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Cloud Access Control: How to Build Monthly Recurring Revenue

PDK Monthly Recurring Revenue with calendar and coins

Security and access control technology is developing as rapidly as ever, especially in the last few decades, marking a general shift from on-prem to cloud-hosted platforms like ProdataKey (PDK). For security integrators, partnering with PDK can be a successful avenue for generating recurring monthly revenue and growing their business sustainably. Here’s why RMR is critical for business owners and the best strategies for boosting it.

PDK Keyless Access Control

ProdataKey (PDK) delivers a robust yet easy-to-navigate cloud access control system with unparalleled flexibility and security. A departure from traditional on-premise solutions, PDK’s cloud-hosted platform allows users to manage their property remotely via web or mobile app, offering ultimate convenience and real-time updates. PDK systems eliminate the need for extensive on-site servers and other infrastructure, reducing upfront costs and ongoing maintenance. with cloud updates VS. old on-prem Computer

What are Recurring Revenue Models in Cloud Access Control?

We’ll start by answering a fundamental question: what is recurring monthly revenue (RMR)? RMR is a revenue stream generated from ongoing support and services. ProdataKey works on a subscription model, charging a recurring fee for access to and managing the cloud platform. PDK also offers services like tech support, diagnostics, and software updates. ProdataKey sets a cost for hosting, but it is up to the dealer partners to build contracts and create even more value for their end-user customers. On-premise access control solutions don’t provide an avenue for RMR; typically, they are just a one-time service.

Recurring Revenue Benefits for Security Integrators

A recurring monthly revenue model is one of the best things any company can do to drive its value, plan for the future, and build stronger customer relationships.

“RMR income is directly related to the value of the business. Today, the valuation may be anywhere from 26x to 46x the generated monthly recurring revenue,”

JR Andrews, Regional Sales Manager at PDK

A predictable, consistent income stream gives businesses a new sense of security, offers protection during periods of slower growth, and helps them make stable decisions and investments. Moreover, providing ongoing services builds customer connections and can help increase repeat business.

The Value of a Cloud-Based Security Platform

appraisal - cost = value

The number one way to sell end-user customers on a subscription-based model is to show them the value of the service. Some customers may be apprehensive about paying a recurring fee, especially if they’re used to one-time traditional systems, unless they understand what they’re getting for it. One way to think about selling a hosted solution like ProdataKey is by using this Equation: value = appraisal minus cost. ProdataKey keyless access control systems offer many benefits that are simply unattainable with on-prem security systems, such as remote-based access, automatic updates, webhooks and integrations, and high-security features. Ultimately, the more value you can provide to a user, the more revenue you can generate.

Beyond the cloud-powered features, PDK has a very competitive total cost of ownership.

“digging into the details around the hard and soft costs associated with non-hosted (on-premise) and comparing and contrasting with PDK’s solution to truly show prospective dealers and end users the value that PDK brings.”

JR Andrews

PDK cloud access systems have a competitive total cost of ownership, eliminating hefty upfront costs for on-premise servers that often only have a lifespan of about five years. It’s important for integrators to emphasize the return on investment customers will get from reduced hardware costs, lower maintenance fees, and enhanced efficiency.

Create Customized Access Control Solutions

A pivotal aspect of boosting recurring revenue with ProdataKey is a combination of product knowledge and understanding customer needs.

“It’s important for our partners to ask good discovery questions and determine the wants and needs of the end users,”

Cole Nebeker, Training and Event Manager at PDK

Determining where the customers’ priorities lie can help you, as an integrator, focus your sales efforts and highlight the features most important to them.

“If you ask the right questions, you can customize your approach to the end-user and build them a solution that is exactly what they need,”

Cole Nebeker

How to Build Value for End-Users

There are a few strategies for building value for customers with ProdataKey systems, and every integrator does it their own way. One approach is to get a little creative with building out contracts. Some customers may be apprehensive about a SaaS (Software as a Service) fee, so showing them they will receive ongoing support could help integrators win bids. “Some people loop in the recurring costs into things like maintenance contracts or service agreements so that it comes across more to the customer as service from the dealer versus hosting costs,” said Marshall Burton, PDK Regional Sales Director.

Create Value with 24/7 Tech support and System and Health notifications

Offer 24/7 technical support and regular system health checks as part of a monthly subscription. Customers are often willing to pay for peace of mind, knowing their system is continuously maintained. Another example is that some dealers will offer extended warranties or leasing options with the contract, which helps boost additional recurring income while providing a better service for the end-user.

Red Readers

ProdataKey’s hosting subscription pricing is very straightforward; however, additional services can be added to meet specific customer needs. PDK Red Bluetooth readers are an add-on that offers 13.56MHz high-security, OSDP-encrypted communication, and convenient mobile access. RED readers also have standard 26-bit Wiegand options, making it easy to transition new customers from their pre-existing systems to PDK without purchasing all new key card credentials right away. “Over time, they can move away from unsecured credentials to provide higher security and peace of mind,” said JR Andrews. Other billable add-ons include advanced reporting plans, BLE credentials, and some specific integrations.

ProdataKey cloud access control systems offer a versatile and powerful solution for modern access management. By taking full advantage of ProdataKey’s recurring monthly revenue model, integrators and security dealers can transform their traditional one-time sales approaches into sustainable success. With the right strategies, emphasizing the value of the cloud, and exceptional service, partnering with PDK keyless access control can be a game changer for your business.


PDKMonthly Recurring Revenue sheet



Brach, Marshall, and Daren Egan, Sales Manager at Peak Alarm, discuss recurring revenue strategies, marketing tactics, and Peak Alarm's partnership with ProdataKey.


listen to Brach Bengtzen and Dallan Labrum discuss the importance of RMR and how it helps our partners succeed with their business.


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