How To Create Monthly Recurring Revenue
Today we’re going to talk about Creating a steady stream of recurring revenue with Maintenance contracts and VIP club memberships.
These memberships provide several advantages to contractors:
1) They create recurring revenue – which is two of the most beautiful words in the English language.
2) They keep you connected to your existing customers, help build your brand.
3) They perform preventative maintenance to help your customers avoid expensive problems in the future.
4) You’re more likely to get any and all future related jobs that arise from these clients.
5) You are more likely to get referrals from these customers.
6) These contracts will add recurring revenue to the slow seasonal months of your business.
In these maintenance contracts, you provide regularly scheduled visits to these clients’ property, where you’ll perform preventative maintenance and checklist inspections.
Those visits will on occasion, uncover additional work that adds revenue to your business and help nip in the bud any issues that might grow into bigger problems for those clients, which in turn saves them money at the same time.
That will impress your clients and earn you improved customer satisfaction and loyalty as well as additional potential reviews and testimonials.
These maintenance contracts and memberships don’t have to be tied to just new product installations which is the ideal door opener to sell such a service.
They can also be VIP Clubs – that you create – where you’ve mapped out exactly what routine maintenance and inspection services you want and should offer, and what you’ll charge for them.
You’ll need to make sure you’re including services customers will want and need and will help them save money in the long run.
You’ll want to make sure you’re pricing those services properly and then discounting them as an incentive for customers to join the program.
These contracts are usually for one year and are priced either annually, semi-annually, or monthly.
You’ll want to get that payment on an automatic debit charge so there’s no bill chasing, which adds additional costs.
You’ll want to make sure your team has done a full property inspection BEFORE offering these VIP Club type of contracts that are not tied to a new piece of equipment to make sure you’re not walking into a property that already needs a ton of work and will suck the profits right out of any such system.
You’ll want to limit the number of visits and discounts available per year.
Specify the exact details of what you want to offer, then triple-check to make sure you’ve priced it right.
Then have a contract attorney examine it for proper wording and terms so you don’t open yourself up to loopholes and huge losses.
Once all that is squared away then you’ll need to train your salespeople and service techs on the details of these plans, and WHY your team wants to sell them, what’s in it for the property owner, and finally how to sell them.
Lastly, you’ll need a great CRM that includes the ability to set up these memberships and allows for the easy scheduling and billing of them, otherwise you might be creating a managerial nightmare.
This works great for all service companies like plumbers, electricians, roofers, garage door companies, and more.
Service Titan’s CRM software works great for these programs so if you’re not already using that platform we recommend you take a strong look at them.
Solar installers can offer solar panel cleaning and/or monitoring services as maintenance plans. Check to make sure the CRM you use can set up these types of systems first.
If you’re not already using or familiar with a CRM, customer relationship management system, go check out episode #3 on that topic.
Good luck out there and create a great day!