Mar 3, 2022 8:00:00 AM by: Jill Duran

  1. 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.

  2. The margin is much higher on service sales that generate monthly recurring revenue than it is on a one-time project sale.

  3.  You do not need as many wins to generate the same level of revenue or margin as one-time project sales.

  4. 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.
These reasons alone should make MRR a priority for the leadership team of any integrator. To understand the payment flow of MRR sales, watch the rest of our MRR Basics Series here.

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.

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technology as a service / monthly recurring revenue

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