3 Ways To Build Wealth With The As-A-Service Business Model
By Neil Holme, Owner of Impact Business Technology, ASCII member since 2012
On my way to work I pass a billboard advertising the Connecticut Lottery. They now have two games available with a ”win for life” top prize — very tempting until you look at the odds of winning. Every day I play a different type of game — my “win for life”' strategy is based on recurring revenue streams in my managed IT services business. Here’s how I make it work:
1. Require Managed Services
I take on no new customers without them signing on to a managed services contract. It’s a hard stance to take sometimes, especially for a new business trying to acquire new customers. However, customers brought on to a break-fix model will have a much harder time switching over at a later date once they know how much their relationship with you costs.
Instead, explain to them that the reason you are able to deliver such high-quality service is because of the tools and technology your managed services contract uses — there is no service from you without having these tools in place.
While some customers will recognize the value of the managed services plan right away, others will resist since they are used to the time and materials model. Try them out on a hybrid approach — one where your managed services are there at an entry level but you continue to bill for the work performed. Over time you can drip feed them additional services when the opportunity arises.
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