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Best Practices in Reselling CloudServicesFeaturingCraig Rosenberg, TOPOJustin Gray, LeadMD
BiosJustin GrayCEO, LeadMD (www.leadmd.com)@jgraymatterCraig RosenbergCo-founder, TOPO (www.topohq.com)@funnelholic
Agenda• The Cloud Opportunity• Cloud versus Traditional Reselling• Best Practices in Re-selling Cloud Services• The “Gotch...
The Cloud Computing Market is inHyper-Growth Mode• Seventy-seven percent ofrespondents expect toincrease spending on SaaS(...
The Growth in SaaS Revenue2011-2016
Cloud versus TraditionalReselling Models• Recurring Revenueversus the big, upfrontpayday• Open, standardized API’s• The tr...
The Recurring Revenue Model versusthe Big, Upfront PayoutTraditionalResellingCloud ServicesInitial DealSizeHigh LowerRecur...
Renewal Acquisition Costs areExtremely Compelling• Every dollar of grossmargin a sellerreceives from a newcustomer costs $...
Open, Standardized API’s = MultipleOpportunities
The transition to cloud is justbeginning and the opportunity is hugeCloud computing will increase from $23.8B to $39.4B(66...
Twelve Best Practices forReselling Cloud Services1. Understand your target buyer persona2. Become a trusted advisor3. Focu...
Understand the Target Buyer PersonaA buyer persona is a description of a specific person for whom yourproducts and service...
10 Buyer Persona Questions1 What do they do in their job every day? (responsibilities and activities)2 What keeps them awa...
Become a Trusted Advisor to yourTarget Market
Pay Attention to your Customers“In our time you need to know that if you sold it, you own it. You’regoing to help that cus...
Target Customers who are growing“One of the benefits ofselling cloud solutions isthat a growing, happycustomer meansincrem...
Work within buyer constraints“Smart resellers wont force their prospects torip everything out. Instead they understandwher...
Land and ExpandStart with smaller, sensibledeals to get in the door
Sell to Business Units before ITCDW State of the Cloud Report 2013
Mobilize for more deals atlower deal sizesPotential Sales Models1. Direct Reps2. Combination of Direct andInside3. Inside ...
The Case for Inside Sales• 75% of customer would prefer not to spend time meeting face to face insales situations.• 150% m...
Offer Best of Breed or Best of FeatureLast twenty years“Cloud computing provides the opportunity to leverage best-of-breed...
Use free, relevant offers to start theconversationExamples of free offers:• Audits• Technology Assessments• Data/Research ...
Lead with a solution that gets yourfoot in the door“Prospects receivesomething of valueand sellers get theopportunity to b...
Develop a specialty that makes youindispensable to your partners“Once we became Google’s Lotus Notes conversion go-to part...
Three “Gotchas” to Watch out For1. Trying to take toomuch money upfrontand scaring thecustomers away2. Offering too manyse...
Eight Steps for Getting Started1. Reach out to your existingcustomer base2. Develop your cloud strategy3. Partner with ven...
Question and AnswerQuestions?Follow Justin Gray - @jgraymatterFollow Craig Rosenberg - @funnelholicFollow AppNeta - @appneta
Thank you!Follow Justin Gray - @jgraymatterFollow Craig Rosenberg - @funnelholicFollow AppNeta - @appneta
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Best Practices in Reselling Cloud Services

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Webinar with Justin Gray on reselling cloud services

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Best Practices in Reselling Cloud Services

