At the start of this year, I wrote about three themes I had set for myself. Theme #1 was more recurring income.
To help me (and maybe you) get there, I’ve come up with the BCG (Bejakovic Consulting Group) Recurring Income Matrix.
Maybe know the Growth-Share Matrix by that other “BCG,” Boston Consulting Group. (The imposters!)
Their matrix asks two questions about a product or company — low/high market share, fast/slow growth. The result are four quadrants:
3. ??? | 4. Star
1. Dog | 2. Cash Cow
I don’t want to even dignify those other BCG people by explaining what their stupid animal quadrants are about.
But I do like the matrix idea.
So I decided to create my own for recurring income. My questions about recurring income, the ones dear to my heart are:
1. Does it require personal authority to sell?
2. Does it require personal involvement to deliver?
I thought about the four yes/no combinations. And so I’d like to present to you the Bejakovic Consulting Group Recurring Income Matrix:
3. Hosting on QVC | 4. Renting out
1. Flipping burgers | 2. Pushing the sled
Let me explain the quadrants in order:
#1. The lower left is flipping burgers. It doesn’t require personal authority to sell, but it does require personal involvement to deliver.
In other words, this is a regular job, or at least most regular jobs, except those few regular jobs where you’re truly irreplaceable.
Flipping burgers is a steady paycheck, provided by somebody else, as long as you keep working. Fair enough. Unfortunately, due to a genetic disorder, I find myself highly allergic to any prolonged time spent in this quadrant.
#2. The lower right is pushing the sled. It requires personal authority to sell, and also requires personal involvement to deliver.
This is most recurring income plays for solopreneurs and small info publishers online. Think paid newsletters, paid memberships, coaching, etc.
I call it pushing the sled because it’s like the sled at the gym — you gotta put in a lot of effort to get it moving, and as soon as you stop, it stops.
That might sound like a raw deal. But because it requires personal authority to sell, it tends to pay better per unit of work compared to flipping burgers. (Plus, if you’re the type to enjoy discipline-and-punish activities like Crossfit, you can even convince yourself that pushing the sled has salutary effects.)
#3. The upper left is hosting on QVC. It requires personal authority to sell, but doesn’t require personal authority to deliver.
This is where you trade on your good name, your charisma, or your previous success to promote something that will pay you for a time to come.
My best example of this is George Foreman, who allowed his name to be put on a grill and who appeared in infomercials to promote the product. The result was $200M in royalties and licensing fees into George’s pocket over the years.
This might seem out of reach for mere mortals. But if you have an audience, it’s really what recommending a specific tool in a crowded category is about (eg. Convertkit, sign up for it because it’s what I use). Also, I’d put recurring income like copywriting royalties into this quadrant.
#4. Finally, the upper right is the “renting out” quadrant. It doesn’t require personal authority to sell, and it doesn’t require personal involvement to deliver.
I thought of calling this the “cheating” quadrant because that’s how it can feel, at least if you’re coming at it with a perspective like mine, of selling info products via daily emails.
But really, this quadrant is familiar enough. If you have a lot of money already, it’s what rental income or stock dividends are all about. If you don’t have a lot of money yet, well, there’s ways around that that still make living in this quadrant possible. But that’s really a topic for a $5k course.
Final point:
You can move from quadrant to quadrant.
If you appear on QVC once to endorse a product, that appearance can be recorded and replayed over and over, which basically puts you into the renting out quadrant, as long as somebody else drives viewers to the recording.
If you’re pushing the sled now, you can eventually delegate or automate the delivery and move yourself into the QVC host position.
And if you’re in the flipping burgers quadrant, you can jump straight to renting out quadrant if you have the money or know-how… or you can build up your personal authority, so you can go to the #2 or #3 quadrants.
On that last note, if you would like to build up your personal authority, I have a recurring service to help you do that.
I am still creating this service by hand, day-by-day, instead of automating or delegating, putting me squarely into the #2 quadrant.
Maybe that will change in the future. But for now, I keep pushing the sled, because I tell myself it’s good for me.
In any case, if you’d like my help in building up your personal authority, so you can sell things that pay you over and over: