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When Worlds Collide: Telco Agents Selling Managed Services

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Telco agents and MSPs seem, on the surface, to operate in completely separate worlds. They have different financial models, sales compensation strategies and client conversations, not to mention different approaches to IT. 

But many agents are looking toward managed services to up their recurring revenue and create ongoing stickiness with their customers. This pivot sounds great in theory, but in practice, it can be almost impossible to figure out on your own. Fear not, it can be done.

TPx's Jared Martin

TPx’s Jared Martin

At the upcoming Channel Partners Conference & Expo in Las Vegas, agents who have “been there, done that,” will explain how. Jared Martin, vice president, MSx managed services at TPx Communications, will lead these experts in a discussion entitled “Agents Can Sell Managed Services. Here’s How,,” March 10, part of the sales and marketing track sponsored by Nextiva,  to lay out how to integrate managed services into your existing agent business model.

Channel Partners spoke to two of the three panelists: Matt Kanaskie, vice president of sales operations at Marco Technologies, and Nancy Ridge, founder and president of Ridge Innovative, as well as moderator Jared Martin to get the scoop. 

Join Martin, Kanaskie, Ridge and 100+ industry-leading speakers, more than 6,400 partners and 300+ key vendors, distributors and master agents at the Channel Partners Conference & Expo, March 9-12. Register now!

We have edited the answers for length and clarity.

Channel Partners: What are the two or three biggest takeaways you’d like to be conveyed in this discussion? 

Jared Martin: Agents not selling managed services are leaving money on the table. Managed services is where it’s at – for instance, the majority of TPx revenue now is from it, even though traditionally we were telecom only. The second part is that real growth begins at the end of your comfort zone. Managed services offer higher margins, thus higher revenue. And third, It is critical you choose the right partner.

Marco Technologies' Matt Kanaskie

Marco Technologies’ Matt Kanaskie

Matt Kanaskie: It will be important to convey the different methodologies of offering managed IT services, the definition of managed services in general, and the value of consuming managed IT services to customers.

Nancy Ridge: Regardless of what our particular circumstances are, or where we are in our digital transformation journey, the key is developing a growth mindset. With that, any hurdle can be overcome.

CP: Can you elaborate a bit on the differences between telco agents and MSPs, and how agents are looking toward managed services to up their recurring revenue and create ongoing stickiness with their customers?

JM: Customers nowadays want a one-stop shop, so agents are forced to get outside their comfort zones and add managed services to their portfolio. It is also a fast-growing field with good margins, so it is a no-brainer for agents to start offering it. The best agents know to sell the benefits – not the technology – to go to their existing customers first, and not be afraid to ask questions.

MK: Telco agents traditionally have focused on and sold products adjacent to telecom and ISP services. MSPs traditionally have focused on and sold products adjacent to IT infrastructure and hardware/software. 

As for agents looking toward managed services, there are a few key reasons: guiding client wallet share and mindshare of addressable IT budget; increased MRR capture rate per transaction, higher ARPU (average rate per unit); defensible strategy for long-term client retention; future lead source for enhancements and technology road map; and to gain insight, analysis and data to drive better solution outcomes correlated to their sales efforts.

NR: Telecom partners are comfortable with using technical resources from service providers to sell and support services to their customers. MSPs are much more independent and are comfortable when …

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