Joel MaloffVice President – Channel Development

Phone.comwww.phone.com

Jmaloff @phone.com

Building Your Business with SIP Trunking and Unified

Communications

InGate SIP Trunking and Unified Communications Summit

February, 2012

IntroductionChannel Sales Partners can

generate significant income selling SIP trunks and Unified CommunicationsThis session takes a sales and

marketing perspective, and specifically, the view from the independent agent.

This presentation contains some material covered in more detail in the online program “SIP Trunking for the Sales and Marketing Professional,” available from The SIP School (www.thesipschool.com).

Building Your Business OverviewSIP Trunks and UCChannel Sales Opportunities

What to look for in a SIP Trunking, Hosted PBX, and/or Unified Communications Channel Program

Identifying YOUR SIP Trunking “Sweet Spot” and what to avoid

Interpreting the customer’s Status QuoUncovering areas of added value

Creating a cost justification/ROI model

Overcoming ObjectionsClosing the SaleKeeping the Sale

SIP Trunks and UCUnified communications

includes mobility, presence, web conferencing, a variety of other solutions, AND voice communications via SIP trunks.SIP trunking is therefore

a subset of the unified communications umbrella.

SIP Trunks and UCUnified Communications can be

multifaceted, complex and confusing to potential buyers.That’s bad for sales.

By focusing on specific benefits and documented ROI, your chances for a sale go up.

SIP trunking can provide the substantiation you need!

Channel Sales OpportunitiesSIP Trunking, Hosted PBX, and Unified

Communications are young industries.Most service providers are less than five

years old.Channel programs are only just now

beginning for these services and the models vary widely.

Channel Sales OpportunitiesWhat to look for in a service provider

Strong existing reputationComprehensive suite of services that address

YOUR marketplaceCompetitive pricingLow customer churn rateClear partner compensation programInteractive web-based tools for partners

Channel Sales OpportunitiesWhat to avoid

Organizations with a limited track record in these specific services

Bias towards specific technologies“Only a Broadsoft-based service provider is worth

considering.”Base your decisions on demonstrable evidence

rather than speculation.There are many excellent alternatives and no one

technology has all of the answers in terms of features, quality, and cost effectiveness.

The SIP Trunking “Sweet Spot”

Each ITSP is different.What is your partner’s

“sweet spot”Number of concurrent

calls?Number of locations?Minimum current

telephone bill? Number of PRIs total

and/or per location?

The SIP Trunking “Sweet Spot”

Number of minutes per month? Incoming?Outgoing?

Local, domestic long distance, international?

Inbound Toll-free?Specific vertical

industries?Specific geographies?

The SIP Trunking “Sweet Spot”

• As a sales organization, knowing who and where to target can be the difference in making your numbers or failing to perform.

Interpreting the Status Quo

Reviewing an actual customer bill for cost savings

Identifying areas of “soft” savings

Finding Added ValueConsolidation of

officesCreation of “Virtual”

presenceDomesticInternational

Cost Justification and ROIIt is easy to assert

cost savings; it takes work to prove it.

“Hard” cost savings come from three primary areas:Usage sensitive call

chargesFixed price services (PRI,

DSL, local exchange lines, et al) used for voice services

Cost Justification and ROIFees and Surcharges

EUCL The End User Common

Line (EUCL) charge is a federally regulated monthly service charge applied to certain local voice service offerings. 

RCRF The Regulatory Cost

Recovery Fee (RCRF) Imposed by some

carriers on business and residential long distance customers

used to recover costs associated with Federal regulatory fees imposed upon these carriers.

Others

Cost Justification and ROICalculating potential

savingsUnderstand current costs by

examining a current bill if possible.Try to make sure that it is a

representative month and not an anomaly.

Identify usage charges and their breakdown regarding local, domestic long distance, and international.

Identify fixed monthly charges for PRIs, DSL, and surcharges.

Cost Justification and ROISome vendors do offer ROI tools for SIP

trunking.http://www.xo.com/forms/campaign/External

Sales/ESIPCalcLP/index.aspx?ListSource=PressRelease071510

Unfortunately, the level of detail may not be sufficient for you – unless you are a salesperson for that company!

Cost Justification and ROIWhat are the challenges with “overview”

ROI tools?Total Number of employees

Minimum of 50Number of Physical Locations

Minimum of 5Percentage of Inter-company callingAsserted savings is 38%!

What is missing from this picture?

Cost Justification and ROIType of Calls: # Calls

Durationin Minutes

Average Call Duration Current Carrier A Current Carrier B Current Carrier C

YOUR Cost/Minute

Carrier ATotal

Carrier BTotal

Carrier CTotal

YOUR Total

Direct Dial Interstate 68,247 104,953 1.54 0.0201$ 0.0500$ 0.0180$ 0.0140$ 2,110$ 5,248$ 1,889$ 1,469$ Direct Dial Intrastate 1,419 1,693 1.19 0.0840$ 0.0490$ 0.0490$ 0.0140$ 142$ 83$ 83$ 24$ Toll-Free Interstate 2,257 4,731 2.10 0.0201$ 0.0150$ 0.0180$ 0.0140$ 95$ 71$ 85$ 66$ Toll Free Canada (call from Canada) 987 2,381 2.41 0.1950$ 0.0490$ 0.0490$ 0.0180$ 464$ 117$ 117$ 43$

