<b>The quiet thing that shrinks your recurring checks: churn</b>

<b>The quiet thing that shrinks your recurring checks: churn</b>

New to recurring income? Let me teach you the word that decides whether your monthly check grows or melts. Churn is the share of customers who cancel each month. Think of a leaky bucket — you keep pouring new referrals in the top, but some drip out the bottom.

1. Say you have 100 referred customers paying you $5/month each = $500/month.
2. If 5% cancel monthly (5 people), you lose $25 next month before adding anyone new.
3. To just stay flat, you must refer 5 fresh customers every single month.

<i>In plain English:</i> low churn means your old work keeps paying; high churn means you're running to stand still.

Tiny action today: ask any program you're considering one question — "What's your average monthly churn?" Under 5% is a comfy bucket. Over 10%, the bottom leaks fast.