Regardless of the industry, great sales rainmakers are a rare, but valuable breed. These top producers, typically the founders, owners, or head executives at small to mid-sized business, are pros at pitching their company’s value, building rapport with prospects and cementing new relationships, and ultimately closing the sales deal to acquire new customers. For MSPs, the "Rainmaker Sales Model" involves some rewards -- and some risks. Here's an overview.
No doubt, the Rainmaker Sales Model is becoming more popular in the IT channel -- particularly in the SMB managed services space. A number of leading coaches and consultants in the IT industry are promoting the advantages of the Rainmaker Model and are teaching MSPs how to employ this sales methodology within their company. A number of my buddies who have a managed services business are having great success adding a few new clients a month using the Rainmaker Model. They can’t stop talking to me about how well this simple, process-driven sales approach is working for them.
Getting StartedFor those who are not familiar with the model, a brief overview may be helpful. A company typically employs some “junior” telesales reps at a very low base salary, plus commissions based on the number of appointments set. (This function can be outsourced to a third-party).
The reps are tasked with making a high volume of outbound dials, which produces a good number of conversations with prospects, which then leads to onsite appointments for the Rainmaker who is tasked with closing the sale (through one or a series of meetings) and ultimately securing new contracts. It’s purely a numbers game and is easy for a company to measure and continually improve its production.
Financial Drought?However, there are both advantages and disadvantages to this model...
- Can a rainmaker be everywhere, all the time?
- Will this model prevent an organization from developing a much larger, more sophisticated sales organization?
- Does it stunt internal talent development and career path?
- Does the model have a positive or negative impact on the business valuation and the appeal to a potential buyer?
- Is there a limit to growth rates and company size when the Rainmaker Model is used exclusively?
Jason Beal is Director, Services Sales, Ingram Micro North America. He plays a key role in Ingram Micro Seismic. Monthly guest blog entries such as this one are part of MSPmentor’s annual Platinum sponsorship. Read all of Jason's guest blog entries here.