Guest Column | March 27, 2014

To Win Big, The Sales Goals, Objectives Must Align With The Business

Objectives Must Align With The Business

By Justin Crotty, Senior Vice President and General Manager, NetEnrich, Inc.

When it comes to compensating the sales team, MSPs and solutions providers can take any number of approaches. There is no “universal standard” for setting quotas or defining how compensation and incentives are awarded. However, one of the most common mistakes that MSPs and solutions providers make when establishing compensation programs, is the failure to link the sales goals and objectives to what the business is working toward.

Many times, when MSPs and solutions providers expand their businesses to include services and hardware, they overlook compensation structures. Or, some make the assumption that compensation should be the same for both. That’s a big miss and one that can be avoided. Here are a few quick tips: 

  1. Never assume that just because managed services are added to the product and services portfolio, that your sales team will gladly go out and sell these services. The reality is that sales must see a clear benefit to selling managed services, and driving the recurring revenues that come from these services, or they will continue to focus their efforts on what they perceive to be their “bread and butter” — hardware sales.
  2. Make sure that the sales team is being compensated accordingly for the sale of both hardware AND managed services. One way to do this is to set a combined sales quota. For example, should the sales team meet its quota for hardware, but not managed services, or visa versa, they will not be compensated. This incentivizes the sales team to make sure that they are delivering on the overall goals and objectives of the organization by focusing on both the sale of hardware solutions and managed services.
  3. Take a blended approach when compensating their sales team, they will quickly discover that a balance can be struck between the sale of hardware and managed services.

On one final note, MSPs and solutions providers must assign a dedicated leader whose sole responsibility is to ensure that the sales team is meeting its sales targets for both hardware and managed services. That individual should also be ensuring that the sales team is driving the recurring revenue streams generated by the managed services business. The fact of the matter is, it simply won’t do to rely on the sales team to do this on a part-time basis, or fractional basis.

So, for MSPs who want to win big and meet their sales goals, three elements are necessary — the right compensation structure, the right sales team, and the right leadership.

Justin Crotty serves as senior vice president and general manager for NetEnrich Inc. He’s responsible for driving growth and scale for NetEnrich and its partners and customers. Prior to joining NetEnrich, Crotty conceived and launched the services division at Ingram Micro, where his team built and grew the first and most innovative managed and cloud services business in IT distribution. Widely recognized as an IT channel champion, Crotty has held management positions in IT sales and marketing, and began his career as an IT network engineer with IBM.