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Predictable Revenue: Why Aaron Ross’ Model is not suitable for SMEs

Predictable Revenue is considered by many to be the Holy Grail for delivering sustainable business growth. The author of the book “Predictable Revenue”, Aaron Ross, is considered to be one of the leading minds in this topic area. The book describes a model that he developed and implemented whilst working at Salesforce.com, and generated millions in recurring revenue over a three-year period.

Based on our experience of working with SMEs, especially in the digital and IT sector, our view is that his model is not suitable for a small and medium-sized business.

We appreciate some clever elements and methods that his predictable revenue model introduces which are quite useful for some big businesses. However, when it comes to SMEs, our reservation is that the model is quite prescriptive and impractical to implement.

We cover the topic of predictable revenue in more detail in our series of blogs and introduce an alternative, scalable model for SMEs, based on our practical experience.

In the first of three blogs, we highlight the 3 challenges SMEs may face in implementing Aaron Ross’ predictable revenue model:

  1. Time commitment
  2. Cost of implementation
  3. Model based on a successful application in a large business

 

Read the full article on why Aaron Ross’ predictable revenue model is unsuitable for SMEs.

 

 

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