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The Consultant Corner with Terry Petrzelka

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The other key metric that I added to be considered a key measure is the growth in annuity revenue. This has to be measured for one cannot depend on competing and winning a significant number of deals to keep the business moving forward year after year after year, but what can be depended on is continued growth of revenue coming from existing clients from current services and/or new offerings to your existing base, which will drive more annuity services revenue to your business. 

What do I consider annuity revenue?  It is subscription renewals, maintenance renewals, support contracts, service revenue from existing clients, revenue from takeover clients.  To be a healthy business a business needs to have at least a 10-15 percent growth in their annuity business as a measure and excellent businesses will be in excess of 20 percent.

Got a question or concern Terry can address? Send it to seth.fineberg@sourcemedia.com

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