As a security professional, it's essential to understand the importance of recurring monthly revenue (RMR). RMR can provide a steady stream of income for your business, and it's a crucial factor in the success of your PDK installations. In this blog post, we'll explore the benefits of RMR, and why it's necessary for security professionals to prioritize it.
Firstly, let's define what RMR is. RMR is a type of revenue that is generated from recurring services, such as monitoring, maintenance, and upgrades. These services are typically billed on a monthly or annual basis, providing a predictable and consistent income stream for security professionals. With RMR, professionals can rely on a stable revenue stream, rather than relying on one-time installations or
service calls.
One of the most significant benefits of RMR is a proven and tested system that provides a sense of security for your business. With RMR, you can predict and plan for future revenue, which can help you make better business decisions and investments.
Consero Global gave this stellar example on recurring revenue: “To investors, the value of predictable recurring revenue is the primary appeal of the recurring revenue business model (especially in comparison to one-time transactions). For example, a $10 million business with 80% recurring revenue can count on $8 million at the beginning
of each year, and that figure is predictable and stable. The company’s management can invest and plan accordingly. On the other hand, we cannot say the same for a $10 million business with no recurring revenue because that company starts each year at zero. It can plan and make predictions based on past financial performance, but there is no contractually obligated revenue stream for it to base its plans around.”
Building stronger relationships with your partners is another benefit of RMR. With RMR, you're not just a one-time service provider, but a trusted advisor who can offer ongoing support and services. In turn, this can lead to increased customer loyalty and recurring business, which are crucial to the success of any business.
Mark Roberge, former SVP of Sales and Services at HubSpot, said this about RMR
"Recurring revenue is the foundation of predictable, sustainable growth. It enables companies to build stronger relationships with customers, create new revenue streams and make strategic decisions with confidence."
RMR is also essential for security professionals because it allows you to offer additional services to your customers. With RMR, you can offer monitoring and maintenance services, which can help you increase your revenue while also providing added value to your
customers. PDK offers a variety of monitoring and maintenance services, such as remote monitoring and diagnostics, software updates, and technical support. Not only do these bring added value to your customer, but they also bring added value to your business.
Ben Johnson of Hoosier Security, a seasoned veteran in the security industry, said
“RMR is the only security product that gives an integration company proven value. This is important when applying for capital, seeking investors, or even looking to sell a business. Additionally, if positioned correctly, it gives integrators a recurring touchpoint with their customers to continue generating new sales to that customer.”
In conclusion, RMR is an essential component for the success of security professionals. By doing so, you can build stronger relationships with your customers, increase revenue, and build a stable and predictable source of income. For long-term success, security professionals must prioritize RMR. If you're interested in becoming a certified PDK installation partner, visit prodatakey.com/get-certified to learn more about the certification process and prodatakey.com/buy to find where to purchase PDK products.
