Monthly Recurring Revenue, Cloud and Managed Services: Live Blog

By samdizzy

TruMethods CEO Gary Pica

1. Average Margins: The typical MSP generates a profit margin of about 10 percent to 14 percent, Pica said.

2. Services Math: Top MSPs generate 70 percent of revenue from services, and 70 percent of those services revenues are recurring.

3. Don’t Lowball: Make sure you add recurring revenues at right price and right margin.

4. Go All-In: Bundle as manage services as possible into your offering to make your solution easy to understand and buy. Remove entrance barriers.

5. Lead Nurturing: Move sales leads from (1) suspects to (2) prospects to (3) your warm 250 list and then (4) hot leads.

6. Sales Close Rates: The top MSPS only have a 20 to 25 percent close rate. To have a close rate above 50 percent that means you’re only meeting people who are referred to you.

7. Change How You Ask Questions: Instead asking if IT is running okay, ask if the customer would like the same high-quality user experience forever. Wouldn’t that fab user experience be worth a price premium?

8. Change Your Pitch: Paint a picture involving great customer experience instead of talking about the tools and technologies you’re selling. Then attach a value to your picture.

9. This Is The Gold Rush: “This is it. This is the time. It’s the SMB gold rush. Somebody’s going to help SMBs. It’s either you or someone else.

That’s all for now. More updates from Ingram Micro Cloud Summit later today.