Marketing and advertising are ever-evolving landscapes, deeply influenced by societal changes and shifting consumer preferences. In today’s episode, we sit down with Steve Gray, the driving force behind Primal Labs, to gain insights into how the changing landscape impacts their marketing strategies. We’ll also explore Primal Labs‘ successful implementation of a recurring revenue model and how it has contributed to their impressive growth and revenue exceeding $20 million annually.
- 42, married for 20 years, with two kids. 15, & 13. Live in Allen Tx.
- Went to UT Austin and dropped out in ’97 to work as 5th employee for Cybercorp, a day trading software firm. 3 years later we were bought by Schwab for $488M.
- https://www.bizjournals.com/austin/stories/2000/01/31/daily11.html
- Went back to school to finish my degree. 5-month study abroad in Europe. Hit 13 countries and 40+ cities.
- Broke by 27 (2004). Had to go back and work for my dad.
- Full time marketing online in 2007.
- Started Primal in 2012. Crazy growth. $600K – 12, $3.5M – 13, $5.5M -14, $11M – 15, $33M – 16, $30M – 17, $20M – 18.
Why recurring revenue model is a good business model?
In the world of business, finding a sustainable and predictable source of income is a constant pursuit. One business model that has gained significant traction in recent years is the recurring revenue model. This model involves customers paying a regular fee in exchange for continuous access to a product or service. In this article, we will explore the benefits of adopting a recurring revenue model and why it can be a game-changer for businesses seeking financial stability and long-term growth.
One of the primary advantages of a recurring revenue model is the ability to generate predictable income. By securing a committed customer base that pays regular fees, businesses gain a clear understanding of their revenue stream. This predictability enables better financial planning, facilitates accurate forecasting, and empowers businesses to make strategic decisions confidently. With a steady flow of income, businesses can allocate resources effectively and invest in growth initiatives with greater clarity and purpose.
The recurring revenue model lays a solid foundation for sustainable growth. The reliable income generated allows businesses to reinvest in various areas of their operations. Whether it’s developing new products and services, expanding marketing and sales efforts, or enhancing customer support, businesses have the financial stability to pursue growth opportunities consistently.
The recurring revenue model fosters strong customer relationships and increases customer lifetime value (CLV). When customers are satisfied with the ongoing access they receive, they are more likely to renew their subscriptions or continue using the service. This boosts customer loyalty and extends their engagement with the business. As customers remain active and loyal over an extended period, their CLV increases, leading to higher profitability for the business.
Adopting a recurring revenue model can also lead to reduced marketing costs. With a reliable customer base generating recurring revenue, businesses can allocate a portion of their funds towards customer acquisition and retention strategies. By nurturing existing customers and focusing on retention efforts, businesses can reduce their dependence on costly acquisition campaigns. Additionally, positive word-of-mouth referrals and customer advocacy become more prevalent as satisfied customers share their positive experiences, further driving down marketing expenses.
Overall, a recurring revenue model can be a very beneficial business model for businesses of all sizes. If you are looking for a way to improve your business’s financial performance, a recurring revenue model may be a good option for you.
In this episode, Steve, Mary, Richard, and Steve discuss:
- The role Primal Labs takes in addressing the health concerns of baby boomers.
- The starting days of Primal Labs in 2012 and its pivot point.
- The recurring revenue model and how it is working for Primal Labs.
- How the changing landscape in society affects marketing and advertising.
Key Takeaways:
- Be the board.
- Learn what you can and get better at your craft from every project you do.
- Hindsight is 20/20 – pivot from where you are when you realize it is not what is working.
- When selling, it’s not just about value, it’s also about vision and where you see your company going.
Best Advice I Ever Received:
Be the board.
Best Advice I’d Give To Someone Who Wants To Build A $10m+ Business:
Get good at marketing/sales & Read Ready, Fire, Aim.
