10 Ways VARs Can Build Sustainable Revenue Streams

By Christine Kern, contributing writer

Robert Carr, CEO and founder of Heartland, offered some keys to building sustainable business models to improve or build revenue streams during his presentation at Retail Solutions Providers Association (RSPA) RetailNOW 2015, held Aug. 2 to 5 at the Gaylord Palms Resort and Convention Center in Orlando, FL.

According to Carr, there are a number of revenue streams that are available to dealers who are interested in moving in new directions, including these ten:

1. Payments. Carr predicts more models like PayPal will emerge and more alternative payment systems will be developed, and that near field communication (NFC will be the way that these new capabilities will be enabled.
2. EMV. EMV is opening doors to replacing terminals and point of sale hardware.
3. Out-Of-Scope Solutions. Carr said, “Out of scope is the answer for the long term and the short term with the upgrade and POS. ISVs ought to enable out-of-scope solutions.”  He explained that out of scope solutions mean the point of sale never receives a card number or expiration date or CCV, protecting against data breaches and removing it from Payment Card Industry Data Security Standard (PCI DSS) scope.
4. Security. Security is foremost on everyone’s minds these days, and VARs have the opportunity to add security to solutions they provide.
5. Payroll. Carr pointed out that there are twelve million employers in the country, with nine million who accept credit cards.  That means that there is more opportunity in payroll than there is in payments.  “So,” he said, “if you believe the payments business is a revenue stream, why not believe in payroll, management and employee scheduling as the business as well?  It could be as much as half of your recurring revenue.” (Click here for information on Heartland payroll solutions.)
6. Loyalty And Gift Programs. While loyalty and gift are separate revenue streams, they present a continuously evolving opportunity.  There are obvious integrations to be done between gift and loyalty, and Carr identifies these are two additional revenue streams that are available to most dealers now.
7. Managed Network Service Products.  If you’re a dealer and you have well-trained local service people, Carr asserted, “The idea of supplying them with a managed network service is another opportunity for recurring revenue.”
8. Reservations, Wait Management And Online Ordering. These are products that are in the market now for a customer to go onto a restaurant’s website to make a reservation or make a payment. Carr advises that there is a lot of value and recurring revenue opportunity in wait management and online ordering.
9. Lending. By establishing partnerships with lending companies, there is an opportunity to boost revenue.
10. Data Analytics And Customer Origination. Merchants will pay for services in these areas that provide them with the data they are looking for, and there is a lot of value in these revenue streams.

For more articles on RetailNOW 2015, held August 2-5 at the Gaylord Palms Resort and Convention Center in Orlando, and the Retail Solutions Providers Association (RSPA), go to www.BSMinfo.com/go/InsideRSPA.