The Math and Science of Top MSP Sales Producers

© 2015 N-able Technologies, Inc. All rights reserved. 1

The Math and Science of Top

MSP Sales producers

Strategies to dramatically increase recurring revenue


Webinar details

? REC

Length: 60min Questions welcome any time

Recording and slides available

next day


On today’s Webinar

Presented By:

Gary Pica

President, TruMethods

Scott Parker

Senior Product Marketing Manager, N-able


Giving service providers the insights we’ve gained from

working with over 5,500 MSPs

www.trumethods.com

The Math and Science of top

MSP sales performers

Copyright 2010 TruMethods, LLC

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Gary Pica

My MSP sales journey

• Failure

• The quagmire

• Success

• Repeatable success


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• Is selling new MRR your top goal?

• How successful are you?


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Expectations

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MSP Math and Science

• Top sales MSP’s are more efficient

• There is math and science impact your results

• You can make your sales goals achievable


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• FTA’s: The number of first time

appointments

• Close ratio: FTA’s/sales

• Average MRR: Average monthly revenue

per client


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Recurring revenue sales formula

MRR= FTA’s X close ratio X average MRR


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Goal: $36,000 MRR

Avg. MRRClients needed

Close ratio Annual FTA’s

$1,500 24 20% 120$2,500 15 20% 75$3,500 11 20% 55

Impact of Average MRR

© TruMethods, LLC. 2016 - All rights reserved.

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Goal: $36,000 MRR



$2,500 15 10% 150$2,500 15 15% 100$2,500 15 20% 75

Impact of Close ratio


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Goal: $36,000 MRR



$1,500 24 10% 240$2,500 15 15% 100$3,500 11 20% 55

Impact of Sales Math


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Factors impacting Sales Math

Average MRR

• Value Proposition

• Minimum MRR

amount

• Targeting the right

prospects


Close ratio

• Value proposition

• Lead quality

• Sales process

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The impact of price

ExampleAvg.

Seats

Avg.

AISP

Avg.

MRR

MRR with

50 clientsSeats

Right

Customers-

Right price20 $140 $2,800 $140,000 1000

Right

Customers-

Wrong Price20 $95 $1,900 $95,000 1000


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Value Proposition

• What is the value of your MSP offering?

• Can you separate your offering from

others?


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Hey Gary,

Your price is $1,000/month more than the

other two vendors. What gives?

Love,

A skeptical prospect


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Value based pricing

• Technology based pricing: Value built on

features, tools and support

• Value based pricing: Value built on

business impact

• Ability to “reframe clients” by showing

the impact on the big costs in their

business

© TruMethods, LLC. 2015 - All rights reserved

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Predictably Irrational


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Are you a grocery store or bakery?

© 2013 TruMethods, LLC. All rights reserved

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Are you a reseller or MSP?

© 2013 TruMethods, LLC. All rights reserved

• Remote support

• On-site support

• Virtual Servers

• VDI

• Remote Backup

• HaaS, IaaS, SaaS

• Desktop

Optimization

• Disaster Recovery

• Hardware

• Licensing

• Patch Mgmt.

• Anti-Spyware

• Anti-Spam

• Anti-Virus

• Technology

planning

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Your support offering

• Focus on the end result

• People, process, technology and time

• Create a true competitive advantage (Super Power)

• Limit choices and options

• Bundle Services

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Managed Services PlatformRemote Services Technology

| Product Family

MSP AnywhereRemote access & support

MSP ManagerTicketing & billing

N-centralMonitor. Manage. Automate.

Connect in seconds

Cross platform

Support mobile devices

Session transfer

Session recording

Performance dashboard

Ticket management

Customer portal

Password management

Technician scheduling

Customer billing

Accounting integration

Device monitoring

Health & performance

alerts

Drag & drop automation

Integrated patch, AV,

backup

Integrated remote control

Business reports

$49 USD / monthper concurrent user

$49 USD / monthper concurrent user

Starting at

$499 USD

/monthUnlimited sessions

300 devices

Unlimited tickets

Unlimited billing

Monitor 100 devices free

Free business coaching

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SIGN UP FOR A FREE TRIAL

N-ABLE.com

The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-able Technologies, Inc. and its affiliates, are registered with the U.S. Patent and Trademark Office andthe Canadian Intellectual Property Office, and may be registered or pending registration in other countries. All other N-able trademarks, service marks, and logos may be common law marks,registered or pending registration in the United States, Canada, or in other countries. All other trademarks mentioned herein are used for identification purposes only and may be or aretrademarks or registered trademarks of their respective companies.

