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What is Recurring Revenue

Recurring revenue is a stream of stable revenue that a company can predict will continue into the future for a period of time. One of the most ideal and sought after type of recurring revenue in technology solution sales is monthly recurring revenue (MRR).

Why Does Everyone Want Recurring Revenue

Revenue is a company’s top line which always affects a company’s bottom line or profits. A company that can predict a certain amount of revenue has more confidence and power in its decision making and future growth strategy.

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How Solution Providers Can Earn Recurring Revenue

Sell More Multiyear Support

An example of recurring revenue in the technology solution sales business is on maintenance contracts. Maintenance contracts have a high margin. If a customer pays monthly for a 2-5 year maintenance contract, the solution provider earns that margin and can depend on that monthly recurring revenue (MRR).

How To Sell More Support Contracts

The way solution providers earn a lot of maintenance contracts is by recommending their solutions be paid for as a monthly as-a-service payment that already includes the cost of maintenance in the monthly payment cost. Having many customers with these contracts creates a lot more MRR.More on Recurring Revenue

3 Ways To Build Recurring Revenue With a TAMCO Partnership

If technology equipment is a significant component of your solution sales, it can be difficult and seem impossible to transition to or supplement your one time, revenue and project-based, sales with more steady and predictable revenue streams. TAMCO can guide you in cracking the code with this challenge to elevate and expedite building your recurring revenue streams. TAMCO can help in three different ways:
 
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1. More Maintenance & Support 

Most technology solution sales include the first year of maintenance and support. Then, the solution provider tries to go back to the customer in month 13 to offer more. This is rarely successful and if the customer does want support, there is no guarantee you will be the provider.

Working with TAMCO remedies this problem. When you recommend a TAMCO monthly payment option to your customer during the initial sale, you can bundle in the monthly support with our pass-through maintenance option. Bundling the support right into a monthly payment option makes the entire sale more palatable for the customer and easier for you to sell.

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FUN FACT: Partners who position and recommend a TAMCO payment option during the proposal gain a five-year support commitment with their initial solution sales on 60-70 percent of transactions.
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2. Greater Customer Loyalty

TAMCO helps solution providers contractually guarantee your customers return to you for future technology solution sales. One of the luxuries when a customer chooses a TAMCO Shield, equipment as a service, monthly payment option, through you, they must come back to you to utilize its full benefits, such as; upgrade, migrate, or look at new solutions.

This is not the typical MRR you think of when trying to gain your recurring revenue streams, but it is revenue that has longevity and you can be sure will not be lost to competitors.

3. Longer Term Customer Relationships

A convenient, value-added monthly payment option, peace of mind from technology obsolescence, protection from natural disaster, control over their solutions, flexibility to make good business decisions on technology. All of these are positive attributes you are able to provide your customer when working with TAMCO, offering our exclusive financial programs. While there are competitors who try, we have yet to find anyone who can offer this same value. Providing this type of care and differentiation to customers will result in you building highly satisfied fans. So much so, you may find your customers coming back to you for similar payment options on their other technology needs (security, surveillance, A/V solutions, video, voice, data, IoT, etc…). And TAMCO will gladly work with you to pursue any technology equipment needs.

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Download the Full Ebook: 3 Ways TAMCO's Partner Program Will Create Recurring Revenue

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Contact Us Today 

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We partner with solution providers selling all types of technology equipment; security, AV, voice, video, data, IoT, digital signage and more. Let's discuss if TAMCO is a good fit for your company and talk details about building recurring revenue for your organization. 

Call us today: 888.350.1842

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