It’s All About Recurring Revenues

The most significant partner opportunity in the ERP marketplace is to create a consulting role as a trusted advisor to your customer. Your goal is to  be looked upon by the customer to present multiple options and help the customer think long term about what solution is best.

Not all customers want this. Become ok with cutting the “C” and “D” customer loose.

VARS can safely assume that publisher direct “selling” will be outbound telemarketing to capture a name and pull in as many “Kung Fu” demos as possible — however the key is that this selling will only be around one preferred solution.

And it’s not consulting – it’s selling.

VARS can successfully compete by concentrating on  a consulting role.

What this means:

  • The era of selling software licenses is coming to a close (or a steep decline) for most VARS
  • Maintenance margin will soon slow and then stop for all but a few select partners
  • If you don’t have a recurring revenue relationship with your customer(s) (support, upgrades) – where you are regularly adding value – you best get one now
  • Recurring revenue <> you send a bill out for someone else (ie. software publisher)…
  • Recurring revenue = you send a bill out for your  recurring value added services

If this is an uncomfortable concept for you and you’re unwilling to change you should find a salaried position with a customer looking for a technician.

If you think recurring revenue is not important and you want to stay pay-as-you-go or call-me-if-you-need-15-minutes-of-help – good luck.

If you think complaining to a software publisher is going to save you – get in line – and good luck.

If you think another software publisher is going to roll back time and transport you to the “easy” days of the 1980’s – good luck.

Recommendation: Get yourself into Firm of The Future & Consulting Academy

About admin