COLOTRAQ, a global sourcing advisory firm for data center services, announced it has launched a full-service master agency for colocation, managed hosting and cloud computing services.
Previously, the company offered its services through other master agencies and directly under a referral model. The company has 40 referral agents signed since it launched the program in April 2007.
Under the new master agency program, agents can engage with COLOTRAQ in one of three ways, which they may choose on a deal-by-deal basis. They can work under the existing referral program where the agent hands off the client to COLOTRAQ. Or they can choose to be a traditional agent and manage the sale end to end. There is also an “assisted sales" option for large complex projects and multisite deals where COLOTRAQ’s expert sourcing consultants provide technical consultation, sales cycle management and even conduct tours of facilities.
Referral agents are paid 50 percent of the commissions COLOTRAQ receives for two years. Agency commissions are 70 percent of revenues received and assisted sales deals pay 50 percent of revenues received. Contracts for the agency and assisted sales options include evergreen clauses, paying commissions for the life of the client’s relationship with the vendor.
To support direct subagents, COLOTRAQ has added features to its web portal, such as online deal registration and tracking, and the dynamic search tool that reports on our vendors by location, and agent training materials.
It also has added staff dedicated to managing agent relationships. A dedicated Commissions Management Group conducts regular audits and reconciliations to ensure partners receive the compensation they are due. A revenue-retention group reminds agents when a customer is coming up for renewal and assists in the renewal process, if asked.
COLOTRAQ, a division of Interaqt Corp., formed in 2002 as an offshoot of its parent company’s data center design and build business. It started as a marketplace and developed into a full service sourcing advisory firm, said CFO Jack Rabinowitz.
Today COLOTRAQ can instantly match customer requirements from a single rack to thousands of square feet of data center space and related bandwidth, dark fiber and managed hosting through relationships with more than 400 service providers, which maintain more than 3,000 colocation facilities in 1,200 markets across 160 countries.
COLOTRAQ relies on the indirect sales model. “Some of our business comes to us directly from our website, but we currently have no outbound sales staff soliciting business," Rabinowitz said. COLOTRAQ’s sourcing consultants qualify leads, suggest alternate solutions for the clients’ needs and put the projects out to bid to appropriate vendors. They remain active in the procurement process until the deal closes.
“We’re not looking to compete with other masters for their traditional telecom business," Rabinowitz added. “Something to keep in mind is that we are truly global and have experience with projects in virtually every part of the world where you can find a data center."