Make Ongoing Customer Care Part Of Sales Compensation

Compensation strategies are critical to a successful recurring-revenue model, says Brian Strosser, chief operating officer of DLT Solutions – No. 39 on CRN's Solution Provider 500. In comments provided to IT Best Of Breed through a DLT spokesperson, Strosser believes compensation models should be changed to "reflect ongoing efforts to keep the sales individual engaged with the customer after the initial sale."

A recurring-revenue model requires "two distinct selling behaviors … one to identify, prosecute and close the initial recurring-revenue order; the other to support and grow the existing recurring-revenue customers," Strosser said through the DLT spokeswoman.

At Aqueduct Technologies, based in Waltham, Mass., some sales representatives now earn 20 to 30 percent of their compensation from recurring revenue contracts, according to President and CEO Manak Ahluwalia.