Recurring revenue is the Holy Grail for managed services providers. Unfortunately it is the area of the business that most MSP’s struggle with. They either can’t sell enough new clients or they don’t attract the right types of clients or they can’t command the right price. I have devoted the last 20 years of my life to understanding, mastering, and teaching others the keys to growing recurring revenue. I began as the owner of an MSP that grew to over $500,000 a month in recurring revenue and was eventually acquired. For the past 5 years I have coached hundreds of MSP’s on how to grow sales and profitability as the president of TruMethods. Over the next five weeks, I will share five keys that will help you sell more recurring revenue. These are simple actions that you can implement immediately in your business.
5 Keys To MSP Sales #1 — Don't Sell Technology
Typically, customers don't care as much about individual features such as patch management, anti-spyware, anti-spam, backup, endpoint security, monitoring, cloud computing, and Software-as-a-Service (SaaS) as we do. What they care about is how IT systems management impacts user productivity, decreases risk, and keeps costs under control.
In order to effectively sell the idea of managed services to your customers, it is important to focus on the end result of your support offering rather than the bits and bytes of how you deliver it. Show them that being proactive, using automation, and having a complete process to deliver a higher level of performance, functionality, and stability is cost effective.
Their biggest expense is human resources. If you can explain how your technology solution translates into better utilization and productivity of their employees, you can show them in tangible benefits why managed services are so critical.
Gary Pica provides weekly tips for BSMinfo.com readers. Next week, Pica’s column will explore the concept of “Your Company Way” and how to sell it.
ABOUT THE AUTHOR
Gary Pica is the go-to expert for growing MSP sales and profitability. His company, Dynamic Digital Services, was “early to market” in the MSP arena and quickly became one of the fastest growing MSPs in the country. Pica’s company was acquired by mindSHIFT Technologies, and he has since launched coaching and mentoring company TruMethods. The TruMethods business transformation community has provided training and support services to more than 1,000 MSPs in the areas of sales, service delivery process, business planning discipline, and financial benchmarking. Pica is regularly a featured speaker at IT solutions events.