Can Peace of Mind Make You Rich?

We have seen in previous blogs that when it comes to the value of your business, what happened in the past is much less important than what is likely to occur in the future. One of the most important ways you can shape the future of your business is to create some recurring revenue, it is critical for the value of just about any small business, and it is equally important for the world’s largest companies.

I mentioned in my last blog “Consumables Model” as one of the Recurring model described by John Warrillow, in his book The Automatic Customer:  Subscription Business in Any Industry. Selected by Fortune Magazine as one of the “5 Best Business Books” of 2015. Today I share with you what John says about:

The Peace of Mind Model


The serenity of knowing you’re covered in the event of a catastrophe.

For example, if you install roofs, you could offer a warranty program where you ask your customers to pay you a small amount of money each month for the peace of mind to know that in the event that their roof starts leaking, you will come and fix it at no charge.

People with dogs always worry about losing them, and that’s where Tagg comes in. With Tagg, a pet tracking service that had 30,000 subscribers in 2013, you can keep an eye on Rover for $7.95 per month. If Rover leaves a specified area (that you determine), you get an alert on your smartphone.

If you want to monitor the whereabouts of your car, and be notified of its location in the event of theft, you can subscribe to LoJack Stolen Vehicle Recovery System. LoJack will also keep an eye on your MacBook for $39.99 a year. And if your dad suffers from Alzheimer’s, for $30 a month LoJack’s SafetyNet will track his location through a GPS-enabled wristband if he goes missing.

Businesses also buy peace of mind. Website monitoring companies like will keep an eye on your website and notify you if there’s a problem.

Radian6 pioneered the “online reputation monitoring and management” industry before they were acquired by Companies like Honda and Cisco use Radian6 to listen to the conversation about their brand on social networks so they can tell their side of a story if bad buzz arises online.

How Insurance Companies Make Money?

Like all insurance, The Peace of Mind Subscription Model is selling the serenity of knowing you’re covered in the event of a catastrophe. Most people think insurers profit by charging more for premiums than they pay out in claims; but the real money is made from ‘float, ‘ the money you make investing the cash people pay in insurance premiums before they make a claim.

  • When leveraging The Peace of Mind Subscription Model, you can limit your risk by:
    • Offering the subscription to a handful of customers so you can get a sense of how often claims are made.
    • Limiting your customer offer. In the roofing example, you could offer to cover repairs up to a certain dollar amount, or for damage caused by a limited number of reasons.
    • Buying an insurance policy of your own that covers you for an unexpected volume of claims.

Who The Peace of Mind Model Works Best For?

Consider The Peace of Mind Model if you have:

  • A business where you can absorb the cost of a claim by leveraging your existing assets rather than paying out cash. In the roofing example, you already have the crew, ladders and trucks for installing roofs, so your cost to honor a claim may be minimal.
  • A history of customer service calls, thus enabling you to predict the likelihood and frequency of a claim.

What the Insiders Say

  • Limit your risk. Premiums may look like free money, but you need to ensure you have the resources and infrastructure to honor your commitment if your customer calls.

Can your business survive without you?

Take the free mini value builder test

If you wish to build up the value of your business and would want to explore what you could do to make it sellable, please do not hesitate to call Jean-Bertrand de Lartigue on +44 1656 766 363 or email him,

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