How Dropsuite Provides Monthly Recurring Revenue Increase your profits selling Dropsuite products & solutions. RULE OF 78

Understanding the rule of 78 - aka the golden revenue rule The Golden Revenue Rule, also known as The Rule of 78, is a quick way to estimate the total value of recurring revenue you can generate selling SaaS solutions: Baseline MRR + Gained MRR – Lost MRR = True MRR. Earn 78x your monthly run rate just by adding 1 new client a month with a fixed number of seats/revenue. Your revenue grows exponentially!

Generate a recurring revenue stream for your MSP business Dropsuite can help you accelerate sales, boost your profitability and ARPU, plus create deeper engagement with your customers so they stay with you longer. This charts shows the annual revenue a tyical reseller might earn selling Dropsuite, with moderate annual growth. What a real MSP revenue chart might look like Monthly Sales Assumptions: JAN - Average customer, steady growth. FEB - Small customer, lost seats, then growth. MAR - Failed to sell Dropsuite Backup this mo. APR - Larger customer with steady growth. MAY - Small customer, slow growth. JUN - Larger customer, steady growth. JUL - Added new customer, lost customer. AUG - Failed to sell Dropsuite Backup this mo. SEP - Above average customer, slow growth. OCT - Above average customer, slow growth. NOV - Small customer. DEC - Average customer. Let’s make some money! - Boost your revenue selling Dropsuite backup, archiving and GDPR solutions

Easily double your money by bundling Bundling is one of the easiest ways to “sell” SaaS add on services like data backup. Why? Let’s face it: backup sounds boring. It’s like insurance. Everyone knows they need it for their business but nobody wants to hear the sales pitch to buy it. Since you know your customers need to backup their data, make safeguarding their data easy by bundling backup with every Office 365 seat sold. The chart below shows the typical net profit you might earn from selling a one year subscription to Office 365 ($16.50) versus your net profit if you bundle it with Dropsuite (~$32.00). Office 365 O365 + Dropsuite Email Backup and Archiving Sales revenue $150 / year USD* $198 / year USD Net profit $16.50 USD* $30.90 – $33.30 USD Net margin 11%* 15.6% - 16.8% * Your actual costs/profits/margins on Office 365 may vary, depending on your arrangement with Microsoft

Backup boosts stickiness and sequenced product purchases You can increase your recurring revenue per user (ARPU) by encouraging your customers to upgrade to products and solutions with advanced features over time. Consider Dropsuite Backup. It starts out as a low cost data safeguarding tool. As your customers use it and grow their business over time, some will need email archiving or GDPR compliance features — and they must pay to upgrade — and you will capture a higher recurring revenue stream as a result. This revenue stream tends to be stickier because your customer prefers (knows how to use/sees the benefit) of our product, and the cost of switching in terms of time, effort, and costs outweighs the simplicity of staying with you. Recurring, upgradable and sticky revenue makes your cash flow predictable, measurable, and scalable.