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How MSP’s Can Sell More Recurring Revenue Kevin Studley President The Network Pro, LLC
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
Linkedin.com/in/thenetworkpro
(714) 333-9620