International from U.S.:United Kingdom 3,216 4,900 1.52 0.0300$ 0.0300$ 0.0300$ 0.020$ 147$ 147$ 147$ 98$ Japan 1,068 1,777 1.66 0.1381$ 0.0556$ 0.0400$ 0.045$ 245$ 99$ 71$ 80$ Hong Kong 310 408 1.32 0.2100$ 0.0509$ 0.0600$ 0.040$ 86$ 21$ 24$ 16$ Singapore 210 287 1.37 0.1400$ 0.0675$ 0.0400$ 0.036$ 40$ 19$ 11$ 10$ Brazil 93 138 1.48 0.1380$ 0.0503$ 0.0400$ 0.050$ 19$ 7$ 6$ 7$ Australia 63 96 1.52 0.2190$ 0.1520$ 0.0700$ 0.041$ 21$ 15$ 7$ 4$ Norway 39 39 1.00 0.2190$ 0.1363$ 0.0500$ 0.040$ 9$ 5$ 2$ 2$

USAGE SUMMARY # Calls Durationin Minutes

Average Call Duration

Carrier A Total

Carrier BTotal

Carrier CTotal

YOUR Total

Total Direct Dial Domestic 72,910 113,758 1.56 2,347$ 5,402$ 2,057$ 1,559$ Total International 4,999 7,645 1.53 567$ 313$ 268$ 217$

Total Inbound Toll Free 3,244 7,112 2.19 464$ 117$ 117$ 43$

TOTAL MONTHLY USAGE 81,153 128,515 1.58

MONTHLY COSTS 3,378$ 5,831$ 2,442$ 1,819$

PROJECTED ANNUAL USAGE 973,836 1,542,180 ANNUAL

COSTS 40,536$ 69,972$ 29,306$ 21,830$

SIP Trunking Customer Usage Analysis

Cost Justification and ROICalculating potential costs

Identify fixed monthly charges for PRIs, DSL, and surcharges.

Calculate the number of SIP trunks (concurrent calls) and Internet bandwidth required using the spreadsheet on the next slide.

Cost Justification and ROI

Dedicated Circuits Type Bandwidth Number Number of Voice Channels

Monthly $$ Total Monthly

PRI 1.5 mbps 1 23 450.00$ 450$ T-1 1.5 mbps 1 CODEC Dependant 300.00$ 300$ E-1 2.048 mbps 1 30 -$ DSL 512 kbps 0 -$

SIP Trunks CODECBW per call (kbps)

Concurrent Calls

Total BW Required (kbps)

MRC Per SIP Trunk Total MRC

G.729 50 7 330 20.00$ 132$ G.711 80 7 528 20.00$ 132$

SIP Trunking Customer Fixed Cost Analysis

Cost Justification and ROICalculating potential savings and value

Include all costs for all solutionsConsider surcharges and fees such as EUCL

(Approximately $40 per PRI or T-1 monthly) and RCRF (Approximately 3.5% of all domestic and international calling charges)Most ITSPs do not include EUCL and RCRF fees.

Show the monthly total costs, percent saved via SIP trunking, and the estimated annual savings.

Cost Justification and ROI

Carrier A Carrier B Carrier C YOUR SIP Trunking

450$ 450$ 450$ 300$ N/A N/A N/A 132$

3,378$ 5,831$ 2,442$ 1,819$ 159$ 244$ 126$ -$

TOTAL MONTHLY FEES 3,987$ 6,526$ 3,018$ 2,251$ Percent saved by SIP Trunking 44% 66% 25%ANNUAL SAVINGS VIA SIP TRUNKING 20,826$ 51,292$ 9,203$

Monthly Recurring Line ChargesMonthly Recurring SIP Trunk FeesAverage Monthly Usage ChargesAverage Monthly Surcharges and Fees

Total Cost Comparison

Cost Justification and ROISimple tools provide simplistic answers;

business is complex today!

If you want to deliver quality to your prospects, preparation is in order; they will welcome your expertise!

Overcoming ObjectionsConceptual

Internet Telephony is here to stayAT&T asks the FCC to allow shut-down of their

traditional PSTN services in favor of IP Telephony.“… the VoIP access and SIP trunking services market

will continue to build on its downturn-defying 40.1 percent growth in user base and 22.3 percent growth in revenues in 2009.” (North American VoIP Access and SIP Trunking Services Markets, Frost & Sullivan, April 2010)

Overcoming ObjectionsTechnicalFinancialEmotional

Closing the SaleASK FOR THE

ORDER!!!Make it easy.Make it simple.Make it painless.

Keeping the SaleMinimize churn!

Keeping and growing existing customers is more valuable than new sales.

The salesperson’s job is NOT done when the service agreement is signed.Ensure that service is delivered

as sold and when promised.Maintain regular contact to

avoid unexpected churn, expand existing services, obtain referrals, and solicit testimonials.

ConclusionsSuccessfully selling SIP trunking, hosted

PBX, and unified communications services requires a combination of good old fashioned sales skills and knowledge of the SIP trunking environment beyond just surface information and platitudes.

Customers NEED these solutions – you need to be able to help them make the buying decision from you!

For More InformationJoel Maloff, Maloff NetResults

954-263-1306joel@maloffnetresults.comwww.maloffnetresults.com

The SIP Schoolwww.thesipschool.com