RMR Deep Dive: Growth Rates, Industry Impact & More Revealed
In case knowing recurring revenue builds company value isn’t enough, holdouts may be won over by new research showing 42% margins and 17% growth.
Spontaneity, being “present” and living in the moment may be beneficial on an interpersonal level and better allow one to fully appreciate the unique experiences that each day brings. But, both personally and professionally, it’s only a third of the formula for success.
Just as essential are short- and long-term planning to help ensure ongoing and future favorable outcomes for yourself, family and business. All security dealers and integrators have the here-and-now covered with daily operations, and those focused on large or complex projects can check the near-term box.
However, only those providers generating recurring revenue are truly setting the foundation for a company built to last over the long haul. As stated here last year, recurring monthly revenue (RMR, a.k.a. passive income) is not only the gift that keeps giving in terms of generating a continuous stream of revenue that allows firms to earn money round the clock, but it also delivers a multitude of other business benefits.
RMR-based accounts elevate a company’s equity and thusly convey the overt value in which investors and the financial community find comfort and prospect. Also, it’s widely believed those customers represent an ongoing opportunity to upsell more products and services, allowing for deeper, “stickier” long-term relationships. Fostering such loyalty feeds positive word-of-mouth and referrals that can fuel substantial growth.
Moreover, those attributes can help a security concern obtain more favorable lines of credit and draw a higher multiple should the business be put on the market for sale. The recognition of all those virtues combined with greater customer desire to leverage newer technologies for greater efficiencies, effectiveness and convenience in both the home and the workplace — in conjunction with manufacturers offering more Cloud- and software-based, “as-a-service”-style solutions — represent a transformative opportunity for security dealers and integrators.
Developments in home and building automation, the Internet of Things (IoT), and 5G and system communications are further propelling the industry toward recurring revenue models. To help the industry fully wrap its arms around the RMR phenomenon, three years ago Security Sales & Integration launched its Recurring Revenue Report.
Updated with a fresh moniker and expanded with several new questions, the 2020 SSI Recurring Revenue Deep Dive continues surveying dealers and integrators to assess the opportunities, probe the challenges and establish key benchmarks.
Find out to what extent RMR will drive residential and commercial business in 2020; how much money is being made; growth percentages; RMR’s impact on technology sectors; and the optimal RMR-friendly products, systems and services. View these findings in the slideshow or download a copy of the report, here.
View the 2020 SSI RMR Deep Dive
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About the Author
Scott Goldfine, Editor-in-Chief and Associate Publisher
Scott Goldfine is Editor-in-Chief and Associate Publisher of Security Sales & Integration. Well-versed in the technical and business aspects of electronic security (video surveillance, access control, systems integration, intrusion detection, fire/life safety), Goldfine is nationally recognized as an industry expert and speaker. Goldfine is involved in several security events and organizations, including the Electronic Security Association (ESA), Security Industry Association (SIA), Security Industry Alarm Coalition (SIAC), False Alarm Reduction Association (FARA), ASIS Int'l and more. Goldfine also serves on several boards, including the SIA Marketing Committee, CSAA Marketing and Communications Committee, PSA Cybersecurity Advisory Council and Robolliance. He is a certified alarm technician, former cable-TV tech, audio company entrepreneur, and lifelong electronics and computers enthusiast. Goldfine joined Security Sales & Integration in 1998.
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