This document outlines 6 steps that MSPs should take to prepare for hiring their first sales hunter. These steps include establishing a sales cycle and process, standardizing on a CRM tool, designing quotas and a compensation plan, defining hiring criteria, and creating sales training and culture. Taking these steps will help the MSP have a dedicated person prospecting and generating leads to increase revenue without putting additional pressure on the business owners.
2. MSP Sales Strategies, Part 1
Introduction
MSP business owners face
many challenges every single
day. Between managing daily
operations, providing tech support,
and keeping their business on
track with accounting, billing and
invoicing, sales can sometimes fall
by the wayside. There just aren’t
enough hours in a day or week for
a business owner to effectively
focus on prospecting and recruiting
new clients. MSPs that are unable
to invest time into growing their
client base find it difficult to
increase their monthly recurring
revenue and profits.
However, those MSPs who
decide to move ahead and hire
a dedicated hunter, a role where
someone traditionally can prospect
and generate leads, to contribute
to sales efforts may enjoy a host
of benefits. For example, you will
have more time to focus on your
core business operations and
needs without feeling the continual
pressure to find new sources of
revenue. While your hunter focuses
on finding the “right” clients for
your company, you can focus on
ensuring your MSP business
grows and prospers.
Sales is a key component to any
business and here are the steps
to get started in hiring
your first hunter and gear
your sales department up
for success.
3. MSP Sales Strategies, Part 1
1When bringing a full-time sales person on board, it’s important to establish
a sales cycle appropriate for your business and target market(s). This
will also help with establishing a realistic quota. Monitor metrics such as
number of touch points and time between touch points to determine
your cycle. While every sales cycle is different, a common cycle might look
something like 60 to 90 days with 5 to 7 touch points.
CLOSE
NEGOTIATE
PROPOSAL
ANALYZE
QUALIFY
PROSPECT
Establish a sales process
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4. MSP Sales Strategies, Part 1
2Implementing a Customer Relationship Management (CRM) tool is
crucial to keeping your sales process running smoothly. CRM tools such as
HubSpot, Capsule, or even ConnectWise make it easy to manage all aspects
of your prospects and gain insight into your sales cycle. With a CRM tool,
you can keep track of all contact details for a prospect, monitor the number
of touches for a prospect, and keep track of average sales size and dollar
amounts. CRM tools are also great for managing your pipeline so that you
can accurately forecast your future sales.
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Standardize on a CRM tool
5. MSP Sales Strategies, Part 1
3Quotas are the primary measure of sales success. Without carefully
thought-out quotas, your sales team could easily lose sight of their personal
incentives and the overall goals of your company. When designing your
sales team’s quota, consider realistic expectations and the metrics of
your sales cycle. What is your average sales dollar amount and how many
average sales a month do you close? It’s also important to consider what you
would like “more” of. Is it more profits? More signed agreements? Is your
MSP capable of taking on more business? Design your quota metrics around
your near and long-term goals.
Design a quota
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6. MSP Sales Strategies, Part 1
4Whichever metric you choose to base your quota on is the one you
should design your compensation plan around, since that information
can be used to create a realistic and motivating commission plan. Most
MSP sales teams are compensated with a base salary plus commission, but
you could also consider a 100% commission-only plan. Consider a ramp-up
period with the plan for new hires as it will take several months for
a sales professional to build up their pipeline to their full potential.
Create a compensation plan
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7. MSP Sales Strategies, Part 1
5Before hiring a salesperson for your team, identify the specific criteria
that you should be searching for and create a job description that fits
the needs of your ideal candidate. Some questions to ask yourself should
include: Does this candidate have sales experience? Do they come from
a technology background? If so, what kind of background – were they
involved in hardware sales or cloud services? Are they familiar with the
monthly recurring revenue business model? Can they network effectively?
Will they be a good fit for your company culture? Ensuring all salespeople
fit the mold of what you are looking for will help make your sales program
successful from the get-go.
Hiring criteria
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8. MSP Sales Strategies, Part 1
6It is a best practice to thoroughly document internal processes and
procedures to ensure a salesperson can fit into your company and be
productive right away. Do you have an internal training program to bring all
employees up to speed on your services? Will your new hire have a ramp-
up program when they first start? Is there training available for learning how
to use the systems and software you use internally, such as your PSA tool
or CRM system? These are all important considerations you need to think
about and take action on prior to making your first hire.
Create a sales culture
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