According to Ruth Anne King, maintenance agreements are the key to generating reoccurring revenue. It’s business that you don’t have to resell each time they run out of or need a new widget.
They say the easiest sale is to your existing customer. Instead of creating new products and services to add to the sales list, why not create a program that will create value to your home owner and have it delivered or preformed at a scheduled time and create a reoccurring sale that get charged to their credit card monthly.
If AT&T , Verizon, your insurance company, Amazon, Apple can do it why can’t you?
You can, so let’s get started.
Ruth King is a seasoned entrepreneur who has owned and operated 7 businesses over the past 25 years. Her first business, “Business Ventures Corporation”, began operations in 1981. Through “Business Ventures Corporation” she coaches, trains, and aids businesses in achieving their most desired goals.
Profitability Master, Ruth Anne King, is a seasoned, serial entrepreneur who helps businesses get and stay profitable. Since 1981 Ruth owns or has owned eight businesses including Profitability Revolution. She grows her own businesses as well as coaches, speaks and helps other small business owners reach their goals.
If you are selling your business today, you need to know that the price that others will be will to pay is will be based on the amount of maintenance agreements you have.
In other words, the more reoccurring revenue you have, the more valuable your company is to a potential buyer. So if you have little or no maintenance agreements, it lessens the value of your company.
When people are looking to purchase a company, they are not just looking at the yearly revenue, they are looking at how many loyal customers do you have that do business with you on a regular basis.
Maintenance agreements are the key to generating reoccurring revenue. Its business that you don’t have to resell each time they run out of or need a new widget.
Do you think that might solve some of your cash flow problems? I think it might.
To make it work you have to create value for the customer to want the program.
To get a hold of Ruth Anne King
Her phone number: 770-729-8000 (office)