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BluBØX PSaaS Recurring Revenue Business Model

Typical BluBØX PSaaS Recurring Revenue

System

Revenue

Equipment

RR Range

Small

$10 K

$5 K

$1 - $3 K/Yr.

Medium

$50 K

$25 K

$3 - $10 K/Yr.

Large

$500 K

$250 K

$10 - $100 K/Yr.

Very Large

$2 M

$1 M

$100 - $500 K/Yr.

Enterprise

$10 M

$5 M

$0.5 - $2 M/Yr.

Global

$50 M

$25 M

$2 - $10 M/Yr.

  • 7 Types of Recurring Revenue (RR)

  • Interlocking Recurring Revenue

  • High Quality / No Contract / Annual RR

  • > 99% Customer Retention

  • 2X Company Growth

  • $0.40/yr. of RR per $1 Installed Equipment

  • 4 - 8X Margin > One Time Revenue Margin

  • > Overall Margin Over Time

  • 15 - 30X > Company Valuation

Commentary

BluBØX’s team spent 12 years in a previous company, Touchcom, developing a recurring revenue model that it used to sell direct to end users. BluBØX has evolved this model to be sold by its integrator partners and licensed by manufacturers and large corporations.

Every aspect of the BluBØX PSaaS and Recurring Revenue model has been realized and matured in the field for many years. The financial, technical, operations and strategic results are unquestionable.

Using the BluBØX PSaaS model, the typical recurring revenue that is generated from different size systems is as follows:

Small Systems - $1 - $3 K/Yr.

Medium Systems - $3 - $10 K/Yr.

Large Systems - $10 - $100 K/Yr.

Very Large Systems - $100 - $500 K/Yr.

Enterprise Systems - $0.5 - $2 M/Yr.

Global Systems - $2 - $10 M/Yr.

The model provides for seven types of recurring revenue.

Each type of recurring revenue is interlocked with the other which keeps everything in place.

The model produces high quality, annual recurring revenue that doesn’t require a contract to maintain.

As a result the model yields greater than 99% customer retention.

The model also more than doubles company revenue over time.

It generates an average of 40 cents of annual recurring revenue for every dollar of equipment installed.

The margin created by the recurring revenue is 4 to 8 times the amount of margin generated by the initial sale.

The model increases the overall margin over time.

And the model produces a company value that is 15-30 times greater than one not using the model.

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