Cloud MSPs and VARs: What’s Your Optimal Revenue Plan?

Recently, a provider of secure, Cloud-based content management solutions announced a new threshold in required annual revenue from its network of MSPs and VARs. If threshold is not met, partners can still gain revenue via one-time referral commission.  The shift in policy is common to companies that have the good fortune to be growing, and need channel partners to ratchet up results… even though said growth is due in large part to MSP and VAR performance and expansion.

This provider’s reseller program, according to some channel partners, now requires partners to sign up for a yearly revenue target based on company size and customer demographics.  What’s unclear is how, or if the provider solicited these metric data points from the MSPs and VARs, or pushed them outward, based upon market research and sales trends. Also, how competitive and sector factors weighed results.

A solutions provider that’s channel-friendly and acknowledges that its MSP and VAR partners will haul in the majority of revenues, and administers a profitable, simple compensation program will retain channel partners who deliver increased revenue. The sticking point in channel management relationships comes when the provider is poised for growth, and needs to ensure its partners can ride along, at new levels.

The compensation should always reflect effort expended by both sides — who will carry added burden of back-end billing and administration vs. bag the sale and sprint to the next kill.

It’s up to the MSP or VAR to know its productivity sweet spot, then slot into the appropriate compensation method.  Is the staff most productive only in quick-turn, hunter-gatherer mode?  Or does it thrive when delivering multi-faceted, turnkey services. Pick the compensation program that’s right, and everyone will thrive.

There’s a great example of this scenario at Joe Panettieri’s TalkinCloud blog; check it out!

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“Social Media Means Business”

As an authority on automating successful selling, salesforce.com can’t be beat. They’re also at the center of the brainstorm on how well social media really contributes to successful sales and customer service. salesforce.com vp Peter Coffee spoke at last week’s Ingram Micro Summit. A couple of thought-provoking ideas from Coffee that bode well for every business, from sole proprietor to Fortune 100:

Selling Tools Unite to Form One Social Body

  1. “Social Media Means Business”, cited Dell’s 22,000+ social media interactions daily
  2. “Moving Toward Zero, One and Infinity”, customers marching toward:

    • Zero on-premise infrastructure with zero acquisition cost, zero adoption cost and zero support cost
    • One coherent environment rather than software stack
    • Infinite scalability.

salesforce.com’s position is especially valuable, given their commitment to partnerships with ISVs, who develop social media-centric tools; and to MSPs, whose toolkits help realize the 2 ideas above.

btw, I’m working in an office where Facebook access is blocked (really not a bad idea).  As a consumer products manufacturer, we actively use social media, so we have to step out back and fire up our smartphones to see how they’re performing … joining the fraternity of smokers. WiFi and ashtray, one convenient location!

(Thanks to Joe Panettieri at TalkinCloud, whose blog post covered Peter’s talk. Image courtesy salesforce.com)

MSP and VAR Channels Seek Slice of the Cloud

This month, MSP and VAR channel experts are tuning in to news and events from Microsoft and Ingram Micro, as both define latest Cloud solutions and the roles their trusted partners will play in deploying each.

Microsoft’s running an online ad campaign titled Cloudcycle: A Hybrid Model, illustrating with vivid clarity the features and benefits and key concepts of cloud solutions.  They’re readying for a 28 June Cloud Suite launch, and a worldwide partner conference next month in Los Angeles.

Ingram Micro just wrapped up a partner summit in Phoenix, wherein they presented tools and programs to MSP and VAR partners.

The questions for MSPs and VARs for both companies surround how much freedom they will have in packaging and billing these partners’ strong new programs, and how much of the profits they can claim vs. share. Even though channel partnerships are now the largest revenue growth source for technology providers, when it comes to sharing the Cloud isn’t always Open Skies.

SaaS Market Expansion Strategies: Part4

Hanson Marketing is leading a market expansion project for a SaaS solutions developer. (View Part1 here and Part2 here and Part3 here) We’re seeking international markets across many verticals wherein SaaS is in rapid growth mode, and are focusing our efforts on the Managed Services Provider partner model. But first, it’s roll up the sleeves and create marketing messages that will resonate well with new target customers, and populate a SEO-savvy, re-designed website.   Success stories and industry-specific solution descriptions will form the meat of the new website.

We’re also gauging the viability and influence of our target industry trade associations and analyst groups: namely, those which are in orbit around the world of Managed Services Providers (MSPs)

Finally, the client is bringing aboard an account manager, to cultivate new business from existing revenue from trusted, current partners.  That’s the low-hanging fruit I discussed in

SaaS Market Expansion Strategies: Part4

Hanson Marketing is leading a market expansion project for a SaaS solutions developer. (View Part1 here and Part2 here and Part3 here) We’re seeking international markets across many verticals wherein SaaS is in rapid growth mode, and are focusing our efforts on the Managed Services Provider partner model. But first, it’s roll up the sleeves and create marketing messages that will resonate well with new target customers, and populate a SEO-savvy, re-designed website.   Success stories and industry-specific solution descriptions will form the meat of the new website.

We’re also gauging the viability and influence of our target industry trade associations and analyst groups: namely, those which are in orbit around the world of Managed Services Providers (MSPs)

Finally, the client is bringing aboard an account manager, to cultivate new business from existing revenue from trusted, current partners.  That’s the low-hanging fruit I discussed in

 

SaaS Market Expansion Strategies: Part2

Hanson Marketing’s latest project – finding new markets for a provider of SaaS-based data management solutions – has entered phase two, wherein we have selected Managed Service Providers (MSPs) as the optimal new customer profile. In the global MSP sector, we view highest revenue growth potential, and most opportunity to extend the company’s credentials as subject matter expert on the crucial issue of data governance in the Cloud.

MSPs are target customers themselves, as are their clients; and many have developed industry-specific expertise (i.e., healthcare, financial, research) They’ll be interested to know about our client’s proven success in these and other sectors.

Up next?

  • Product Positioning – relate the existing product line’s robust performance in the Cloud, through data sheets and white papers that are driven by customer testimonials
  • Public relations – extending the reach of the client’s deep industry experience and early entry into Cloud-based data management solutions. Speaking engagements, guest editorials, sponsorship at MSP industry gatherings
  • Web Assets – Formation of a new web presence, via a new site that will co-exist alongside the company’s existing, product-centric website. Here, we introduce three elements vital to any successful website: focused URLs and page descriptors, customer-driven success stories by sector, and SEO-friendly words that win the attention of decision makers in the global MSP sector
  • International expansion – defining a short list of 3-4 new international territories, in which there are well-established MSPs and relatively few obstacles to entry by a foreign provider. As a US-based software developer, our client has a strong advantage in any international market they choose to enter.
  • Stay tuned as we delve into these and other market-building elements, in our quest to successfully re-position our client in as an expert solutions provider for MSPs, worldwide. (View Part1 here)

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