http://signup.mspanywhere.com/signup/?id=QLxMkPQzNR


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Build your Super Power

Explain how you deliver this

higher level of support

Everybody

• Patch, spy, spam

• Virus

• Monitoring

• Back-up

• Helpdesk

• Cloud related services

Your unique approach

• Best Practices

• Standardization

• Process

• Business Strategy


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Sales Separation

Current process

Their results

Our results

Your Super Power

Reframing

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A FormulaWon member sells a

client at $3,000 / month when they

said no to $1,800 / month

The Right Support Offering


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Set Goals

• Set an annual MRR goal

• Use close ratio and average MRR to determine

FTA’s required

• Focus on Building your value proposition

(Super Power)

• Build a warm lead engine

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Know your Math

Sales Goal CalculatorInput your goals:

Annual MRR Goal $30,000

Average Contract Value (MRR) $2,500

Close ratio 20%

Monthly MRR goal $ 2,500.00

New Customers per Month 1.0

New customers needed annually 12.0

Building your playbook (summary)

Appointments needed annually 60.0

Appointments per month 5.0

Appointments needed per week 1.2

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Warm vs. Cold leads

• Cold leads: May not have established a need

• Warm leads: Have a need

• Returning prospects: Highest close ratio

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Prospect management

Suspects

Prospects

Warm 250

Hot!

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Warm Lead Generation

Sources

• COI’s

• Referral programs

• Leveraging LinkedIn

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Inside sales

• Combines two critical functions

• Lead generation

• Sales database managementSuspects

Prospects

Warm 250

Hot!

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How do you Reframe?

A FormulaWon member sells a customer

an agreement for $2,200 / month when

the competitor can do the “same thing”

for $1,500 / month


www.trumethods.com


MSP Efficiency

• Average MSP spend too much energy to get

mediocre results

• They create a long road to success

• Focus on Value Proposition to dramatically

impact your results quickly

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Which would you choose?

$3,000,000 in Revenue

$1,200,000 in revenue

or

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Which would you choose?

$3,000,000 @ 10% net profit = $300,000

$1,200,000 @ 25% net profit = $300,000

or

www.trumethods.com

The impact of price

ExampleAvg.

Seats

Avg.

AISP

Avg.

MRR

MRR with

50 clientsSeats

Right

Customers-

Right price20 $140 $2,800 $140,000 1000

Right

Customers-

Wrong Price20 $95 $1,900 $95,000 1000


www.trumethods.com


MSP Efficiency

• At any revenue level

• Fewest number of clients

• Fewest number of end points managed

• Fewest reactive tickets

• Fewest employees

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Go!

• Define the most efficient plan

• Build value to match your plan

• Increase sales and profitability

• This is the gold rush!

www.trumethods.com

Copyright 2013 TruMethods, LLC All rights reserved.

The FormulaWon Program

• Build your true Super Power (Value)

• Develop Sales Separation

• Consistently build recurring revenue

• Dramatically increase profit margins

• Ready to achieve financial independence!

Why TruMethods?

www.trumethods.com

FormulaWon

Training

• Over 150 hours of role based content

• 2 Live Webinars / mo.

• Weekly Podcasts

Community

• Member Forums

• Ask TruMethods

• Schnizzfest

• Events

Tools

• myITprocess™

• SMART Numbers

• Business Plan Template

• Sales Playbooks


Results:• Complete Business Plan

• Gain Command of your SMART

Numbers

• Align packaging and pricing

with World Class standards

• Develop your Super Power

• Implement Sales Discipline

• Generate Leads

• Raise your expectations about

what’s possible

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The FormulaWon ProgramFueling MSP Growth

Growth Tracks is $399/month $329On boarding $1,500 NO CHARGE

Special Offer: Expires 9/30/16

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First 10 attendees who email:

[email protected]

Subject line: Sign me up!

$329/month

SPECIAL OFFER: Expires 9/30/16

SIGN UP FOR A FREE TRIAL

N-ABLE.com

The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-ableTechnologies, Inc. and its affiliates, are registered with the U.S. Patent and Trademark Officeand the Canadian Intellectual Property Office, and may be registered or pending registrationin other countries. All other N-able trademarks, service marks, and logos may be commonlaw marks, registered or pending registration in the United States, Canada, or in othercountries. All other trademarks mentioned herein are used for identification purposes onlyand may be or are trademarks or registered trademarks of their respective companies.

Questions




The N-ABLE TECHNOLOGIES and N-CENTRAL marks are the exclusive property of N-ableTechnologies, Inc. and its affiliates, are registered with the U.S. Patent and TrademarkOffice and the Canadian Intellectual Property Office, and may be registered or pendingregistration in other countries. All other N-able trademarks, service marks, and logos maybe common law marks, registered or pending registration in the United States, Canada, orin other countries. All other trademarks mentioned herein are used for identificationpurposes only and may be or are trademarks or registered trademarks of their respectivecompanies.