous,what I do is I encapsulate content. So I have a little code that I could, let's say there's an ebook or there's a link or there's something that you want to protect because you only want somebody that's been a member for 30 days to see that. Well, what I do is I put that content on my website, but I put a little code in front of the content and a little code behind the content. 


So what that happens is what happens there is it hides that content. But in that code, I have a number of days or a number of weeks or a number of months. And what'll happen is when the user logs in and goes to the page that contains that content, the, the, the drip nitrous plug-in, it checks when they became a member, and then it looks at the current dat and it says, OK, well, the present date minus the date that they became a member equals 30 days. So that means I can reveal the content that the shortcode is hiding. We can do that for 30 days, for 90 days. So essentially, on one page, you can hide 12 months' worth of material and the, the, the drip nitrous plug-in will simply reveal.
the material that they are, uh, that they've actually earned, that they've got the tenure to actually access. OK. 


So, that's the way drip nitrous works to reveal the content in comparison to Wishlist. And personally, I like the advantage of being able to drip based on date, uh, rather than based on level. So, now you know a little bit about the technology, you know a little bit about the different models. So how do we actually collect the money and how do we protect the money? Remember I mentioned you're gonna be losing people on a monthly basis. It's never gonna be, unless you're doing something to, to fill in the void, fill in the, you know, make up for the attrition, you're gonna need to find ways to protect your money and keep, keep people that's what we call retention. 


All right. So, JV Zoo, which is the preferred uh payment platform that we use, uh, JVZoo allows you to set a rebill amount. And an interval for every product you create at the tick of a box. So, when you create a new product inside of JV Zoo and it says, well, what would you like to charge for this product and you enter the money and then it says, would you like to make this a recurring amount? And if you tick yes, I would like to make it a recurring amount then it says, OK, what interval? How many days, how many, you know, how often do you want me to, to bill? And then it'll, you know, you could say every 30 days or every 2 weeks or whatever the amount is that you want to rebuild. And then it'll ask you, well, for how many times, how, how, you know, and I usually just put 999 because that's as far as it'll let me go. 


So there's gonna be 999 rebuilds, but frankly, there is a snowball's chance in hell that someone's gonna pay you 999 times. That would actually be 999 months. I don't even know how long that would take in years, but that's a lot of content to create. So anyway,
JVZoo allows you to do this. So technology for collecting the money is pretty easy and it's already included in JVZoo. Now, a lot of people choose, and even myself, I do have a backup system to my JVZoo. I do have a merchant account. And you can use a merchant account in conjunction with the payment gateway, OK. 


So, there are shopping carts out there where you can take your, a shopping cart is a service or a system. And a payment gateway, for example, is a company like Authorized.net, where they use technology that give you the- they use their platform, the payment gateway or shopping cart platform, allows you, affords you the technology to collect credit card information online in a secure way.
    And process people's payments and deliver that money, deposit that money into your merchant account. Your merchant account is simply a bank account, just an online bank account. It's not necessarily like one that you walk up to a teller.


I mean, I did have a merchant account that worked directly with my bank, with Bank of America. I advise you do not do that. I made a very big mistake and I learned something that I can only learn that way. Uh, but merchant accounts have all kinds of rules. You have to apply, you have to have a credit score. You have, it's a lot easier with a company like JVZoo or PayPal. But again, it comes with its compromises, OK? So when you go with JVZoo, I have to be honest, my attrition percentages have never been higher than when I started using JVZoo for rebuilding. So I've compensated in other ways. I've gotten better at uh retention. I've gotten better at decreasing attrition and, and magnetizing and bringing more, attracting more people.
But nonetheless, it's inarguable that with the current technology and the way that JVZoo works, the attrition percentage is much greater there than if you have your own merchant account in your billing in different ways. The problem, and you know, everything has its pros and its cons. JVZoo makes it really, really easy for you to launch products and attract a lot of affiliates and make a lot of money.
    


