Grow Stronger With Recurring Revenue

Like this post? Share it!

If you only sell products and services – if  you have no sources of recurring revenue, then you are not as strong as you can be.

It doesn’t matter whether you are a consultant working from your house, or a $100 million per year solution provider.

Your customers have more ways than ever to get the products they want, and they have plenty of research tools available to make sure they are getting the absolute lowest prices. They can (and will) shop you against other providers every chance they get.

Service project sales have longer sales cycles, and, while they may be very profitable when they come, they are unpredictable. Worse, virtualization and cloud based “as a Service” technologies extend the time between the need for frequent service projects – customers don’t need you to deploy virtual servers or configure their own SPAM filtering like they used to.

Selling products and services requires continuous expenditure of time and money, and both are subject to too many external factors; if you aren’t selling, no new revenue comes through the door.

That means:

  • If your sales rep is sick, on vacation, or unavailable, you miss sales
  • If somebody is able to undercut your product pricing, you miss sales

You see the point.

Recurring revenue changes all of that. When you add sources of recurring revenue in addition to products and services, the game changes.

I explain this in more detail in my post Why Recurring Revenue Is So Important For Your Company

A strong source of recurring revenue helps stabilize cash flow, and provide the resources necessary to add value to your consulting organization, while simultaneously providing a foundation for growth.
  • I want to know what you think! Please comment below!

  • You're Not a Member?

    I take the concepts and principles I teach in my direct consulting engagements and break them down for you on the MSP Masters website. There is a lot of valuable content available for free, and there is much more available to MSP Masters members only.

    "If you are an IT service provider, this is an excellent forum to join. Helpful ideas and views on providing the proper services to your customers. John has helped many service providers build their offerings throughout his career. Now he is offering this knowledge to all service providers. You will find that it is well worth it." - Chris Blanchard, Director at Implied Networks

    "The MSP Masters website is a must for any managed services provider. Most of the free content on the site is enough to transform your business alone and the members only content just continues to build on that. As an owner of an MSP for over 7 years I find this site to be an extremely valuable asset to my business and always look forward to John's thoughts on ways to better my business processes and services. " - Timothy Martin, President/CEO Neoscope Technology Solutions

    If you are not currently a member, click below to learn how to access Members-Only content for $1.

    30 Days of Full Access to MSP Masters For $1

    Learn More
     

Like this post? Share it!

Start Your Trial Today!

Member Login

Username:
Password:

Lost Password?

Like MSP Masters On Facebook

Follow MSP Masters On Twitter