Discover How You Can Get More Steady, Recurring, Highly-Profitable IT Service Contract Revenue
Do you own or manage a computer consulting business, VAR, network integrator, IT solution provider, managed services provider, system builder, or computer repair business?
If so, how is your firm's recurring service revenue doing?
Do you start from scratch each month, never really knowing how a particular month is going to shake out?
Or do you start out each month with a very high degree of confidence, knowing that you already have several thousand dollars (pounds, euros, etc.) in service revenue commitments from your clients on IT service contracts?
If that first scenario, starting from scratch each month, sounds way too familiar, it's time to put an end to these feast-or-famine revenue swings, so your firm can start out each and every month with a big running head-start, more predictability, and a much stronger, much more profitable, healthier bottom-line.
"Amateurs fly by the seat of their pants. Professionals insist on having their clients on some kind of long-term IT service contract program."
- Joshua Feinberg, Business Development Director, SP Home Run Inc.
How to Get Your Firm Much Healthier with Recurring Service Revenue
All too often, small business technology providers make grandiose expansion plans, and take on a ton of additional overhead, without really thinking through their IT service contract program...almost as if recurring service revenue was an afterthought.
But without this recurring revenue, it's extraordinarily difficult to have a stable, proftiable scalable business.
So what can you do to get your technology provider business that big running head-start each month, that greater sense of predictability, and that much stronger, much more profitable, healthier bottom-line?
Well let's roll up our sleeves and get a little more specific.
When the calendar flips over to a new month, how many thousands in service revenue commitments, at the absolute minimum, do you already have from your steady IT service contract clients?
- Is it 4 clients each on a $1,000/month minimum services retainer ($4,000/month)?
- Is it 10 clients each on a $1,500/month minimum services retainer ($15,000/month)?
Or, perhaps your firm is starting to really scale-up and it’s something like:
12 smaller clients each on a $500/month minimum services retainer
4 clients each on a $1,000/month minimum services retainer
10 bigger clients each on a $1,500/month minimum services retainer
Totaling Up to Something Like:
26 clients with $25,000 in monthly services retainer commitments
And it really doesn't matter whether you do business in dollars, pounds, rands, euros, francs, or any other similar currency. The math is the same. Starting from scratch each month is no way to grow a technology provider business.
Your IT Service Contract Program's Success, or Lack Thereof, Impacts Every Aspect of Your Businesss...
And Even Ultimately Flows Down to Your Family's Standard of Living (And Your Staff's)
So, if you want more predictability and stability in your business, so you can make growth, hiring, expansion, and even more basic family/personal spending decisions with much greater confidence, you need to have several steady, high-paying small- and medium-sized business clients on your firm's IT service contracts.
After all, who in their right mind really wants to start from scratch each and every month?
Can you really afford to spend $300 on a marketing budget and 4 hours of sales time chasing after one-shot-deal customers that spend $300 once, and then “might” call you again once in a year or so?
You just can’t build a business that way. The numbers just don’t work. You can't put customers' empty promises into your accounting software or the bank, for that matter.
The Answer? The IT Service Contract-Centric Business, Where 100% of Your Small Business Clients are Committed Long-Term
In order for computer consulting businesses, VARs, network integrators, IT solution providers, managed services providers, system builders, and computer repair businesses to have successful, profitable client lists, you must have clients on annual IT service contracts.
The trouble, however, is that although many small business technology providers want to have more steady, recurring service revenue, so they know they already have several thousand in service revenue commitments at the absolute minimum every time the calendar flips over, most have no idea where to even begin.
And even among those who do make some progress in putting together their firm’s IT service contract offering, many make literally every rookie mistake in the book and end up having to scrap the whole thing and start over 12 to 18 months down the road.
But it doesn’t have to be that way, if you know what you’re doing.
That’s the reason why you'll get access to so many easy-to-follow, easy-to-customize, field-tested, proven tools and resources to build your business with IT service contracts and recurring service revenue with your SP Home Run Major League Membership.
Since 2002, we've been advocating that small business technology providers focus all of their marketing, lead generation, lead nurturing, and consultative selling resources on those small business decisions that have the (a) need, (b) authority, and (c) budget to engage in a long-term outsourced virtual IT arrangement that's built on top of an IT service contract.
"Specializing" in one-shot-deal, money-losing customers is no way to build a business. You need to focus on those small businesses that:
- Need an end-to-end, comprehensive, premium solution
- Have an appropriate IT budget
- Understand just how powerful IT can be as a strategic, competitive weapon when IT is deployed and managed properly
But just as importantly, you must recognize that although IT services contracts and recurring service revenue are VERY important pieces of the puzzle, they are not the first piece of the puzzle. And they are certainly not the final piece of the puzzle.
You Still Have to Know...
- How to market your business efficiently
- How to cost-effectively generate super high-quality leads
- What to do to qualify your leads
- What to do at your initial sales appointments to move your qualified prospects swiftly, effectively, and profitably from “free” to “fee,” so you end up with new paying customers
- How to structure the ultra-important first paying engagements with new customers
- What to do about all the substandard IT problems, deficiencies, and vulnerabilities that you find
- When is the best time in the sales process to discuss long-term IT service contracts
- How to migrate your new customers and existing clients to long-term, ongoing IT service contract arrangements
- What to do to extend your reach from both a marketing and technical perspective with your subcontractors and partners
All of these topics are covered step-by-step at great length, using field-tested, proven strategies, as part of your SP Home Run Major League Membership.