Merchant accounts make it very difficult for you to, you know, because you have to pay people manually. You have to keep track of your commissions manually. They don't get instantly paid out. It's not an automated process. So merchant accounts and doing, it's, it's kind of a, a more, I don't know if this is the right word to use, but a more primitive method of doing it, but it is in fact more secure when it comes to keeping the money. The reason is that you're storing the credit card information. Well, the payment gateway is in your, in, in your payment gateway account. So many vendors do prefer this, this over PayPal. The other reason is that there is a, um, you know, with JVZoo, JVZoo is directly connected to your PayPal account. So when you're processing through there, there's always a risk that you could lose your PayPal account. Uh, but then again, when you're processing through your own merchant account, there's a risk that you could do this. So there's risk both ways. 


The thing with a merchant account though is that when you're using a merchant account, you can do certain things that you just can't do with PayPal because PayPal is yet another, um another set of rules, right? So they're another layer of protection for the consumer. So you can fly a little faster and higher and looser with a merchant account than you can with PayPal. With PayPal, there's also a dispute system in place and a, and a refunding and reversal system in place that the
    The customer can go to and they can actually avoid your, your policy altogether and just go and deal with PayPal directly when they want to stop their, their rebuild or they want to do things. So again, it, it's, it's, it makes it pretty easy for the customer to cancel and this is one of the reasons why JBZ attrition is much higher than in a merchant account, OK? 


So, the other things that I wanted to talk about were attrition. I, I, I talked a little bit about it. A lot of people refer to this as stick rate. I don't know how that can, I guess maybe get people to stick like flypaper or what's the rate at which they stick at. We call it attrition, and it, it's, it's basically the percentage of people that'll drop off of your rebuild, not rebel cycle, because we know you're not a rebel. I'm talking about rebuild cycles and as you can tell by my poor grammar and spelling, anybody can be an internet marketer and make millions of dollars online. 


My point here is that your ability to keep people on your billing cycle is going to decrease over time. People simply are going to be harder to keep on the billing cycle. That is for various reasons. We're gonna talk about a few of them in a minute, but we call it attrition, and there's an attrition percentage. There's a formula that you could look up if you go to Google and you just Google the attrition formula. OK? 


Now, it behooves you. I love the word behooves. It behooves you to develop consumables and other magnetic products, products that attract people, products that people will have a painful disconnect if they all of a sudden have to stop paying for them. So, for example, I belong to a website where I pay monthly in order to create graphics, and those graphics and those images are stored on that website. When I, um, if I stop paying for that, not only do I lose the ability to create new graphics, but I lose all of those graphics that I've already created. What's another painful disconnect? Here's, I think, the best example that I can think of would be hosting.
    
So, you have a website or you have a series of websites that you've worked really hard on, and you've put them on your, your hosting account. And you are paying monthly for that hosting account. Now, when things get tough, that hosting account is probably one of the last things that you cut off because you don't want to lose all that work that you've done, right? So you're gonna find other ways to to, to, you know, other, other places to cut expenses, but there is a painful disconnect and disconnecting in turning off your
auto respond, not your auto responder, your hosting company, because you're gonna lose all of that, all of that hard work, all of those websites. They will cease to exist. You will, unless you download the websites and store them on your local computer, but they will no longer be online. So again, there's a painful connect, a painful disconnect that happens when people cancel their membership. And if you can come up with an idea where your service, your product,
    


Your membership comes with a painful disconnection when someone cancels, then you're going to tend to have a very, a good attrition percentage, right? So your rebuild cycle will tend to stay high because the majority of people want to keep the service because they don't want to suffer the consequence of losing out on the hard work that they've put in to store their material. Retention is the act of always striving to keep people paying you monthly. So, I think that a lot of people focus on retention, but they, their, their focus is a little misplaced. Retention is important, but it should not be the sole focus of your managing of the way that you manage your recurring income and your membership sites. 


