Just posted a quick video to demonstrate the beauty of recurring revenue.
You might add telephones, security monitoring, toner refills, or anything else you want to that list.
The more you make your offering basic, the more likely it is to sell well and be renewed forever. What do I mean by basic? Well, consider web hosting. Everyone needs it and most people never consider moving it unless they are getting bad service or find out they're being over charged.
Basic.
Email is basic. Anti-Virus is basic. Spam filtering is basic.
When you sell these things as a service, you buy service in bulk and sell them as needed. So you get great pricing and decent margins. And if it's a service, you have almost no maintenance, so you get to keep all that profit.
It's also important that you bundle these services so that you create a SKU that no one else has. Sell your bundle at a reasonable price and everyone will want it.
Here's that video:
:-)
For a GREAT example of creating a bundle of services for recurring revenue,
visit my Cloud Five Pack web site and join me at the big 12th Annual Fall Seminar!
What is recurring revenue?
Quite simply, it's any regularly billed services that you can sell to your clients. My favorite combo includes anti-virus, remove monitoring, patch management, spam filtering, hosted Exchange, backup, and even Microsoft Office.You might add telephones, security monitoring, toner refills, or anything else you want to that list.
The more you make your offering basic, the more likely it is to sell well and be renewed forever. What do I mean by basic? Well, consider web hosting. Everyone needs it and most people never consider moving it unless they are getting bad service or find out they're being over charged.
Basic.
Email is basic. Anti-Virus is basic. Spam filtering is basic.
When you sell these things as a service, you buy service in bulk and sell them as needed. So you get great pricing and decent margins. And if it's a service, you have almost no maintenance, so you get to keep all that profit.
It's also important that you bundle these services so that you create a SKU that no one else has. Sell your bundle at a reasonable price and everyone will want it.
Here's that video:
:-)
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