Archive for September, 2010

Pure Play Managed Services?

September 21, 2010 by   •  Leave a comment

First and foremost.  I LOVE MANAGED SERVICES!  I”m not a hater.  I want you to have as much recurring revenue as possible.  My experience tells me a couple things by seeing SOLUTION PROVIDERS literally around the world though.  And that is that by your own admission you SUCK at selling managed services to new prospects.  You did a great job job of converting and supporting BUT you aren’t having a ton of success in creating new clients.

The bad news is you’ve been “taught” by people with a vested interest in selling you something; LICENSES.  I want you to forget that nonsense you’ve been taught about leading with a contract and firing anyone who doesn’t want to go on a contract.  You must have a diversification of your revenues.  Think about how you got your core base of managed services clients; they started out as break fix, you did some projects, you sold them some blocks of time, you established a trusting relationship and THEN you converted them.  That is perfect sales model….go do it again.  Let your experiences guide you on how to sell the managed services; replicate what’s working.

You need clients in all stages of the client lifecycle.  Why do you think Ford sells focuses when all their money is made on Excursions?  Because they know if they can get you into their entry level product, treat you well, and market to you, you’ll stick around long enough to eventually buy the Excursion and probably a few cars in between.

Pure play managed services is going to work for a few but not most.  In fact I can name a famous company that drove the pure play message and boasted about their success.  What most of us didn’t know was they were financed to the hilt by big money, they lost money every quarter and now all the onsite work that they used to sub out is being done in house.

Choose your business model wisely, stick to the basics, and be critical thinkers.