New sales force incentives are based on annual recurring revenue of sales, for example.

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"We expect that they will eventually serve both police departments, military forces and civilians all over the world, and that the recurring income from sales of 'ammunition' will make this a very profitable company, " says Lutts.

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The significant attraction to companies producing glucose monitoring devices is that the business model is a classic razor-and-blade concept as an overwhelming portion of sales by these companies consists of the recurring test strips.

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And once these sales are made, the customer becomes low maintenance and recurring.

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