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MSP Monthly Recurring Revenue (MRR) Per Sales Rep: EarthLink Stats
How much new monthly recurring revenue (MRR) does a top-performing MSP sales rep typically generate? Here are clues from EarthLink (ELNK) and MSPmentor.
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EarthLink CEO Rolla Huff discusses Monthly Recurring Revenue (MRR) for MSP sales reps.
How much new monthly recurring revenue (MRR) do sales reps at top managed services providers (MSPs) book each month? MSPmentor found intriguing figures from EarthLink (ELNK), an MSPmentor 501 company. Here are the stats, plus a look at how the ISP has been transitioning from consumer and legacy corporate offerings toward the cloud and managed services.
According to EarthLink’s Q3 2013 earnings call with Wall Street, hosted Nov. 5:
Each EarthLink sales rep generated about $4,600 of new MRR per month in Q3, which is higher than Q2 and nearly double the levels EarthLink saw in 2012.
“EarthLink reps today are more proficient in solution selling, are used to carrying higher quotas and have the technical know-how to educate customers on the benefits of moving to the cloud or transitioning to cloud-based IP voice technology,” according to CEO Rolla Huff.
In Q3, search engine marketing generated $144,000 in new MRR bookings, or $1.7 million in new annualized revenue.
To date, EarthLink has sold $2.7 million of annualized revenue on so-called CloudStacks. Related cloud data centers are running at 10 percent capacity so there’s plenty of headroom for more growth.
Those MRR figures sound impressive. But EarthLink is also a company in transition — shifting away from classic consumer and CLEC services and more toward managed and cloud services. Amid that transition, overall Q3 2013 revenues were $308 million, down from $330 million in Q3 2012.
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