460 - Shifting To a Recurring Revenue Model with Robin Leonard

Episode OverviewRobin was like most Salesforce partners that started their business doing small projects, hoping it would turn into more work. Great for acquisition but not great for partner profitability.After testing different business models, Robin now runs his Salesforce Platinum business predominantly based on a managed service fee - fixed monthly recurring revenue. In the interview, Robin covers;2 challenges mid-markets are grappling with and how to solve them Pressure on EBIT by companies and the role automation is playing The pros and cons of moving to a recurring revenue model - managed services Key timeline highlights: The benefits and challenges of automation in increasing revenue and decreasing business operation costs. They also acknowledged consumers' frustration with current chatbot technology and the difficulty of large organizations in iterating a great chatbot experience due to technical constraints.How Robin's Salesforce consulting business evolved from project-based billing to a managed service program due to the shift towards considering cloud consulting as OPEX instead of CAPEX. Robin's business became a subscription service, the first of its kind in the market. It offered all the necessary services for clients to adopt Salesforce correctly and get value.Managed service fee model and how tailored it to each client's needs. They also talked about the challenges of dealing with procurement and the importance of providing client support and strategic services.The benefits and challenges of shifting revenue into recurring revenue businesses, including the higher valuation and stability it provides, the need to balance revenue shifts, and the emotional impact on employees undergoing digital transformation. They also brainstormed ideas for an app to help bridge the gap between different roles and perspectives in the transformation process.AF Digital's business model, daily sales habits, and Robin's wish to help clients freely without budget limitations. Robin also shared that the best salespeople are the delivery people, and enabling them to sell to clients is key.Pros and cons of moving to a recurring revenue model. They also talked about Robin's experience in CRM marketing technology and his business, AF Digital, which provides consulting and managed services in the Salesforce ecosystem.Robin’s background Robin has had a great experience in the CRM, Marketing, and Technology game. An astute New Zealander with an unwavering passion for leveraging disruptive technology and creative ideas to improve a brand's human experience. Based in Sydney, his business AFDigital, a Salesforce Platinum Consulting Partner, operates across APAC, providing consulting and managed services into the Salesforce ecosystem.Links460 - Show NotesRobin's WebsiteRobin's LinkedInCloud Consultants CollectiveScaling Blueprint