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Leveraging BDR's Recurring Revenue PromiseLeveraging BDR's Recurring Revenue Promise

Whether you are a veteran MSP or a VAR just getting into managed services backup and disaster recovery and business continuity are a great way to add MRR.

CJ Arlotta

April 23, 2013

2 Min Read
Leveraging BDR's Recurring Revenue Promise

Whether you are a veteran MSP or a VAR just getting into the managed services business model, backup and disaster recovery (BDR) and business continuity (BC) solutions are a great way to add recurring revenue. These solutions provide MSPs with both a product and service for recurring revenue. Disaster recovery (DR) and intelligent business continuity (IBC) solutions vendor Datto offered MSPs some insight regarding this topic on the company’s blog. We’ll review the key takeaways.

The best way to sell cloud services, according to Datto, is through a recurring revenue model: an automatic payment is processed each month and you get paid. How can you leverage this approach? Datto suggested the following ways to get started:

  • Build the value — Do your customers understand the value of their IT infrastructure? If not, educate them. Many small and medium-sized businesses (SMBs) don’t understand the true costs of downtime. Show them how valuable their IT infrastructure can be. The more valuable they view their infrastructure, the more likely they will be willing to invest in protection;

  • Bundle the offer — Bundle essential services with non-essential services. Many customers will purchase the whole bundle for just a single item. Instead of lowering prices, add additional items to make your customers feel like they’re receiving additional services ; and

  • Be the expert — Become well-versed in HIPAA, PCI, and SOX because many customers will not be, which provides you with the opportunity to show off your expertise. You’re not just an IT department, you’re an advisor — act that way.

Recurring revenue assists you with stable income, but also benefits your customers by bundling a product with service. How do you sell BDR?

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About the Author(s)

CJ Arlotta

Associate Editor, Nine Lives Media, a division of Penton Media

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