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Category: Articles » Technology » Computers » Article » Article Code

IT Service Contracts: Recurring Revenue is Absolutely Critical

One-shot deals are for amateurs. The pros insist on IT service contracts. Otherwise you're going to have a whole bunch of people that call you once or twice a year and in the meantime, you're sitting by the phone waiting for it to ring. You're doing nothing proactive. They're taking none of your advice. They're doing no long-term fixes to make their networks any more reliable. They're doing nothing to improve their ROI or how they're getting back investment on their IT investments. They're doing no kind of strategic planning with you. Nothing's making rhyme or reason, and ... read more

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You're doing nothing proactive. They're taking none of your advice. They're doing no long-term fixes to make their networks any more reliable. They're doing nothing to improve their ROI or how they're getting back investment on their IT investments. They're doing no kind of strategic planning with you. Nothing's making rhyme or reason, and you're just waiting for the phone to ring.

And when they want you, when they say jump, they expect you to be there immediately.

One-shot Deals are for Amateurs.

The pros are going to insist on IT service contracts. Whether you succeed or fail at this next fork in the road is going to come down to whether you have good IT service contracts and whether they are a big part of your business.

So, how can you build a solid business foundation with recurring revenues? There is no basis for knowing that your company is going to be able to continue in operations for the next couple of quarters and the next couple of years if you don't have that recurring revenue in the form of IT service contracts

IT Service Contracts are Everything.

That's the value of your business. The recurring revenue is key. Everyone who's in Virtual IT is to think long and hard about whether they even want to take on clients anymore who don't want to sign their IT service contracts..

The recurring revenue is absolutely critical because those are the clients that are raising their hands and saying I want to have a long-term relationship with you. Those are the ones that allow you to invest and grow in your business.

Without those kinds of clients, it's very hard to plan growth. It's very hard to make hiring decisions. It's very hard to make any kinds of decisions on where your business is going.

The Bottom Line about IT Service Contracts

Think long and hard about only taking on clients who need a service agreement and who see eye to eye with you on the value of one. IT audits need to be as comprehensive as possible.

Copyright MMI-MMVI, Computer Consultants Secrets. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}

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