Computer service contracts are essential to being able to find the time you need to develop your business.  You can spend much more time doing technical training for yourself or working on the business of acquiring new clients by making sure you have lots of computer service contracts.

The time and money you need to acquire new clients is significant.  If you are doing little jobs for new clients all of the time, you are wasting a great deal of your resources.  By concentrating on computer service contracts you can reduce your total client acquisition costs.  You can also free up the time you need to acquire the type of long-term sweet spot clients you are targeting.

With a computer service contract model, your overall profit margins are going to improve considerably because your client acquisition costs become a smaller percentage of revenue.  Let’s say you figure out that it costs you $500 to acquire a client.  Now, for $500, would you want to acquire a $1,000 a year client, or a $10,000 a year client? 

  • If it cost $500 to acquire a $1,000 a year client, half of your margins are gone for advertising and promotion expenses, and you’re only left with about 50 percent profit.  
  • $500 in acquisition costs on a $10,000 a year client translates to only 5 percent; a whole different ball game there.  
With computer service contracts you’re going to get stronger margins and you can afford to spend more time and money in the right places.  Places like network marketing, seminars, speaking engagements, and targeted direct mail - all of the things that are time-consuming and resource intensive, but that have the highest return rates.  

Bottom Line on Computer Service Contracts
Building your business around computer service contracts gets you the stability and clients you need.  By using computer service contracts you are spending your time on the activities that produce the highest value:  working for and finding sweet spot clients.

In this article, you’ve been introduced to Computer Service Contracts. To learn more about how you can improve your knowledge about Computer Service Contracts, just click here now to get access to a free one-hour audio training program on 5 Easy Ways to Grow Your Computer Consulting Business.