recurring revenue for drupal shops
TRANSCRIPT
Recurring Revenue for Drupal Shops
Manuel Pistner
Business Track
That's meManuel Pistner
CEO of Bright SolutionsDrupal since 2007
First time Drupalcon speaker@manuelpistner
Drupal.org/u/manuelbs
What to expect
„Why recurring revenue?“
„How to grow recurring revenue?“
First steps for you to start growing recurring revenue for your Drupal shop
https://www.flickr.com/photos/planeta/9028059107
Good and Bad revenue? You can grow to death
In the end profit counts
How much revenue remains
Say NO to bad revenue!
https://www.flickr.com/photos/light_seeker/6779884645
Project businessis dangerous!
Hard to predict
Hard to scale
Little sustainable company value
Always to many or to few projects!
https://www.flickr.com/photos/ericconstantineau/5618576278
Dangerous dependencies
Many developers serve few customers
Few developers serve many customers
Will you survive loosing your most important customer or developer?
Value of your company? Assume all people leave
Value = Revenue - Expenses
Passive recurring revenuemakes your business valuable
https://www.flickr.com/photos/tadarammaradas/5185942886
Passive income
Build a revenue machine
Don't be the revenue machine yourself
Let your team care about growingan marketing your machine
http://www.industrialbrand.com/wp-content/uploads/2014/01/AEC-website-lead-generating-machine-marketing-automation.jpg
Why unpredictable
?Always unique
Fixed start and end
Big ONE TIME revenue
Big project revenue doesn't allow to predict the future
https://www.flickr.com/photos/light_seeker/6779884645
Why hard to scale?
More projects = More revenueMore projects = More people
Project stops = revenue stopsProject stops = PEOPLE STAY
Scaling project business = stuff up
https://www.flickr.com/photos/26073928@N03/2452304492
Transactional business
modelBig one-time revenue per client
No sustainable revenue
Hard to plan, grow, predict
Start every year from ZERO
https://www.flickr.com/photos/mo_ie_us/5275319814
Recurring business
modelSmaller revenue but recurring
Win customer ONE time, earn for a lifetime
Grow with new customers
Start new year based on last years success
https://rasica.files.wordpress.com/2012/12/printing-money-288.jpg
Care about your own
valuesCare about your own products
Invest in the short term
Benefit in the long term
Build your own product, build sustainable value
https://www.flickr.com/photos/limaoscarjuliet/154567026
Avoid volatility
Plan more reliablyReduce „bad months“
Focus on growth
https://smallimprovementsstartup.files.wordpress.com/2015/07/all-hands_july_2015_public1.jpg
What we wish for
Hold customers with good serviceGrow a sustainable teamPredict revenue for a year
Plan, grow and sleep well
https://smallimprovementsstartup.files.wordpress.com/2015/07/all-hands_july_2015_public1.jpg
ProductizeSolve ONE problem that MANY have
Sell it as a service (SaaS)
Use your cusomter base as innovation pool
(Don't disrespect NDAs)
https://www.flickr.com/photos/gerlos/3119891607
ResellHosting
MonitoringUpdate automationPayment gateways
Integration platforms
Add additional value for your clients AND your busuiness
http://www.picserver.org/images/highway/phrases/adding-value.jpg
Strategic maintenance
Sell support contractsSell update SLAs
Sell development retainer
Use projects as a strategic tool to grow recurring revenue
https://www.flickr.com/photos/mourner/3273137788/
How to sell support
Keep the project team availableSell reliable dev time
Sell security update reaction time
Support fee is like an ensurance fee for your customer
Don't close deals as shown in this video :-)
https://www.flickr.com/photos/mourner/3273137788/
Cooperate with
customersGreat idea but little money?
Build a product in cooperation
=> Your customer is your first product's customer
Don't be shy, this works great!
https://c1.staticflickr.com/1/40/77346889_91ec153c36.jpg
Revenue share
Get paid for product successCover expense in the short term
Recurring revenue in the long term
Will pay off after one or two years
Maintain a distro
Sell supportSell integrated services
Sell as SaaS
Distro to transport and market paid service to niche customers
Panopoly
Many others athttps://www.drupal.org/project/project_distribution
Iterate step by step
Test with a landingpageGet first interested customers
Build, Meassure, Improve your product
Build your product with your customers and learn learn learn
https://www.flickr.com/photos/spidermandragon5/2922128673/
How-to templateStart with small steps
Try to solve your own needsBe open to find real world problems
Cooperate
If you fail, LEARN and fail often to improve using SMALL steps
https://upload.wikimedia.org/wikipedia/commons/d/d9/Otto_is_going_to_fly.jpg
Deliver more efficient
After finding out what REALLY works, AUTOMATE
Consider making your automation available for others
https://upload.wikimedia.org/wikipedia/commons/thumb/d/dc/Broadcast.svg/2000px-Broadcast.svg.png
Multiple examples - one
processDrop Guard to automate Drupal updates
ERPAL to build business apps fasterbright-guide.de (cooperation)MyFoam.net (cooperation)
DON'T LEAVE your core competency!DONT'T STEAL ideas!
test it ! landingpage ...
cooperatedevelop
improve succeed
Idea to change the world
4 things to take away
Use projects to grow recurring revenueProtect your values (and maintain them)
Use project ideas for innovationCooperate with customers to build products
Start small and improve continuously!
BoF: Support + Maintenance
https://www.flickr.com/photos/amazeelabs/9965814443/in/faves-
38914559@N03/
Right after this session
Topic: Brainstorming on how to buildand operate a support business as Drupalshop with value for both, the customer andthe Drupal shop.
==> Room 128
See you there!
Sprint: Friday
https://www.flickr.com/photos/amazeelabs/9965814443/in/faves-
38914559@N03/
Sprint with the Community on Friday.
We have tasks for every skillset.
Mentors are available for new contributors.
An optional Friday morning workshop for first-time sprinters will help you get set up.
Follow @drupalmentoring.
