How Hosting Marketing Automation & CRM Generates Recurring Revenue

Marketing agencies & consultants are always looking for ways to generate recurring revenue for their business. With an increasing number of clients preferring to pay on an hourly or per-project basis as opposed to a monthly retainer, attaining a consistent and predictable stream of income can be elusive for marketing agencies.

As an agency, you have expenses like employee salaries and office rent that you have to pay every month. On the other hand, consulting revenue from your clients doesn’t come in evenly throughout the year. In a weak economy, clients may reduce, or eliminate their marketing budgets completely, leaving you with no option but to lay off employees or dig into cash reserves to “keep the lights on.”

Resell SuiteCRM & Mautic with an Integrated, Turnkey Solution

Mautic and SuiteCRM Reseller Cluster LogoHosting marketing automation & CRM for your clients can help smooth out the bumps in revenue, transforming a consulting business into a software as a service business. Once your clients migrate their sales/marketing data into your platform, the cost and effort to switch to a competitor is relatively high. Moreover, it is common to secure SaaS revenue up-front in the form of annual, or even bi-annual and tri-annual contracts. Having a source of revenue that you can project months, or even years ahead of time, provides your business with the certainty it needs to plan and expand for the future.

Maximize your SaaS revenue with Mautic and SuiteCRM

Switching your clients to a 100% open source marketing & sales stack hosted by you, also has significant savings for them.

A business with 100 CRM users can save up to $180,000 per year ($150 per user, per month) by switching to SuiteCRM, which is a free solution – other than the cost of hosting SuiteCRM. HubSpot Marketing Hub Professional for 10,000 contacts costs $18,000 in the first year ($1,250/month, plus a one-time Professional Onboarding fee of $3,000) and $15,000 per year after that. The subscription cost of Salesforce and HubSpot with the essential features for a typical business can easily reach $195,000 per year.

With our full stack marketing reseller cluster, you can provide your clients with open source alternatives to Salesforce (CRM) and HubSpot (MA) that cost a fraction of the price to host and maintain. SuiteCRM provides almost all of Salesforce Enterprise’s features, with unrestricted access to its API and source code for integrations. Mautic is much more cost effective than traditional marketing platforms because it does not restrict how many contacts or monthly emails you can send.

The gross margin from hosting a marketing & CRM client can be over 96%, bringing in $505 per month ($525 – $20 hosting cost) in consistent recurring revenue.

The wholesale cost to host Mautic and SuiteCRM (combined) for a client with 10,000 contacts/leads is $20 to $60 per month – depending which cloud provider you choose to build your cluster. Based on the retail pricing of other Mautic and SuiteCRM hosting companies, you can price Mautic and SuiteCRM hosting as a package for $525 per month ($425 for CRM, and $100 for marketing). To win customers over from the competition, you can provide unlimited users, email sends, and additional contacts/leads at a low price compared to traditional SaaS vendors. At our suggested pricing, the gross margin from hosting a marketing & CRM client can be over 96%, bringing in $505 per month ($525 – $20 hosting cost) in consistent recurring revenue, net of hosting expenses ($6,060 per client, per year).

The initial cluster with estimated cloud costs of $160/month (12 GB total RAM for app servers, 16 GB total RAM for DB servers) supports hosting up to eight (8) marketing and CRM clients with 10,000 contacts/leads each, potentially bringing in $48,480 per year in gross profit on hosting alone. If you host:

Number of Clients (at $525 per month) Potential Gross Profit (per year)
8 clients $48,480
16 clients $96,960
24 clients $145,440
X clients X clients * $6,060

The best part is our full stack marketing reseller cluster does not have any hard limit how many marketing & CRM clients you can host on the cluster. The cluster can be easily expanded to accommodate more end users, contacts, and leads by a) resizing the virtual servers b) adding additional virtual servers to the cluster. Aside from a one-time, initial investment to have our cloud architects set up the cluster, we do not charge any additional subscription fees when you attract more hosting customers.

Mautic & SuiteCRM, Secure & Optimized with Docker Cluster

Our turnkey cluster powered by Docker, Traefik, HAProxy, and MySQL, with optimized Docker images of the latest versions of SuiteCRM and Mautic, eliminates the technical headaches of starting a marketing & CRM hosting business. It is pre-integrated with the Mautic / SuiteCRM integration, as well as graphical, white labeling tools to give your hosted instances a branded look-and-feel with either your agency or your customers’ logos.

Start reselling Mautic and SuiteCRM in 2 weeks or less.

Nowhere else will you find all of the tools brought together under one roof, without spending tens of thousands in development and testing costs to create a similar solution. For a single investment starting from $6,300 (for Mautic only) or $12,600 (for Mautic + SuiteCRM), you will have everything you need to start your marketing & CRM hosting business – guaranteed.

Financing is available through PayPal Credit with 6 months interest free, on approved credit. We have a tried-and-true platform that our current hosting partners are already using with success.

We currently support deploying the full stack marketing cluster on AWS, DigitalOcean, and Google Cloud in any of their supported regions. If you are a marketing agency based in Europe, we can provide a solution that is hosted in the EU or EEA to help you and your customers meet GDPR data protection requirements. At an additional cost, we also offer options for securing the database servers with encryption at-rest, or using a managed database solution such as RDS.

Backup can be handled by automating EBS snapshots, or using a third-party tool such as SnapShooter with DigitalOcean. Our cluster is designed to be resilient to downtime with around-the-clock monitoring, and automatic redeployment of your SuiteCRM and Mautic containers if a server goes down.

If you want to get in touch with a partner manager to discuss starting your Mautic and SuiteCRM hosting business, don’t hesitate to inquire about our reseller program. We can get you up and running in 2 weeks or less. The sooner you begin, the sooner you can put your marketing agency on a path to positive cash flow by securing a steady stream of passive income from managed, software as a service hosting.