Knowing how to predict the expenses and income of a business with a good accuracy rate is one of the most sought-after skills for professionals working in management positions.
After all, this gives the company better conditions to plan and carry out actions focused on growth.
In addition to all the experience and knowledge of decision makers, it is essential that the business model contributes to good sales performance.
Therefore, a recurring revenue scenario is one of the most favorable.
In this post, we are going to understand why having predictable billing is so important for companies.
We will see what its main advantages are and how the technology segment has taken advantage of line data it by providing Software as a Service (SaaS).
Happy reading!
When we refer to recurring revenue, we are talking about a business's ability to sell continued access to a service provided over a certain period of time.
We can also call it a signature model.
This time window will depend on how the company decides to collect from its customers.
There are cases where the consumer pays monthly installments for as long as he wants to enjoy the solution, being free to interrupt the payment, and consequently, cancel the service whenever he wants — without penalties or additional fees.
The idea is to establish a long-term relationship with the base, which really generates benefits for the clients and does not keep them tied to a contract.
How to achieve recurring income and why is it important?
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