- You start every month and every year with a known income. Recurring revenue provides financial strength to weather the notoriously unpredictable nature of project sales which can evaporate completely in economic downturns.
- The margin is much higher on service sales that generate monthly recurring revenue than it is on a one-time project sale.
- You do not need as many wins to generate the same level of revenue or margin as one-time project sales.
- Your Business Is Worth More. If you try to sell your business, buyers will pay as much as 10x more for recurring revenue than they will for revenue from one-time project sales.
Learn more about recurring revenue here or check out the playbook for system integrators that provides a deeper dive into how to make the pivot to selling a service sales model and building monthly recurring revenue.