4 Top Reasons Integrators Should Make RMR a Priority

A company that can predict a certain amount of revenue has more confidence and power in its decision-making and future growth strategy.

The security technology industry has seen a rise in demand for as-a-service offerings, not only for the value it provides customers but due to its ability to build recurring monthly revenue (RMR) for solution integrators.

Revenue is a company’s top line which always affects a company’s bottom line or profits. A company that can predict a certain amount of revenue has more confidence and power in its decision making and future growth strategy.

Why is building RMR so ideal? Jason Lowery, business development manager at TAMCO, a technology-as-a-service subscription solution specialist, offers four top reasons why security dealers and systems integrators need to know about why RMR is so ideal and should be a priority to grow their businesses.

# 1 – Known income

RMR allows you to start every month/year with a known income. Recurring revenue provides financial strength to weather the notoriously unpredictable nature of project sales which can evaporate completely in economic downturns.

#2 – Higher margin

The margin is much higher on service sales that generate RMR than it is on a one-time project sale.

#3 – Sell Less. Make More.

Security dealers and integrators do not need as many wins to generate the same level of revenue or margin as one-time project sales.

#4 – Higher valuation

Your business is worth more. If you try to sell your business, buyers will pay as much as 20x more for recurring revenue than they will for revenue from one-time project sales.

These four reasons alone should make RMR a priority for the leadership team of any technology integrator business.

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