Show me the money Succeeding with the recurring revenue model Mark Emanuelson Atlantic Technologies.
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Show me the money Succeeding with the recurring revenue model Mark Emanuelson Atlantic Technologies
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Transcript of Show me the money Succeeding with the recurring revenue model Mark Emanuelson Atlantic Technologies.
Show me the money
Succeeding with the recurring revenue model
Mark EmanuelsonAtlantic Technologies
Who is Atlantic Technologies?
We deliver cloud apps
CRMMobileContact CentreERPBI
For leading clients
With our partners
Show me the money
Customer concerns
CIO
Concerned about:• Security• Support• Experience• Installed base
Business
Concerned about:• Growing revenues• Reducing costs• Productivity• Mobile, social, digital
Prebuilt Application
Components
Fewer Developer Hours
Scale toMore Apps
Faster Updates
Subscriptions and perpetual
contracts
Minimize Churn Build Loyalty
Shared revenue and reward
models
LowerTCO
Collaboratewith Partners
Benefits of recurring revenue
Don’t run it same astraditional business
• Financial processes• Watch fixed costs• Order-to-cash• Follow indicators
Pursue a different go to market
Build programs toencourage usage
• Track usage metrics• Measure adoption• Test new features• Spot potential issues
Invest inlead generation
• Innovate marketing• Test drives for leads• Track lead metrics• Reward activities
“Build it and theywill come?”
• Tune your offer• Correct pricing• Sales discipline• Targeted promos
Don’t neglect to develop the market
Customer successand community
• Share success stories• Reward for references• Build user community• Great intelligence
Establish customer success team
• Drive satisfaction• Renewals are key• Ongoing education• Build references
Focus on agiledevelopment
• Waterfall not suited• Rapid iterations best• Release frequently• Collect feedback
Don’t rely on traditional methods
Promote anAPI strategy
• Open API strategy• Easier to integrate• Partner with others• Drives innovation
Leverage cloud development tools
• Not from scratch• Pick a platform• Do what you do best• Outsource the rest
Compensating sales
Pay laterOn subscription
Compensate based on percentage of bookings
over time
+ Optimized cash flow- Least incentive
Pay now Pay later
Some commission up front, and rest based on revenue
+ Good for farmers- Lower sales comp
Pay now On contract
Sales team comp on full contract value or first year’s revenues
+ Good for hunters- Risk in cash flow
Compensating partners
Resale Margin
$$$$Partner buys licenses and
resells to end user
+ Partners pushing sales- More risky for partner
No compensation
0Partner makes
money on services only
+ Easy to admin- Less incentive
PayCommission
$$Partner provided incentive to sell
licenses
+ On-boarding fast- Who gets credit
Keys to success
Pursue a different go-to-marketEasy to provision, easy to upgradeDevelop community and success storiesChoose the right incentive compensationPay close attention to cash flow
ATLANTIC TECHNOLOGIES
Mark Emanuelson
Atlantic TechnologiesTower 42, 25 Old Broad St.EC2N 1HN, London, United KingdomPhone: +44 (0)759 059 2082Email: [email protected]
