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Four Tips for Increasing Your Doggie Daycare & Kennel's Recurring Revenue

Last Updated: December 12, 2018


Monthly Recurring Revenue is one of the most important things a small business can have. It helps fills the gaps in the revenue stream when normal services like boarding and grooming start to falter a little bit. The question is, how does a pet service business start generating recurring revenue? There are a few different options for creating your recurring revenue streams, including starting a subscription service, becoming an online affiliate for pet insurers, and subleasing your facility to another business.

1. Start an All-You-Can-Board Pet Boarding & Subscription Service

We're all familiar with Netflix and Spotify. They are two of the most successful online subscription businesses today. Have you ever noticed that some months, you watch a lot of Netflix and listen to a ton of Spotify, and then the next, you end up listening to most of your music and watching most videos on YouTube. You did, however, pay the same for each month. That's the beauty of subscription businesses, you pay the same, regardless of how much you use them.

Take this concept into the pet-service business. Create an All-You-Can-Board plan where users get a low monthly fee, but they have to sign up for a certain amount of months. They can drop off their dogs as much as they want during regular business hours, but they always pay the same amount. Maybe one month they drop off their pets a few days more than normal, so you take a tiny hit in revenue, but the next month, they might go on summer vacation to the lake for a few weeks and bring Fido along. You're still getting paid for his boarding, even though he's not using any that month.

2. Become an Affiliate of a Pet Insurance Company

PetsBest is probably the most well-known pet insurance company out there. They provide insurance for thousands of dogs and cats. Did you know that you can get paid a nice commission for every pet owner that you turn onto their pet insurance? You can even get residual benefits when the pet owner re-ups their insurance plan at the end of the year. Just like high-paid sales people that get monthly and yearly commissions from past sales, you can do the same. Ask your pet insurance rep for some marketing materials that you can have around your business. Inform your clients about pet insurance and see if you can't get a few to sign up. Once you build your referrals list, you'll have a nice little stream of money coming in each month.

3. Sublease Your Business's Facility to Another Pet-Service Business

Not all pet daycares and kennels offer grooming services. In fact, most actually don't offer grooming services because of all the paperwork. If you have a large pet daycare and kennel and have some extra space available, you might be able to do a little light construction and create a subleased pet grooming facility. Much like how hair stylists rent out chairs at a fashion salon, you can rent out your space to a groomer, or to various groomers, on certain days of the week. On Mondays and Tuesdays, Kelly's Claws rents the spot for her pet nail business. On Wednesday and Thursday, Tom's Trims rents the place for their pet grooming business. You get the idea. Make use of that extra space and get out there earning some monthly rental income from your unused facility space.