Retention is important, and you should always add value, and you should always give people reason to, to keep coming back and to keep buying from you. But the key, the, the, the real key to keeping people and keeping your membership constantly packed and to keeping that rebuild money coming in is to constantly be attracting new people. Because no matter how much you work on retention, you will always have drop off. People will always drop off your rebuild cycle over time. I mean, especially with JVZoo and PayPal because when somebody, like, for example, let's say that I bought your product. I bought your product on JVZoo. And I used PayPal, but I entered my credit card information at the time of purchase, cause you know you can do that with PayPal. That is an option with PayPal. People can pay with their credit card using PayPal. Now, if I paid with my credit card using PayPal, but I paid for it 2 months before it expires, guess what's gonna happen 3 months from now?
    
The rebuild is gonna try to make that charge on that account, on that, um, you know, the rebuild cycle is gonna hit, and it's gonna try to charge a card that's now expired. So, the rebuild is gonna try 3 times. PayPal is gonna try, I think it's 3 times. Melinda knows the exact amount. Uh, but it's gonna try 3 times and it's gonna fail. It's gonna fail each one of those 3 times because you now have a new credit card. Well, you know what's gonna happen? PayPal is automatically gonna cancel that rebuilt account. After the 3rd failure. It's just gonna cancel it. It's not gonna put it on hold and send a message to the user and saying, update your billing information. It's not going to do anything of this, of this, of, of like at all to try to help you. Nothing of the sort. 


So you're gonna lose that user by nothing that you did wrong. As a matter of fact, it's very likely that that person is gonna lose their access and then wonder what the hell happened and create a support ticket at your help desk saying, hey, why did you shut off my account. And you're gonna say, I didn't shut it off, it's that your card didn't work. And then they're gonna say, oh yeah, I have a new card. Here's my new card number. And you're gonna have to say to them, sorry, you're gonna have to buy the product again. And they say, but why? I just want to keep paying you. And you're going to say, well, because I use JBZ on PayPal, and that's just the way that it works. The technologist just isn't in place right now for you to be able to update billing information if you use a credit card through PayPal to pay for a product, especially when it comes to your current billing, and that's what makes up a big percentage of the amount of people that are buying, right? 


Now, another possibility is that the funds, that the funding source for your PayPal account for the, for the user's PayPal account, doesn't have the money in there. So if that PayPal billing, if that, if that rebuild fails 3 times, guess what's gonna happen? that account again, terminated. These are things that don't happen with a merchant account, however, when you're using a gatemate, a gateway, that thing will keep billing that card to Infinity. And you could set up payment, payment gateways have options for you as the consumer, as the vendor that allow you to send notifications to people. They notify you.


Hey, this person's billing failed. Here's their account information. Contact them and try to get another card. And when you do get that other card, you can save that account by going and just adding the new account. Somebody can actually give you the account, their new card number by phone, and you can go and manually enter that into your payment gateway if you're using that method. Why? Because your gateway is actually storing the credit card numbers for the uh consumer for, you know, so it's a different way of managing payments. So, for me, I actually have both of these methods, but I predominantly use JVZoo, and I built, even my high ticket stuff. So even my like $3000 products and, and if it's, if it's a really high ticket package that I'm selling, like $10,000 package or a $32,000 package which we have, and we sell those, we sell.
    
A coaching where we fly people in and I sit down with them and I help them build their entire business, uh, get them kicking ass and making money, and we charge $32,000 for our highest package. And uh Melinda builds those, we do wire transfers, we do, uh, we use our merchant account, we do, there's different options for those sorts of billing, but when it comes to recurring,I gotta be honest, JV Zoo and PayPal, they are still my method of choice, but I do it knowing that the attrition percentage is going to be terrible and that I'm going to have to focus really hard on retention and replacement, so attracting new customers to take the place of the people that I lost last month. And this is important because if you don't do that, it'll just be a matter of time and for digital products, it could be anywhere between 3 to 6 months on average in my particular space where you're your, your continuity billing is pretty much down to 0. I'll give you a different example. We had a merchant account billing that we did, um, we started it.


I want to say 8 years ago, 8 years ago at the time that I recorded this, and to this day, 8 years, we're still making money off of it. Uh, not much. It's gone down from $30,000 a month of recurring income that we used to make. No, I'm sorry, it was much more than that. It was closer to $50,000 a month when initially we, we, we started. That was, we launched a product, we made 6 figures on the product launch, so we had an income spike of 6 figures and it had continuity attached to it. So every 30 days, we would make $50,000 but that started dropping from month one. And 8 years later, last month, it made us $30. So the money is still coming in with JVZoo and a PayPal model, you're, you're pretty freaking awesome if you got it coming in after 6 months, if you still got any money coming in. That's what we call attrition. 


So you've got a, what do most people do to make up for it? They do some sort of a relaunch of their product. They constantly keep driving traffic to it, Facebook ads, some sort of, uh, or they create another continuity product in the process. Uh, so this is the way that you make up for it. This is why I say when you create 12 months of content that's gonna be dripped. You're pretty safe when it comes to the attrition. But if you're, you're doing some sort of a perpetual billing cycle where you're creating just access for people, that ideally is the best way to go because you don't have to, there's no requirement for you to keep coming up with new uh material every single month.
    
Just know that people's, you know, people are gonna drop off every month, some of them because their card expires, some of them because they just require, they just asked to be canceled. You know what, you'd be amazed if you've never done recurring billing on any of your products. It's amazing the level of people that freak out. They, they buy a recurring product. They, they tick the box, they agree to the terms of use, they pay the money. And then it's like they forget. It's like they get amnesia 2 or 3 months. 


There's a small percentage of people that 2 months later, they'll send you a message hooting and hollering, Oh my God, you robbed me. You went into my account, you took the money out. No, I didn't. You signed up for this. I never ever agreed to that. What are you saying? What? Yes, you did. You, you get people like that. You get some nutters that just show up on your help desk. It's gonna happen. You will have cancellation requests, you will have card expirations, you will have attrition. So retention and is important, but ideally attraction. Nothing beats continuously attracting people to join your site. So, products versus services, what do I offer?
The key here, regardless of the direction that you want to get in, uh, that you decide to go in, is don't get trapped into a time for money exchange just for the prospect of steady money. Look, it's great to have steady money coming in, but don't create another job for yourself. That gets old quick, man. Trust me. You might say, well, Omar, you know, you're throwing all these big numbers out and I just wish I had an extra $2000 a month. Heck, if I had $2000 a month, I could quit my job. OK, great. So create a recurring income that has $2000 a month, but now, it takes you 50 hours a week or 40 hours a week just to fulfill the promise that gets you that $2000 a month. So all you've really done is replace the current job. And just like you got sick and tired of the current job, you're eventually going to get sick and tired of this one. For a little while, it's gonna be awesome that you're working from home and all that, but eventually, you're gonna get tired of doing this. 


You're gonna want to start doing new things. You're gonna want to expand. You're gonna want to start saying, well, maybe I want to do a different membership site now. Oh, but wait, I can't. Well, why can't I? Well, because you're spending 40 or 50 hours a week already fulfilling your last one. So you're gonna have to wait until the attrition kicks in for the entire thing in order to create a new one. So, you, you don't want to get trapped into that time for money exchange just because you're gonna get steady money. Instead, you wanna create methods that actually remove you out of the equation. 


Try to do stuff that you do the work once. So you build that gym once. You move all that gym equipment in there one time and then once you got it all set up, you hire somebody to manage it and show up and turn the key every day and that's it. You know, and, and that's the kind of thing that you want to create online for the best, best chance of you leveraging your time, right? So that's, and that really is the key, because you're eventually gonna, if you haven't realized this yet, you know, you can always make more money. You, you can't make more time. Time is your most valuable resource. I don't care what kind of financial struggle you're having right now, your time is always more valuable than your money, OK? 


