Focus On Recurring Revenue Now, Or Hate Yourself Later
By Mike Monocello, editor-in-chief, Business Solutions magazine
It's easy to look at certain recurring revenue opportunities and think that they just aren't worth you time. Sign one customer up for [insert product here] and you might be earning a few pennies per transaction. Is this really worth your time, particularly since you're so busy?
In speaking with VARs who are new to this model, having a few customers on a handful of subscription-based offerings, they speak with the hope that some day the money will be "real." I spoke with one VAR who recently started offering his POS bundles on a leased model. "Yeah, the money isn't great right now, but as I add new customers and time goes on, I see huge potential in this model," he says.
Another VAR I've been staying in touch with is further along in this model. About 10 months ago, he told me he was covering one payroll with all the recurring revenue services (gift card, loyalty, payment processing, etc.) his company offered. Two days ago he told me he was now covering three payrolls. This VAR is so caught up in the excitement and potential of this model, he's constantly looking for new services he can offer his customers.
The beauty of this model is that with time and focus it can become something that can automatically generate revenue for you with little to no effort.
Begin looking at your business to uncover ways that you might be able to reshape your offerings as services. Look for new services you can offer your customers. These are the things you can do to build a more stable and profitable business.