How MSP’s Can Sell More Recurring Revenue

Kevin StudleyPresident

The Network Pro, LLC

My Journey

• Corporation for 11 years – In business for 5 years.

• Starting MRR

• The Power of Peer Groups – What you must have to succeed.

• Belief – Where does it come from and why is it important?

Reality for most MSP’s

• Profit margins are not what they expected

• Adding new Monthly Recurring Revenue is hard

• Prices are too low

• Achieving financial independence is harder than they thought

Audience Poll

• How important is adding new recurring revenue?

Audience Poll

• How successful are you at adding MRR?

(At least $2,000 - $3,000 each month)

Why…

• …can’t you sell new MRR consistently?

• …do prospects say “sounds great” but not buy?

• …why is growing MRR at the right price consistently so hard???

Driving Force for Recurring Revenue Sales

• Meet the right number of target prospects

• Have the right conversation

Driving Force for Recurring Revenue Sales

• Meet the right number of target prospects

• Have the right conversation

Set Goals

• Start with your life’s plan, then your business plan

• Set an annual MRR goal

• Determine the number of meetings required

• Sales close percentage AND average monthly recurring revenue are important

• Don’t under estimate the amount of activity needed – 10x

The Reality of your lead generation process

• Do you have a plan?

• Do you have a process?

• Do you have someone accountable?

• Do you have goals?

• Do you measure success?

Know your Sales Math

How to develop a lead generation plan

• Set goals

• Assess current situation

• Develop a plan

• Deal with reality

• Execute

Goals

• MRR = FTA’s x Close Percentage x Average MRR

• Quantity of First Time Appointments

• Quality (mix) of FTA’s

• Master of outside sales process (The Right Conversations)

Assess the current situation

• Sales prospect database quantity and quality

• Prospects by category (buckets)

• Current lead generation results

• Resources

Prospect Management

Un-Qualified

Qualified

Warm 250

Hot!

Plan

• Who will drive activity?

• How will you measure activity, results, and success?

• Which lead sources will you focus on?

• Determine both warm and cold lead sources

Warm vs. Cold Leads

• Cold Leads: May not have established a need

• Warm Leads: Have a need

• Returning prospects: Highest close ratio

Warm Lead Generation Sources

• COI’s

• Referral Programs

• Leveraging LinkedIn

• Inside Sales

Inside/Out Sales Model

• Combines Telemarketing and database management

• Improving list quality each day

• Improves yield from all other marketing investments

• Increases “returning prospects”

Deal with reality

• Be realistic about your starting point

• Focus on the right lead sources

• Make sure your plan is aggressive but achievable

• Do not underestimate the amount of activity required to reach your goals

Execute

• Set up your playbook

• Weekly sales meeting

• Review prospect database progress monthly

Increasing MRR

•More leads is not the issue!

Driving Force for Recurring Revenue Sales

• Meet the right number of target prospects

• Have the right conversation

The Question that Changed Everything

Our IT is fine, why would I spend more?

• They always say they are fine

• They don’t know their “real IT cost”

Reframing

• Re-define what “fine” means

• Nothing crashes and my vendor calls us back.

• Reframe “IT support costs”

• The bill from the IT Vendor

Reframing “fine” and “costs”

• Expand their definition of “fine”: Predictable performance, functionality, reduced risk, capital costs, productivity.

• Explain the impact of IT on their biggest cost….

PEOPLE

How do you Reframe?

• Paint a picture

• Attach a value to your picture

• Use cost to your advantage

• Don’t sell technology

• Leverage Your Company Way!

Build a Sales Engine

• Know your sales math

• Have a lead generation plan

• Develop a sales process

Driving Force for Recurring Revenue Sales

• Meet the right number of target prospects

• Have the right conversation

Supercharge Your Success:

• Join a Peer Group

• The Challenger Sale: Taking Control of the Customer Conversation

• Matthew Dixon and Brent Adamson

• The 10X Rule: The Only Difference Between Success and Failure

• Grant Cardone

• The audio book is much more entertaining.

How MSP’s Can Sell More Recurring Revenue

Kevin StudleyPresident

The Network Pro, LLC

kevin@thenetworkpro.net

Linkedin.com/in/thenetworkpro

(714) 333-9620