Lah describes a typical early stage VC-backed startup as having a “3-1-6″ model, in which
30% of revenue is from the core software product,
10% is from support fees, and the remaining
60% from professional services.
a mature product company will often have a “6-3-1″ model which is almost the inverse distribution.
60% from core software product
30% from support fees
10% from professional services
The key takeaway is that your professional services team can have as much of an impact on your customer’s brand experience as your product itself. In fact, for the first part of the engagement, your professional services team IS YOUR BRAND. You’ve got to balance the mix between service and software so that you get the numbers right. But getting the people, process, and culture right is even more important. In the end, if your customers have a positive experience with your services organization, they are likely to buy more products. And if you don’t take the right approach with this important 10% of your business, you could be screwing up the remaining 90%.
See on extensionengine.com