2.5.20 – SSI
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.
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.
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.
About the Author
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.