When Do YOU Want to Make Money?

Every self-appointed expert sings the praises of Monthly Recurring Revenue (MRR). There’s no doubt it’s great to sell once and get paid every month for years. But what IT channel partner doesn’t want revenue right away, too?  Here’s how to craft your next project proposal to include revenue before the cloud, during the migration, and after that project is complete.


When do YOU want to make money?  Now, or later? Those who emphatically answered “BOTH” please read on.  The rest of you, please change your answer and read on!

By now we’ve all seen the traditional hockey stick graph illustrating how monthly recurring revenue builds on itself.  Each contract you sell pays commissions monthly.  When you sell more contracts, that’s more commissions.  More sales, more commissions.  Over time, you reach a point where the total of all your monthly contracts exceeds your quota.  What happens then?  Your quota gets raised.

Beyond this growing book of business, a portfolio of existing monthly recurring revenue contracts is one of the few things that can readily be valued about a business.  If you’re an owner, this becomes extremely useful when you’re ready to execute your exit strategy!


Making Money in the Meantime

So, what about the now?

To generate more revenue through cloud subscription sales, wrap your own services around each contract.  You don’t have your own services?  Partner aggressively to obtain them.  Here’s how it works.

When a customer buys a cloud services subscription like Office 365, several things need to happen. Somebody must plan out the deployment of the mailboxes and provision services for the users.  Usually, customers buy a bundle of cloud services from you.  Somebody has to plan how they will all work together.  What are the security provisions?  The users need to be trained.  The data must be migrated.  Long term, the services will need to be managed and users supported.  Somebody has to do all that – and it should be you!


Your Wrap-Around Services Checklist

If your company doesn’t provide many of these services, think “partnering.”  Just because you don’t deliver them yourself doesn’t mean you can’t sell them profitably to your customers.  Many Microsoft Partners will gladly partner with you and pay you a commission to sell their services to your customer, and the quality providers will gladly sign any agreement you need them to sign to protect your customer base.

The following is one comprehensive checklist of services that should be included with every cloud subscription sale.  There are sure to be services that we’ve missed, but this is a good starting point.  Let us know what you’d add to this list!

  • Initial Consulting
  • Application Inventory and Evaluation
  • Solution Architecture/Cloud Service Selection
  • Information Architecture/Capacity Planning
  • Security Planning w/Cloud Integration Design
  • Application Transition Planning
  • Environment Transition Planning
  • User Transition Training
  • Cloud Service Provisioning
  • Email System Migration
  • Email Archiving
  • Data Migration
  • User Deployment & Rollout
  • Day Zero Transition Support
  • User Support Program
  • Network & Cloud Service QoS Monitoring & Management Program
  • Capacity Management

Think these can add some significant, immediate revenue and profitability to your cloud sales?  Talk to your partners at BitTitan about MigrationWiz and other tools we provide that position you to be the Migration Wizard who makes money now and later.


About the author

Howard M. Cohen

Howard M. Cohen is a Senior Resultant and Contributor to the Bits & Bytes Blog. He is a 30+ year executive veteran of the Information Technology industry, an authorized CompTIA instructor, and a regular contributor to IT industry publications.

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