Recurring revenue model
We are engaged in real estate development. To stay in business you have to continue buying raw land (engage in land banking) and develop. After you run out of inventory you repeat the process and it cant happen forever because land is finite and their costs get higher. Sometimes your revenue cant keep up with increases in prices of raw land and sometimes raw land supply dwindle or become zero.
But the real profitable businesses are those that have recurring income:
1. Express ways where vehicles pay toll fees;
2. Health care;
3. Medicines
4. Food
5 Rentals
6. TV rentals
We see that MVP is engaged in massive recurring income: expressway, telephone load, water supply
Thus if you are selling real estate what could be the source of recurring income"
1 Water supply
2. Home maintenance
3. Commercial propery rental
We see that Apple try to get recurring income from music, movies etc.
What could be recurring income in your business?
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