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Keith Lubner, Managing Partner/President Channel Consulting Corp | C3
Keith’s Contact Info:
Email: [email protected]
Website: www.channelconsultingcorp.com
Channel
Enablement &
Recruitment
Ecosystem
Acceleration,
Optimization,
& Productivity
Programs
Channel
Marketing
Services
Channel
Strategy,
Metrics, &
Business
Intelligence
Cloud & Mobility Channels
Development & Launches
Singularly FocusedVAR, ISV, Distributor, Retail TECH
Channels
Acceleration FocusedPrograms that spur fast growth
and profits
2000 2005 2011
Where are we at with the "shift" ?
Adoption Curve
Cloud Computing
Public or PrivateTraditional
Data Centers
By 2015, 50 percent of all CIOs
expect to operate the majority
of their applications /
infrastructures via the cloud
Gartner 2011
2013 2015
This diagram represents the acceleration of cloud adoption and execution with the cloud maturity model.
Portfolio
Diversification
Recognizing the
need for multiple
cloud products
/services are
needed in the
partner portfolio
Efficiencies
Recognizing the
need for
operational
efficiency and
organizational
alignment
Revenue &
Cash Flow
Implications
Recognized the
revenue and cash
flow implications
of the Online
Services business
model and have
driven down
overall cost of
sales and
increased
marketing volume
Pre-
packaged
Offerings
“Packaging”
service
offerings for
the cloud –
for both
volume and
velocity sales.
More services
around
business
improvement
Metrics &
Smarter
Analysis
Established a
more metric
driven
approach to
running their
business
using new
measures of
success and
benchmarks
Integrated
Approaches
Implementing
a fully
integrated
delivery
approach –
leveraging
senior and
junior
resources
alike
Cross
Environment
Services
Morphing
services
across on
premise,
hosted, and
online
services
environments
Operations Action Plan
• Must Execute Brilliantly-”Be Brilliant on the Basics”
• Must Plan and Manage Process
Create Project Plan
• Must have Formula for Business Model
• Leverage Business Through Partnering
• Create a Cloud Practice Statement
Increase marketing functions
Go vertical and drive Thought
Leadership
Develop a cadence with marketing
programs
Marketing Concerns & BenefitsMessaging Related
• Security
• Privacy
• Reliability of cloud provider
• Long term costs
• Lack of cloud model understanding
• No budget for transition
• Integrating on premise solutions
• Disruption to business
• Vendor lock in
• Reliability of internal network
• Mobile/Remote access
• Expand capabilities
• Lower total cost of ownership
• More/better features
• Experience with new tech models
• Ease of implementation
• Lower energy costs
• Avoid software licensing/upgrades
• Reduce internal IT headcount
• Outsourcing IT administration
Concerns Benefits
Newsletters, Software Assurance, Product registrations, Loyalty/Reward
Programs
Awareness
Perceptions
Evaluation
Purchase
Advocacy
Use
Traditional MarComm
TV, Radio, Print, Sponsorship
Print, Retail support, Events, Demos,
Newsletters
3rd party advocacy, Conventions, Partner/customer briefings, Retail
support
Retail support, Partner referral,
Pre-installed OEM, Time-bombed
upgrades
Books, Retail support, Product support,
training centers, demos, Product outreach
to communities / newsgroups
Hierarchy of Effects
Media display, In-stream video, mobile video
Search engine advertising & optimization, blogs, social networks, review sites, mobile
Customer toolkits, Demos, videos, landing sites, promotional emails, live events, podcasts
Affiliate and partner sites,
commerce site, location-based
Services, mobile
Newsletters, how-to sites,
communities, help sites, games
Digital MarComm
Newsletters, reminder emails,
Communities, Advisory Councils
Customer Analysis
Determine A, B, C
15% of clients= make up 65% of sales=A
20% of clients= make up 20% of sales=B
65% of clients= make up 15% of sales=C
Determine demographics of A & B’s
What are your plans for increasing the competitive nature of your organization?
What changes do you see in your business and marketplace in the next 24 months?
If you had a magic wand, what would you change in your organization?
Why do your clients do business with your organization?