Online software tools or what we like calling Software as a service. Sass. The SAS model is awesome. It's something that I've been getting into more and more and more. Uh, SAS tools are great because you create the software, you create the application, the user needs to log in to use it and they pay you to have access to it. The moment they stop paying you, they stop having access to it. Right? So there are online apps. There are mobile phone apps. 


I use an app that I pay for all the time. Uh, I pay for it monthly, and this app enables two-way communication with, with students and with uh other peers, right? So, uh, the moment that I stop paying for that, I lose that ability to communicate. Now, mind you, the, the software service company is doing stuff. It's not like they just made it and then
You know, started traveling the world. They gotta make sure that it stays online. They gotta make sure that it's up to date and that when the new, uh, the new phone comes out, that the, the app works on the new phone, they got to make sure that, you know, and if it's a, if it's an online application, whenever there's a, a Firefox update or a Google Chrome update or something like that, so they need to have, you know, maintenance of their tool, but it's still a great, great way to do business as opposed to having to do that time for money exchange. 


The product is created once. And the billing goes on and on and on and on and on. That's what I love about it. Now, here's another option I alluded to earlier, content on the fly. So content on the fly is what I do with my unfair advantage. This video that you're watching right now was created during a webinar for the My Unfair advantage group for the people that have actually paid me to be members of My unfair advantage. Now, with my unfair advantage, I have two billing options. And some people think that one of them is continuity, but it technically isn't. So what I do is I offer people the option of paying me $297.01 time to get lifetime access to all of these weekly training sessions where I record videos like the one you're watching right now and I actually perform them live and I answer people's questions right there on the call. These are great calls and it's content on the fly. I literally create this material live. 


Now to access it, people pay me 297, but I give them an option in case they can't pay the whole 297, maybe they don't have it available right now. I want to make sure that my unfair advantage is a product that's available to people that maybe only have a few bucks to spend for their online business. Because, frankly, it's important to me. The reason that it's important to me is because when I started my online business, I didn't have two pennies to rub together. So what I do is I create a payment plan option. Now, that's a completely different model. It's a third one that I didn't mention because it's not necessarily, it's not technically a recurring income stream because it has a finite date, but I can tell you this, attrition on a payment plan is much better than attrition on a, OK, 


So I'll give you an example.What I do is I give people an option. I can say you can pay me $297 to have access for life, or you could pay me $37 a month for 12 months. So you can make me 12 month easy monthly payments of $37 which actually are going to work out to $400 and something. Or if you want to just buy it outright, you're going to save a bunch of money by just paying me $297. So I'm giving them, I'm basically financing for them. I'm enabling them to pay me a little more. Over time, but to break down that $297 into a series of $37 payments. Now, as a penalty for not having that $297 they've got to pay me a little bit more. But the money they have to come up with right now is a lot less and more affordable. So I get a lot of customers that way. Here's the cool thing about that.
    
There's a painful disconnect when you stop paying. When you stop paying, you lose access to the website and you lose access to the calls. That's it, you're done. Now, imagine if you've paid, I don't know, 10 payments or if you paid 6 payments. So, 6 times 37, you've already paid whatever, $200 something dollars, right? You've paid $200 and something dollars, you're 6 months into this thing and you're thinking of canceling.
Now, you know that if you cancel, you're gonna lose, you're gonna lose access to the membership side because this wasn't a, you, you, you weren't paying for drip content or you're paying for access. You're paying for access to the place. Now, you, you were, you were paying for your, uh, you're paying over 12 months to have that lifetime access, but you still have not completed the payment for lifetime access. 


So, technically, I shouldn't have allowed you access until you completed, but in good faith, I gave you access right away, but you still have not earned your lifetime access. You see where I'm going with this? So what happens is, it's almost like you're paying for a car, right? You're making a monthly lease payment or a monthly finance payment. What happens if 6 months into it, you just stop paying? What do they do? Are they going to come back and repossess only part of the car because you've already made 6 months' worth of pay? No, they're gonna take the whole freaking car. And the money that you paid, that's lost. That's gone because you're making payment plans. You didn't have the money to buy the car outright. You financed it. So that's essentially another model here and that is a payment plan. 


