Memo to IT Consulting Shops With 1 to 5 Employees
The greatest strength any one person can have is to understand their weaknesses. And if you’re a fledging VAR / IT Consultant that is looking to transition to an MSP, the reason you won’t be successful is that you can’t sell. Let’s have a grown-up discussion about the white elephant in the room. The reality is that you are an IT and tech person. You are really good at it and you’re Left Brained. I get it. None of us are great at everything. You gain your customers through referrals and the good work that you do. You bill here and there, but it’s a lumpy process and you’re always off to the next fire. You have no time to think about building your business.
It is the very reason that MSP Enablement Programs exist. It’s also the reason why companies like Quest/PacketTrap and N-Able and independent consultants like Gary Pica, Stuart Selbst and Robin Robbins have programs to help you through the process of selling managed services. They do great work and their programs are incredibly successful at helping VARs and IT Consultants evolve into an MSP. They provide tools to help you identify service offerings, help you price out the solutions, and even help you get to market. All of these programs work……unless you’re the guy doing the selling.
But back to the thesis of this post. You can’t sell. And guess what? Pica or Robbins or even PacketTrap’s MSP Acceleration Program isn’t going to get you there. It’s because, as the adage goes, you can’t teach an old dog new tricks. It’s your DNA. You are great with servers and routers, but there is no way you’ll ever be comfortable selling. MSP Enablement Programs will help the sales group, and a company create the structure and tools to be successful, but you need to have the people in place first. The right people; and you are not the right person.
So here’s my advice: hire someone who can sell.
Before you invest in enablement programs (including our own), you need to hire a sales person. A hard knocks, cold calling, quota carrying person who can sell. That should be your first investment. Yes, you need remote management tools like N
-Able or PacketTrap MSP and you also need a PSA solution like Autotask, ConnectWise or Tigerpaw, but you need a sales person first. They will make rain.
Steve Goodman is DVP and GM for Quest Software‘s Network Management Group, and he has deep knowledge of PacketTrap MSP. Monthly guest blogs such as this one are part of MSPmentor’s annual platinum sponsorship.
Steve,
First of all, thank you for the shout out. I am honored to be mentioned in the same sentence as Gary and Robin.
I have been to the Quest office and met with your team to discuss how we can collaborate to help your partners grow. I commend Quest for being proactive to the success of their partners and engaging with them.
What we see is a lot of the techies who know the technology and how to fix stuff, but not how to run a business. I tell people all the time, starting a business is easily, but running it “properly” is very difficult. I agree with you on hiring a good sales person is key to the success of any business. No sales, no money! These MSPs need to hire a sales person who is hungry, very hungry. There is nothing worse than a lazy sales person on a salary, who is bleeding you dry for months before you catch on.
Steve, this is a great article and great advice. For you MSPs who are looking for help, I recommend asking your vendors, like Quest software for help. Many vendors will help you sell or point you in the direction to hire the right sales person.
This may come off as a shameless plug, but March 16 – 19, 2011 is our annual business building event Spring Training for Business in Scottsdale, AZ. At this event, we will teach you how to run your small MSP business better, just like the big boys. I invite anyone who is willing to engage their business in 2011 to come to Spring Training for Business. If you want more information about the event, go to the website, http://www.springtrainingforbusiness.com.
All the best in success,
Stu
Steve,
While I appreciate what you are trying to say, I don’t think it’s appropriate for you to comment on what TruMethods (Gary Pica) or others’ programs do or do not do. I can only speak for ourselves but we do “get people there” that have no prior sales experience.
Our program at TruMethods does focus on the business owner first. Is everyone comfortable or capable of doing all of the facets required for sales? No. But most MSP business owners, most of whom were at one time techs, have the capability inside of them to do it. We see this every day with our members.
In fact it is our belief that the business owner / business unit director needs to be the driving force behind the sales engine because it is his/her belief and self image that will drive their company / business unit. Only then do you add resources to support that process as necessary based on their long term goals (prospecting, marketing, sales administration, outside sales, etc.)
I’m not saying you shouldn’t have sales resources at some point. You should acquire those resources at the appropriate time in line with your personal and business goals. But having built an extremely successful MSP and being part of building over 500 other successful MSPs I can tell you that hiring a sales person is not your top priority.
Thank You,
Bob Penland
CTO
TruMethods, LLC.
http://www.trumethods.com
I am the owner of a 4.5 employee MSP. I was employed as an engineer before starting my company. I am not a natural sales person. I am introverted and speaking with people I have never met before raises my anxiety level making me stammer, stumble and otherwise speak less than eloquently. However, I am my company’s sales engine and I bring in new MRR monthly. I made cold calls to get myself meetings and then I went on the sales calls. All of this while still servicing my clients and running the business. During that time I hired a part time-time inside sales person who gets the appointments, but I still go on the sale calls alone.
How does this old dog do it? I was taught a new trick. Through Gary Pica’s TruMethods I learned that sales is a process, and that I needed to be having the right conversations with the prospects I was meeting with. What I say now and what I said before in my sales calls is dramatically different, and so are the results.
This is the most important advice I can give any MSP: What is said during the sales call is far more important than who is saying it.
Hiring someone who is not going to be having the right conversations with prospects is a waste of money that small MSPs cannot afford. Gary Pica’s TruMethods taught me what that conversation should look like and now I can teach that to any sales person I hire when I am ready for that step. For now this old dog actually enjoys making the sales calls and signing up new MRR on a monthly basis now that I have been taught the right approach.
David Cross
CEO
Elevative Networks
I have to agree with Bob and David. I am the owner of a 4 employee MSP and am dramatically changing my business with TruMethods direction. I cant list all the things the program does or doest do but will leave it at this… TruMethods isnt going to get you ‘there’ if your not engaged, being accountable and working hard towards your goals… its your choice! The resources are there and their excellent. If it was easy, everyone would be doing it.
I must agree and disagree with everyones response and the article itself.
Yes, Everyone has the ability to learn how to sell and learn the key traits to close individuals, but the real question is .. What is your success rate?
We all like to think, we can learn a few traits/tricks and soon begin to see results, but the key to growth and success is the ability to effectively close every person you get on the phone or have the best possible odds to do so.
Typically the person best fit to close an individual every time out is the person with the natural Sales ability aka The Sales Guy.
We can bring up the argument that some people are born with this ability, but lets face it, some of us are more inclined to be persuasive than others and have that natural ability to turn a basic phone call into a sales call.
At the end of the day, you can teach an old dog new tricks, but how many times do you have to tell that dog to do the trick before they actually see results. Or better said, How many times will that old dog forget its tricks and revert back to its old ways? Not very effective on closing sales.
Maybe its time for that old dog to realize there are some better fit for that job.
To be a good sales person you truly have to be ruthless, driven, innovative, conservative, persuasive, and trust worthy. (to name a few)
Most old dogs can not be taught these tricks or traits.
Wow, a quality, healthy and very timely debate. (also one of my all time favorites) Why timely? I believe 2011 will be the year where the MSP that invests in sales/marketing will ultimately win. Where do I start……If you are the owner of a 1-5 person MSP doing all the selling, growing your MRR, paying the bills, having fun, and don’t have a burning desire to sell your business anytime soon…..fantastic!!!!, don’t hire a sales person, you’ll only double your blood pressure. If though you are that same owner of the 1-5 person MSP that does want to sell the business in a few years at a good valuation or are twice the size and hit the revenue ceiling without any sales people then yes implement a sales “function”. Why do I say sales function and what is it? A sales person is a body, while a sales function consists of the elements required to make the sales person successful. Hire the sales person without these elements at least somewhat in place, you and the rep will fail guaranteed. After 6 months you’ll end up saying “I hired a sales rep but he/she didn’t work out”. So what are some of the elements you need in place (not 100% or to perfection because 100% or perfection will never happen) before hiring the gun slinger…….
1. A “business value” value prop.
2. A good understanding of your target mkts.
3. A pricing/packaging model that demonstrates value to the customer.
4. Some form of lead generation in place.
5. A comp plan designed to drive activities and sales results.
6. Mgt metrics in place to measure and manage the sales rep.
7. Some decent sales tools in place.
8. Understand and sign up to the fact that that you are equally responsible for the success of the sales rep as the sales rep is.
9. Know very precisely the DNA of the sales rep needed as well as a quality hiring and on-boarding program.
So why is this one of my favorite debates? After 15 years as VP Sales in the MSP space, hands-on I’ve seen, “Hire a sales rep and all problems will be solved” backfire all too often. But conversely I’ve seen “put the success elements in place first then add bodies” work famously countless times. You’re choice.
Todd Hussey
http://www.MSPexcellence.com
This a great debate. In small IT firms, the business owner is the sales person and the driving force, but as well all have seen small IT firms at some point would like to be bigger IT firms. If the owner isn’t good at sales or as David Cross says, an introvert, it may be a good idea to hire a sales person to give your company that push it needs.
As a business coach who works with the owners of small IT firms, it is my job to get them out of their own way and yes it means getting them to go sell. Many times they hide behind some excuse, but in time, they learn to talk to new people and they find a level of success.
Whatever method you use, make sure that when you are selling show the benefits of your business to your prospect or client…in my experience is it the benefits that will build relationships and it is the relationships that bring more sales.
Stuart Selbst
Stuart Selbst Consulting
http://www.stuartselbst.com
This is a very good debate. I agree with Goodman’s comments. I run a small shop and have sat through several of these courses and can tell you that my personal experience is that I needed to learn that I am not a sales person. You can teach me a strong sales process that should work. But when it comes to the power of nuance, voice intonation, body language, and good selling posture, I just don’t have it. I hired my first sales person six months ago and then sent them through industry courses. Guess what? It worked! We are now ramping. I wished I read this post three years ago really.
Hire a sales professional.
I’m a 4-man shop. We’re doing very well but I’d like to do better (the more $$ I make the more I want). I am not bad at sales but am not great either. For whatever reason, I am much better selling to women than men – not sure what that means. Nonetheless, I have considered signing up for one of these programs but, after talking to reps from MSP and TruMethods, I was very turned off. I spoke at length on the phone to a person from each company and neither could sell their way out of paper bag and had nothing new to offer me. They simply asked questions about my business – yes, I am using a RMM, yes, I am using a PSA, etc. I just didn’t see the value in what either were offering: The TruMethods guy said “You just have to buy these videos and you will start selling like never before” – yah, right. The MSP guy didn’t even try to sell me – still don’t know what he wanted as I had already signed up for their premium membership (though I canceled it after talking to him) – he just recommended I start selling a BDR solution – ah, thanks for that nugget of wisdom, how much do I owe you? I get a TON of spam from Robin Robins and, while her headlines are catchy as all get out, not sure if I want to risk a few grand just to learn catchy headlines and other spammy gimmicks. I suppose I am a bit jaded…
Mick,
It sounds like you have look at a lot of the sales and marketing systems out there. All of them from TruMethods to Robin Robbin and MSPU will help you, but you must execute. I tell the MSPs that I coach, the ROI is on you, whatever efforts you put forth, you will get back out. If you want to see results, get to work.
If you are looking for sales training, you may want to look at a Sandler Sales Institute, they have a great program. Whatever you choose to do, I have a feeling you will be great.
All the best for success,
Stu
Over the years I’ve worked with a lots of 1 to 5 man shops and yes, there are some technical business owners that can sell and actually do well selling managed services, however, the simple point is, they’re the exception NOT the rule.
There have been countless articles here on the Mentor outlining the challenges facing MSP’s and sales always seems to top the list. Also, if you look at the agenda at most industry related trade shows… it’s always ‘standing room only’ for seminars dealing with sales.
(Shameless plug time) With that in mind, the approach we take here at Quest with our Acceleration process is a little different because we focus on taking the guess work out of pricing, building and then the sales component of managed services. There’s little value in telling an IT Service Provider to ‘go sell a MSP contract at XYZ’ without first providing them the necessary tools to be successful.
All good business owners know it’s critical to to have the right people in the right positions. I don’t think I’d hire a database engineer to sell PacketTrap MSP for us here just like I don’t know too many MSP’s that would hire me to support their clients databases, however.. I know quite a few that would hire me tomorrow to sell their managed services for them. :o)
Mike Byrne
Director of MSP, Managed Services (MSP) Division
Again, all good input. Achieving and maintaining a low COS(Cost of Sales)model is paramount to success. You must be ready to bring on-board sales people and be ready to help make them successful and manage them properly to achieve a low COS. See my previous comment on this topic. If you are not ready and rely on a new sales rep to figure this all out then immediately your COS is too high. Btw, getting “ready” is very do-able.
Todd Hussey
http://www.mspexcellence.com
I’d like to weigh in that the only thing harder for a reformed tech to do than selling is to manage a sales person.
Todd: Comment #13 made me laugh (in agreement). Generally speaking you’re right true.
-jp
It’s a tough job, but sometimes even left brained people can wind up being good salesmen. The worst thing that a (potential) client is going to do is to say “no”. And once you get your first “no” out of the way, the rest just run off your back.
http://www.mspbusinessmanagement.com/blog/can-cold-calling-work-effective-it-marketing-technique