Business models always grow and evolve over the years. From the mass production era of the early 1900’s to the marketing boom of the 1950’s, we’ve seen ideas come and go. Recently, businesses have been focusing on building closer relationships with their customers. This trend is possible because of the growth of technology and our ability to reach more customers with much less effort and expense. As a result of this technology growth, and closer business to customer relationships, we’re now witnessing a new offshoot of business strategies: Recurring Monthly Revenue (RMR).

In short, Recurring Monthly Revenue is a method of eliminating constant customer acquisition. It builds your business on a foundation of monthly, subscription-based services. New technologies, and new ideas such as Software as a Service (SaaS) have made RMR opportunities available to nearly every existing business. Regardless of what industry you’re in, you can almost certainly benefit from Recurring Monthly Revenue.


RMR Provides a Predictable Future Cash Flow

The old method of customer acquisition and product sales only allowed you to look back and try to find purchasing trends. There’s no way of predicting future revenue. With the Recurring Monthly Revenue model, it’s possible to plan out a safe and consistent budget that can be depended on – month after month. Customer acquisition is more permanent when customers are signed up for services that extend for months or years down the road.

RMR Increases Company Morale

When a steady flow of income can be depended on, employees have a stronger sense of job security. When they spend their time acquiring new customers, they know that it’s not just a one-time purchase. Their time and energy will have rewards that will continue to pay off every month. This heightens a sense of company morale and keeps the work atmosphere much healthier for everyone.

RMR Saves Valuable Time

In a typical service-oriented business, there are inherent time wasters, like tracking hours, filling out timesheets, generating quotes, and waiting for customer approval before finally billing the customers. With a business that’s RMR-oriented, many of these issues can be expedited or eliminated altogether. Presenting the customer with specific levels of service and signing them on to a service agreement is all that’s needed. They know exactly how much they’re getting billed each month, and you know the exact level of service you’ll be providing.

RMR Increases Overall Business Value

Every smart business owner knows that there will come a time when they need to start planning an exit strategy. After years of keeping clients happy, building inventory, and increasing value in the community, business owners are all eventually tasked with calculating a formal valuation. Unfortunately, many small business owners find that their business isn’t worth nearly as much as they’d hoped.

Thankfully, there are ways to increase the valuation of a business, and Recurring Monthly Revenue is at the top of the list. Potential buyers are all looking for a sure thing. They want to know that the money they put into purchasing an established business will get a better return than a standard investment. If there isn’t a greater financial reward for purchasing a business, then they might as well just play the stock market. Presenting potential buyers with an ongoing stream of income will immediately increase the value of your business in their eyes. The recurring revenue also increases the overall valuation of the business.

Businesses that are growing and thriving in today’s economy already understand the importance of Recurring Monthly Revenue. Many consumers find this new trend commonplace, and are willing to pay a monthly subscription as long as they are getting adequate value for their money. If you’re not already finding ways of integrating service-based RMR into your business model, current trends suggest that it’s time to start.


To find out more about IOBOT and the AlwaysON platform please contact us or request a demo .