http://www.crn.com/news/channel-programs/240149808/turning-your-salespeople-into-consultants-art-
science-or-bull.htm
Ken Thoreson, President Acumen Management Group, Ltd
Ken’s Contact Info:
Email: [email protected]
Website: www.AcumenManagement.com and www.SalesManagementGuru.com
Top 50 Sales &
Marketing
Influencer's
2014
Partner
Business
Builder
Programs
Workshops
Keynotes,
Workshops,
Consulting
Services
Strategy,
Business
Management,
Sales
Leadership
The Sales Mgmt Guru Book
series, 5- DVD’s,
Sales Mgmt Tool Kit,
Peer Groups
Singularly FocusedVendor, ISV, Distributor, Partner
Acceleration FocusedPrograms that spur fast growth
and profits
Perform quarterly on a set number of key accounts. This should include:
Plan to open new accounts2
Develop strategy and five tactics3
Plan to penetrate further1
Determine what you know4
Break up Prospect List into
Groups of 20
Select Two
Campaigns
Access
Partner
Marketing
Central
Develop a
list of Best
Prospects –
”A & B”
Sales Compensation
• Cloud Considerations
• Compensation Planning is Strategic
• Must Consider Organization’s Maturity Model
• Consider Assumptions
1. Appropriate to Product Life Cycle Stage
2. Supports Tactical & Strategic Company Goals
3. Measurable Criteria
4. Fixed & Variable + Easy to Manage
5. Complex Enough for the Real World
6. Stable with Built in Flexibility
7. Protect Salespeople First with Limits
8. Value Contribution not Degree of Difficulty
Characteristics of Good Compensation Plans
1. Motivate all Salespeople – As, Cs & Fs
2. Focus on Results nor Tasks
3. Avoid Internal Competition
4. Allow Salespeople to Plan in Advance
5. Do Not Change Quicker Than Can Be Managed
6. Permit Above Avg Performance w/o Penalty
7. Not Slower to Change than Company Goals
8. Logical & Fair – Make Sense to the Customer
Compensation Considerations
Stage 1
New Product
Stage 2
Fast Growth
Stage 3
Penetration
Stage 4
Saturation
Sales
Growth
Time
Sales Organizational Issues
• Inside Representatives
• Outside Representatives
• Sales Support/Acct.
Management
• Sales Management
• Team Plans
• Technical Support
%
Comm Sales Range (000s)
Commission Structure on Services
Quarterly Sales $0-to
Commissions Level 1 $ 2,550.00 3.0% $ 85,000.00
Commissions Level 2 $ 4,050.00 4.0% $ 80,000.00
Commissions Level 3 $ 10,250.00 7.0% $ 100,000.00
Total Potential Commissions Paid $ 16,850.00
Total Sales for Period $ 265,000.00
Yearly Sales $ 1,060,000.00
Commission in Product Margin Dollars
(assumed margin) 15.00
Commission Level 1 $ 100.00 4.00% $ 2,500.00
Commission Level 2 $ 500.00 10.00% $ 5,000.00
Commission Level 3 $0.00 13.00%
Total Potential Commissions Paid/Monthly $600.00
Total Margin Generated for month $ 7,500.00
Annualized Sales $ 1,660,000.00 $ 600,000.00
Compensation on Services Revenue
and Product Margin
Level 1 Maturity:
Characteristics:
New to Cloud, Less than 50 seats installed:
Strategic Objectives:
Learn the business model, opening new markets or net new accounts, simply offering Cloud solutions
Cloud Sales Compensation Concepts:
Pay a monthly bonus on a set number of seats sold. This helps you set a goal to measure your organizations ability to market and sell Cloud solutions. Simple example: 300 seats=$1800 bonus
Level 2 MaturityCharacteristics:
Focused on building a velocity business model, sales team is trained, On- going marketing programs, minimum of two cloud practice offerings
Strategic Objectives:
Cross Sell/Up sell plan, acquiring net new clients by “X”
Sales Compensation Concepts:
• Monthly commission based upon a quota for total Cloud Revenue (license and services)
• 6% on gross revenues/license fees based upon a 12 month agreement: 50% at time of order, 50% at 6 months
• 3% on renewals on the second year only
Level 3 Maturity Characteristics:
Multi Cloud Practice including HCS, Sales structure is based for both volume and velocity model uses Thought Leadership marketing and focused on Vertical market
Strategic Objectives:
Win aggressive market share, become Go-To HCS Cloud partner
Sales Compensation Concepts:
• Monthly commission based upon a quota for total Cloud Revenue (license and services)
• 6% on gross revenues/license fees based upon a 12 month agreement 50% at time of order, 50% at 6 months
• 3% on renewals on the second year only, 100% at renewal
• QTD Objective focused on Services Revenue: Pay % if the QTD target is attained. This plan could also be a Team Bonus if the entire sales team achieved a certain Cloud Services revenue number.
Level 4 Maturity QTD commission plan based upon accelerated values based upon seats license values with a commission on Professional services and with a “kicker” based upon attaining a Professional
Services quota/target-Team Based
Example: 0-1000 Seats4%
1001-2000 Seats 6%
2001-3000 Seats 9%
• Professional Services $100,000 Quota * 9% with 2% “kicker”
Get Started with…
2 Engage Partner Benefits1 Sign up for the Marketplacewww.Elevate.IngramMicroCloud.com
3Attend the Tuesday “Trainer
Series” webinars
Begin transacting on
the Marketplace4