So offering people the option of paying a lesser amount in full right now, or stretching out the payments over a 12-month period. And this I've found works really, really well. The attrition on that is much better than if I just say to somebody, Hey, pay me 30. I could say to somebody, look, pay me $17 a month forever to be a member of the MUA. And they're, they're gonna, that attrition is gonna be 63 to 6 months. But if I say to them, pay me $37 a month for just 12 months and then it stops completely and you have access forever. That all of a sudden just becomes much more enticing to them. So again, there's a lot of different combinations and models and things that you can do. 


But I can tell you this, our MUA rebuilt is pretty freaking awesome because we've got, it's $37 and here's the thing, and this is the reason why I'm sure you've seen me do a relaunch of MUA. I do it a couple times a year. Uh, my biggest one is usually on, um, Black Friday. So we run a 3 day special for my unfair advantage on Black Friday, and that's where you can get in for that $37 for that, that 12 month payment plan, right? So here's the cool thing about it.
That weekend, we usually make close to half a million dollars in sales. And we add anywhere from 2000 to 3000 people that are gonna be paying us $37 a month for the next 12 months.

And a good percentage of those people, I would say way more than half of those people end up staying all the way through for the full 12 months. Those are great numbers, and that was the method that I realized worked real well for, you know, compensating for that attrition issue. So when you ask me, well, Omar, you know, I think I, you know, how am I, how you compensating for the attrition? That's how I compensate with the attrition on JVZoo. I create financing options that extend, you know, over 12 months instead of saying just an, an eternal never ending, you know, $17 or $20 or $30 a month thing to Infinity. Uh, I, instead I just word it differently. I just, I just craft the offer differently and I make sure they understand.


 Look, we're gonna repo this car if you stop making your payments. You are making payments and you are not done. Paying those payments. You, you haven't paid off this lifetime access. You haven't paid it off yet. So the moment you stop paying, we stop, you know, we remove your access to the product, and that works really, really well. Here's the thing, I want to get back because I get off track. I want to get back to the live training or the concept on the fly thing. It's profitable and uh you can, you can have tuition that recurs monthly, but here's the thing, there's only so much of this that you can do. 


Content on the fly means you're creating it in real time, and eventually you are going to run out of time. You are going to reach a scaling limit unless you duplicate yourself and you hire someone else. And now you're, you know, you just doubled the amount of time, assuming that you can get as many people to buy into them as into you and that you're not the artist, you're not the brand. So the model with content on the fly is something that I do and I'm, I, from the day that I created my unfair advantage, um, this was a discussion that my wife and I had several times, and it was serious discussion and I, I asked myself, am I serious enough about this internet marketing thing to get myself every single Thursday to do a webinar and to be there for my people, whether 10 people show up or 100 people show up.
    
Every single Thursday, am I willing to commit that for the rest of my life and say I'm gonna give lifetime access? Am I willing to give that away? And in exchange for the type of money that I can make, the answer was yes. I love what I do so much. I love to teach and I'm so passionate about this particular subject matter that I have absolutely no problem talking about it every single Thursday night forever. And uh that was a decision that I made. And you know what? A lot of people argued. A lot of people said to me, that's not gonna happen. You're going to give up on that. Well, you know what, I gotta say that they're wrong because today, the day that we recorded this video was episode number 278, and that's a great source of pride for me and for my wife, that since 2010 April of 2010 was when we first launched this product and I still create every Thursday. 


So I've committed my Thursday, but when we talk about the amount of money that we make with my unfair advantage, it's in the millions of dollars. Between the launches that we do, between the, and here's the other thing, I use this as a way to force myself to create content that I can then bundle and package up to create other products. So it's, it's, it's, it's, it's great. I mean, it's a win, win, win. Everybody wins with this kind of a product and this kind of a billing cycle. So, um, you know, it's worked out really, really well for me. You could learn a lot, not just from the products that you buy from me, but from the way that you bought the products from me.
 
