How Much Revenue Are Tech Advisors Making from New Customers?
Data from Channel Futures' latest survey shows that the larger the partner, the more revenue from existing clients.
December 16, 2024
The majority of technology advisors derive the majority of their revenue from their existing client base, according to a new survey.
Channel Futures' Q3 Market Outlook Survey of 53 tech advisors (TAs) found that these partners on average earned 58.4% of their Q3 revenue from existing customers. Moreover, larger partners reported higher ratio of revenue coming from existing clients. TAs of smaller size (less than $1 million in annual revenue) actually earned the majority of their revenue (52.6%) from new logos.
TAs in the size of $1 million to $4.99 million in annual revenue drove 61.75% of revenue from established customers, and TAs of $5 million or more drove 68.6% from established customers.
There's logic in that trend, Mejeticks CEO Robert DeVita told Channel Futures.
Mejetick's Robert DeVita
"This makes perfect sense. The larger TAs have more resources to help uncover additional opportunities. We are seeing 80% of our customers use Mejeticks to source more than 1 technology," DeVita said. "The smaller TAs, as they grow, probably finds it harder to continue to the same level of awareness inside of their existing customer base."
The number reflects the increasing emphasis TAs and tech services distributors (TSDs) are putting on cross-sell opportunities. Cross-sell/upsell was tied for the most commonly cited go-to-market enhancement that agents are making, with 40% of respondents calling it a top priority. In many cases, partners are seeing to convert customers of telecom and connectivity into new different buckets, like unified communications as a service (UCaaS), customer experience, cloud infrastructure or cybersecurity. For example, TSD Intelisys recently launched a cloud software marketplace, seeking to create an easy button for TAs to transact new yet adjacent technologies with their customers.
Intelisys' Ken Mills
“The technology landscape is evolving rapidly, and with it, the potential for advisors to expand their offerings and deliver greater value to their clients," Intelisys president Ken Mills told Channel Futures. "It’s no longer just about selling individual products but about developing integrated technology strategies. At Intelisys, we’re committed to bringing the 10X opportunity to our partners, adding new technologies to their offering and powering flexible routes to market to capture the opportunity in any way an end user wants to consume.”
Read more from our Q3 partner survey
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