As a security dealer, you know that regular revenue from existing customers is far more valuable than a one-off sale. But how can you actually focus your energy on building a healthy stream of monthly recurring revenue (MRR)? Today we’re tackling the question that has alarm business owners thinking big: bigger opportunities, bigger profits, and bigger payoffs.
#1. Transform Products Into Paid Subscriptions
Quick, write down every single offering you provide to clients. How many of those are actual products or one-time purchases, and how many are ongoing services? Now ask yourself: could any of those products be transformed into services that you could charge for on a recurring basis?
That’s the new holy grail in business, and streaming services have already blazed that trail, showing us exactly how it can be achieved. Consider the implications of what they actually did: they successfully transformed what used to be a one-time, physical purchase (CDs, DVDs, etc.) into a monthly subscription. And customers were happy to sign up. Think about it: before Netflix took over the world–and everyone else followed suit–would you have guessed that people would trade ownership for access?
Even if you don’t think a current product or one-time sale would translate to a subscription model, dare to look at the world the way Netflix did. What once seemed unlikely is now ubiquitous. With that in mind, here are some ideas for services you could offer clients on a monthly basis:
Monitoring Services
Monitoring services may already be your MRR bread and butter, and for good reason. Bundling security products with monitoring services for everything from burglar and fire alarms to video surveillance systems is a smart move. You can charge a monthly fee for around-the-clock monitoring and alert services, giving clients peace of mind that they’ll get a prompt response to any security-related incident.
Maintenance Services
Do you already offer regular inspection, testing, and maintenance services? Your customers want to know that their security systems are up to date and running at full strength, and regular service is a part of that. Whether it’s routine maintenance tasks, firmware updates, or equipment replacements, these services should be a cornerstone of your monthly recurring revenue strategy.
Remote System Management
Now let’s take things a step further. Could you provide customers with remote system monitoring, managing their security needs from a central location? You could offer remote troubleshooting, configuration, and software updates, and charge a regular fee for such services as well.
Integration Services
As new innovations emerge and the range of security products on the market grows, customers will need integration services to connect the various systems they buy, from access control and video surveillance to intrusion detection and even smart home devices. For a small monthly fee, you could offer on-call integration services, offering physical integration or phone support for any new systems as needed, so your customer is assured that everything’s working as it should.
Mobile Apps and Interfaces
With a phone in every pocket, shouldn’t your mobile app be on every phone? A mobile app or remote control capabilities can empower your customers to manage and control their own security systems via smartphone or other devices. In return for greater convenience and enhanced features, customers could pay a monthly fee to access these options.
#2. Build On What You Already Have
You may already offer a great mix of products and services, and with just a few tweaks, these could be turned into recurring monthly revenue streams, as well. For example, consider:
Extended Warranties
Do you already offer extended warranties? If not, you could offer warranties for any number of security systems, charging a recurring fee for extended coverage and additional support services.
Bundled Services
Could you combine a number of services into an attractive package? Consider bringing together multiple security offerings suggested above–like monitoring, maintenance, and remote management–to create a deluxe security subscription package. You could offer this package at a preferential monthly rate to incentivize customers to choose the complete solution.
#3. Extend Your Expertise with Add-On Services
You’re already an expert in the alarm industry, and that expertise can be extended beyond your current product or service range. It’s time to identify opportunities for growth that build on your capabilities as a security expert and trusted advisor. If you can think about your business creatively, from your customer’s perspective, you’ll likely uncover a lot of ideas for potential add-on services.
For example, could you expand into managed cybersecurity services, network monitoring, vulnerability assessments, or security consulting? All of these services can be added on for a monthly charge, building your monthly recurring revenue and boosting your bottom line.
#4. Have the Right Systems in Place to Make MRR Effortless
We’ve talked about ideas for generating more MRR, but what about smart systems that can help you collect it seamlessly? Having the right business management software for your security business can mean the difference between effortlessly generating recurring revenue–or driving yourself crazy chasing invoices and keeping track of payments.
Bold Group specializes in solutions designed specifically for the alarm and security industry, and our Managely software solution can help you:
- Automate monthly recurring revenue. Got a new monthly contract? Just use Managely to set it and forget it. Our system will send out recurring invoices on a schedule you define, so you can focus on generating more revenue–not more busywork!
- Offer easy payment options. Get paid faster by giving your customers more options, including auto-pay via credit card or ACH transfer.
- Watching your MRR grow. Use Managely to pull reports and see how your MRR is growing from month to month. What’s trending? Where’s your greatest growth? And where are those overlooked opportunities?
- Increase rates with a single click. Need to implement a global rate increase or an automatic rate increase? Our system can handle that automatically, so you don’t have to update each and every record, each and every time.
Ready to start generating greater monthly revenue? Bold Group can help! Team up with us to try Managely and see what’s possible today.