You can make digital products like PDFs, text documents, MP3 audio files, MP4s, JPEGs, mind maps, anything that can be digitally downloaded or converted into a digital format like an interview, a video, something that you recorded. You know, some people are really good with Photoshop and they can paint images. You can be good at photography, maybe you make music. Anything that you could digitally transfer on the web is something that you could originate and that you could create either on the fly, or that you could create on a monthly basis and add to the member's area. Again, I am going to reiterate and I'm gonna stress to you that if you are doing it monthly, you always be ahead and I recommend you being ahead by 12 months. So if you're a musician and you're promising that you're gonna create mad beats for your hip hop uh website, and you're gonna give 10 new beats every single month, well, I recommend that you go and you create 120 beats and you have them pre-set up to drip out every single month.
    
Before you even launch your product. That way, you don't have to worry about it. You created it once, you went through the struggle or the month of hard work of making all those beats, and then you set it all up to drip, and then the rest of the year, you just collected all that money. And then you kept an eye on your attrition though, right? And that's important. You got to keep your eye on your attrition. It's always a good idea to create an environment where the consumer has to keep coming back to consume, but you get paid regardless of their frequency. 
    
You know, if, if, if you are paying for a gym membership, can you go to the gym this month and say, hey, I didn't come last month at all, so I want, I want your credit. That doesn't happen, you know what I'm saying? Like, you, your people are gonna pay you just because the access was there, whether they use it or not. And it's funny, you get people all the time that try to, you know, they, they, they try to go back on their word, they try to neg on their agreement, and they, they made an agreement to pay for my unfair advantage for, you know, the, the duration of the time.
    
And they lose access if they stop paying and a lot of them, uh, when that happens, they say, well, you know, I want to be able to keep what I had. You know, I paid you for 3 months and I had access to all that stuff that I still want to be able to have. So hold on a second. You wanna be able to, let me just get this straight. You want to be able to sign up for the gym, pay for the gym, right, on a monthly basis, then stop paying for the gym, but be able to keep going to the gym. No, no, no, no, no. I just, there were products in there and I want to be able to have access to, oh, OK, so you want to be able to stop paying for the gym and take some of the equipment home with you. That's what you're saying. You want to take some of these universal fitness machines home with you. I want to take a train or two? Come on. Some people are just ridiculous when they're looking for money and they're just the way that they try to justify their refund excuses and stuff like that. I don't, I don't play that game. Homie don't play that. The reality is that
    
This model is very profitable. There's always, no matter what model you pick, there's always gonna be somebody that tries to find a loophole, somebody tries to get over, you know, but this is a great, great, great, great model for you to start getting into. Uh, I, I have multiple pillars to my business, uh, and recurring income is one of the most profitable. It is one of the ones that I wish I would have started doing a lot, a lot earlier. So I encourage you to start doing it as well. Like I said, remember the, you know, the example that I did of a gym membership. You know, people pay monthly for the freedom to use the equipment and the facilities. You can also think of it like a book club where they're actually paying you, you know, people are automatically uh paying you every single month to receive the book of the month or the item of the month or whatever it is you're releasing. But all of those items were already in there since day one. 


It's just waiting for their day to elapse there that mark to elapse that you've preset. Always, always, always protect your membership site content. That's what makes this official. You know what I'm saying? If that gym didn't ask to see your ID every time you came, then what is the value in paying for the membership? If every time somebody goes to your website to access your material, they go in there and they enter their password, but then they see that they're watching YouTube videos? Excuse me. What sense does it make, right? 


What sense does it make for you to be putting your content on YouTube that you're making, paying people to pay you for, right? So, keep your content protected, uh, keep it inside of your membership site. There's many tools out there. Focus on attraction and retention while keeping your eye on attrition. This is important. I hope you enjoyed this video, regardless of all the spelling and grammar errors. I hope that you paid attention to the content and the concepts that I went over here because let me tell you something that can make all the difference in your life. 


I look forward to seeing you in the next episode. Take care.
























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