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Reasons Why Your RMR Isn’t Improving

Jan 23, 2020 8:00:00 AM

You might have the best sales people in your industry and even a thriving business, but experiencing less than stellar recurring monthly revenue. Why does this phenomenon occur? It’s actually quite simple. Below we’ll examine a few of the reasons why your RMR isn’t as great as it should be, and how you can fix those minor issues.

Commission

One of the main reasons companies don’t see their RMR improving is because of the commission structure that is in place. It’s much easier to take $2,000 now than it is to take $150 dollars over the next 48 months, which the latter ultimately is a much higher pay out. It is hard to look at commission spread out over a few year period, especially considering that most people don’t expect to be with their company for that long.

The fact of the matter is that sales professionals in general will look at a position with the highest possible payout to maximize their income. We all do to some degree. This is why it is important to set up a commission structure that is in-line with the RMR structure of the company. If there is a way to set up the commission to pay all of the commission up front, this will help keep your sales team engaged and motivated.

Management

If your company wants your sales team to get behind an RMR commission plan, your management team needs to completely back it as well. Your sales team isn’t going to follow through if management shows an unwillingness to stick with the plan when the going gets tough.

If you are implementing a new RMR sales plan and compensation system, it might be tough at first for your sales team to adjust. That is why it is important to have management in place that is willing to stick with the program, even during strong headwinds. If the boss isn’t committed, why would the sales team be? This also means that management should stay consistent even when the market isn’t cooperating, or a sales employee is refusing to change their ways. Sticking with it is the best way to succeed.

Selling Services

Often times, sales people aren’t nearly as prepared to sell services as they are a product. That’s why training your employees to sell services as well as products is imperative. Making sure they know the ins-and-outs of cloud-based services, which ultimately will be the end-all for service hosting. This not only will help your sales team and company succeed in the interim, but also future proof your company for the full shift to cloud-based services.

Beyond fixing these issues that may be hindering your company, you can also check out these helpful tips on how to improve your RMR. Help your business succeed, and let AvantGuard be the third-party monitoring company to provide the tools to grow your security business.

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