You being confident in your predictable and sustainable revenue each month.
Achieving monthly recurring revenue with margin-rich support services is not a dream and it is an easily attainable goal.
Small Hinges Can Open Big Doors
Ever hear the saying, “small hinges can open big doors”? It doesn’t take much to make a big impact. If you sell any type of technology equipment such as; security, audiovisual, IoT, unified communications, video conferencing, digital signage, IT, storage devices, data networking or any other relating technology DO NOT stop reading.
You have traditionally got by on the one and done sales model. You know this model. A customer needs equipment, you sell them equipment, they pay you a set amount, and you move on. Unfortunately, with the advancement in cloud, service-based solutions, and competition your margins are shrinking and will only continue to make it hard to survive if you are not making the steps to adapt. Evolving into a company that can predict a certain percentage of its revenue can operate more confidently and has power in decision making and future growth strategy.
One Thing You Can Do To Earn A Lot More Recurring Revenue
Solution providers can achieve this holy grail of recurring revenue and step out of the shadows of this one and done equipment sale by doing one specific thing. Selling as many multiyear support contracts at the point of sale as possible. For some, this might seem like a difficult thing to do, and here is why:
After over 26 years helping businesses finance technology solutions, our data shows us that your customers will only commit to multiyear support contracts about 10 percent of the time when they make a cash purchase. The silver lining here is that multiyear support contracts at the point of sale are sold 68 percent of the time when sold with a monthly payment option.
Monthly Payments Sell More RMR
So, how do you sell more multiyear support contracts at the point of sale so you can start receiving more predictable and stable recurring monthly revenue (RMR)? Recommend a monthly payment option as the preferred way to pay.
I don’t recommend any old way to pay in a monthly capacity though. I strongly believe in offering customers something that benefits them even more than it benefits you. Because selling by way of helping to solve pain points is the most successful and fulfilling way to satisfy and create lifelong customers.
Do You Have a Technology as a Service Offering?
This is where a technology equipment as a service payment option can create a well thought out total solution recommendation for your customer. If you need to create new recurring revenue streams and simultaneously create satisfied customers that will become loyal followers of you, get to know more about technology equipment as a service for your solution offerings.
Don't have a true as-a-service offering? Want to learn more about earning recurring revenue while offering technology equipment as a service? Download our eBook to learn more about how TAMCO's partner program can help you build more RMR: