SlideShare a Scribd company logo
Recurring Revenue
for Drupal Shops
Manuel Pistner
Business Track
That's me
Manuel Pistner
CEO of Bright Solutions
Drupal 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/902805910
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/677988464
Project business
is dangerous!
Hard to predict
Hard to scale
Little sustainable company value
Always to many or to few projects!
https://www.flickr.com/photos/ericconstantineau/561857627
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 revenue
makes your business valuable
https://www.flickr.com/photos/tadarammaradas/518594288
Passive income
Build a revenue machine
Don't be the revenue machine yourself
Let your team care about growing
an marketing your machine
http://www.industrialbrand.com/wp-content/uploads/2014/01/AEC-website-lead-generating-machine-marketing-
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 revenue
More projects = More people
Project stops = revenue stops
Project stops = PEOPLE STAY
Scaling project business = stuff up
https://www.flickr.com/photos/26073928@N03/245230449
Transactional
business model
Big 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 model
Smaller 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 values
Care 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 reliably
Reduce „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 service
Grow a sustainable team
Predict revenue for a year
Plan, grow and sleep well
https://smallimprovementsstartup.files.wordpress.com/2015/07/all-
hands_july_2015_public1.jpg
Productize
Solve 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
Resell
Hosting
Monitoring
Update automation
Payment 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 contracts
Sell 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 available
Sell 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
customers
Great 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 success
Cover expense in the short term
Recurring revenue in the long term
Will pay off after one or two years
Maintain a distro
Sell support
Sell integrated services
Sell as SaaS
Distro to transport and market paid
service to niche customers
Panopol
y
Many others at
https://www.drupal.org/project/project_distribution
Iterate step by
step
Test with a landingpage
Get 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 template
Start with small steps
Try to solve your own needs
Be 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/Broadc
ast.svg/2000px-Broadcast.svg.png
Multiple examples -
one process
Drop Guard to automate Drupal updates
ERPAL to build business apps faster
bright-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 revenue
Protect your values (and maintain them)
Use project ideas for innovation
Cooperate 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 build
and operate a support business as Drupal
shop with value for both, the customer and
the 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.
Recurring revenue for drupal shops

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Recurring revenue for drupal shops

  • 1.
  • 2. Recurring Revenue for Drupal Shops Manuel Pistner Business Track
  • 3. That's me Manuel Pistner CEO of Bright Solutions Drupal since 2007 First time Drupalcon speaker @manuelpistner Drupal.org/u/manuelbs
  • 4. 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/902805910
  • 5. 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/677988464
  • 6. Project business is dangerous! Hard to predict Hard to scale Little sustainable company value Always to many or to few projects! https://www.flickr.com/photos/ericconstantineau/561857627
  • 7. Dangerous dependencies Many developers serve few customers Few developers serve many customers Will you survive loosing your most important customer or developer?
  • 8. Value of your company? Assume all people leave Value = Revenue - Expenses Passive recurring revenue makes your business valuable https://www.flickr.com/photos/tadarammaradas/518594288
  • 9. Passive income Build a revenue machine Don't be the revenue machine yourself Let your team care about growing an marketing your machine http://www.industrialbrand.com/wp-content/uploads/2014/01/AEC-website-lead-generating-machine-marketing-
  • 10. 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
  • 11. Why hard to scale? More projects = More revenue More projects = More people Project stops = revenue stops Project stops = PEOPLE STAY Scaling project business = stuff up https://www.flickr.com/photos/26073928@N03/245230449
  • 12. Transactional business model Big 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
  • 13. Recurring business model Smaller 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
  • 14. Care about your own values Care 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
  • 15. Avoid volatility Plan more reliably Reduce „bad months“ Focus on growth https://smallimprovementsstartup.files.wordpress.com/2015/07/all- hands_july_2015_public1.jpg
  • 16. What we wish for Hold customers with good service Grow a sustainable team Predict revenue for a year Plan, grow and sleep well https://smallimprovementsstartup.files.wordpress.com/2015/07/all- hands_july_2015_public1.jpg
  • 17. Productize Solve 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
  • 18. Resell Hosting Monitoring Update automation Payment gateways Integration platforms Add additional value for your clients AND your busuiness http://www.picserver.org/images/highway/phrases/adding-value.jpg
  • 19. Strategic maintenance Sell support contracts Sell update SLAs Sell development retainer Use projects as a strategic tool to grow recurring revenue https://www.flickr.com/photos/mourner/3273137788/
  • 20. How to sell support Keep the project team available Sell 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/
  • 21. Cooperate with customers Great 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
  • 22. Revenue share Get paid for product success Cover expense in the short term Recurring revenue in the long term Will pay off after one or two years
  • 23. Maintain a distro Sell support Sell integrated services Sell as SaaS Distro to transport and market paid service to niche customers Panopol y Many others at https://www.drupal.org/project/project_distribution
  • 24. Iterate step by step Test with a landingpage Get 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/
  • 25. How-to template Start with small steps Try to solve your own needs Be 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
  • 26. 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/Broadc ast.svg/2000px-Broadcast.svg.png
  • 27. Multiple examples - one process Drop Guard to automate Drupal updates ERPAL to build business apps faster bright-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
  • 28. 4 things to take away Use projects to grow recurring revenue Protect your values (and maintain them) Use project ideas for innovation Cooperate with customers to build products Start small and improve continuously!
  • 29. BoF: Support + Maintenance https://www.flickr.com/photos/amazeelabs/ 9965814443/in/faves-38914559@N03/ Right after this session Topic: Brainstorming on how to build and operate a support business as Drupal shop with value for both, the customer and the Drupal shop. ==> Room 128 See you there!
  • 30. 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.