Recurring revenue is a business model where companies earn a consistent income over time, often through subscriptions or contracts. This means that customers pay regularly, such as monthly or annually, for a product or service. Examples include software-as-a-service (SaaS) platforms like Netflix or Spotify, where users pay a fee to access content continuously. This model provides financial stability for businesses, making it easier to predict future earnings and plan for growth. With recurring revenue, companies can build long-term relationships with customers, leading to higher customer loyalty and reduced churn rates. This approach is increasingly popular across various industries.