  1. 1. Best Practices in Reselling CloudServicesFeaturingCraig Rosenberg, TOPOJustin Gray, LeadMD
  2. 2. BiosJustin GrayCEO, LeadMD (www.leadmd.com)@jgraymatterCraig RosenbergCo-founder, TOPO (www.topohq.com)@funnelholic
  3. 3. Agenda• The Cloud Opportunity• Cloud versus Traditional Reselling• Best Practices in Re-selling Cloud Services• The “Gotchas” - What to watch out for• Eight Steps for Getting Started
  4. 4. The Cloud Computing Market is inHyper-Growth Mode• Seventy-seven percent ofrespondents expect toincrease spending on SaaS(Gartner 2012 SaaS survey)• Seventy-four percent oforganizations wereprojected to increase cloudcomputing services in 2012(ESG)• Over the next four years theCloud Computing market isgoing to double. In fact,according to IDC, the cloudcomputing market is goingto move from $28.4B to$67.3B.
  5. 5. The Growth in SaaS Revenue2011-2016
  6. 6. Cloud versus TraditionalReselling Models• Recurring Revenueversus the big, upfrontpayday• Open, standardized API’s• The transition to cloud isjust beginning and theopportunity is huge
  7. 7. The Recurring Revenue Model versusthe Big, Upfront PayoutTraditionalResellingCloud ServicesInitial DealSizeHigh LowerRecurringRevenueNone On-goingPredictableRevenueModelNo Yes
  8. 8. Renewal Acquisition Costs areExtremely Compelling• Every dollar of grossmargin a sellerreceives from a newcustomer costs $1 toacquire, while renewalrevenue only costs12.5 cents to acquire.(Scout Analytics)
  9. 9. Open, Standardized API’s = MultipleOpportunities
  10. 10. The transition to cloud is justbeginning and the opportunity is hugeCloud computing will increase from $23.8B to $39.4B(66%) world-wide between 2013 and 2015 (Gartner)• Infrastructure-as-a-service (IaaS) will grow from$8.1B to $15.5B (91%)• Platform-as-a-service (PaaS) will grow from $1.2B to$1.8B (50%)• Software-as-a-service (SaaS) will grow from $14.5Bto $22.1B (52%).
  11. 11. Twelve Best Practices forReselling Cloud Services1. Understand your target buyer persona2. Become a trusted advisor3. Focus heavily on customer satisfaction and post-sale relationship building4. Target prospects who are growing5. Work within you buyers’ constraints6. Land and expand7. Avoid corporate IT and sell to business units or divisions8. Mobilize for more deals at lower deal sizes9. Sell “best of breed” or “best of feature”10. Use a free, relevant offer to get in the door11. Lead with a wide-solution to quickly build your customer base12. Develop a specialty to build deeper relationships with the vendor partners
  12. 12. Understand the Target Buyer PersonaA buyer persona is a description of a specific person for whom yourproducts and services are intended. It goes beyond statistics anddemographics, and defines behaviors, motivations, likes/dislikes, traits, etc.Its intent is to help you reach your customers on a human level. (JeremyVictor)“(A buyer persona is) a short biography of thetypical customer, not just a job description buta person description. The buyer personaprofile gives you a chance to truly empathizewith target buyers, to step out of your role assomeone who wants to promote a product andsee, through your buyers eyes, thecircumstances that drive their decisionprocess.“ (Adelle Revella)
  13. 13. 10 Buyer Persona Questions1 What do they do in their job every day? (responsibilities and activities)2 What keeps them awake at night? (list 3-6)3 What are their organizations biggest challenges?4 How are they measured?5 What do their buying processes typically look like?6 Who else is on the buying committee?7 Why would this persona buy your solution?8 Why haven’t they bought your solution?9 Where do they educate themselves?(online/offline)10 How do they prefer to educate themselves? (eg. Webinars)
  14. 14. Become a Trusted Advisor to yourTarget Market
  15. 15. Pay Attention to your Customers“In our time you need to know that if you sold it, you own it. You’regoing to help that customer get that outcome. If you disappear,then your relationship disappears with you.”Anthony Iannarino
  16. 16. Target Customers who are growing“One of the benefits ofselling cloud solutions isthat a growing, happycustomer meansincremental revenue tothe reseller”
  17. 17. Work within buyer constraints“Smart resellers wont force their prospects torip everything out. Instead they understandwhere the customer is in their cloud evolutionand work within their current technologyconstraints. “
  18. 18. Land and ExpandStart with smaller, sensibledeals to get in the door
  19. 19. Sell to Business Units before ITCDW State of the Cloud Report 2013
  20. 20. Mobilize for more deals atlower deal sizesPotential Sales Models1. Direct Reps2. Combination of Direct andInside3. Inside Sales Only4. Hybrid (75-80% inside, 20-25% face-to-face)
  21. 21. The Case for Inside Sales• 75% of customer would prefer not to spend time meeting face to face insales situations.• 150% more efficiency in your sales force by eliminating travel time.• Re-align your team by vertical, by tier, or by type of product sold becauseyou are not geographically constrained.• Drive Customer Acquisition Cost (CAC) out of your business model• Increase profitability• Average Sales Price (ASP) so you can gain entry into the marketplace• Engage inbound leads instantly.• The data shows that if you do not contact an inbound lead before it is 30minutes old, the likelihood of converting it to a Sales Qualified Lead (SQL)plunges to near zero. Reaching out to leads at the end of the day does notwork.http://www.salesbenchmarkindex.com/bid/88402/Your-Customers-Are-Telling-You-to-Reconsider-Inside-Sales
  22. 22. Offer Best of Breed or Best of FeatureLast twenty years“Cloud computing provides the opportunity to leverage best-of-breed application offerings…Youcan pick the world’s best application for every need, every user, and every business case. You candeploy exactly the number of seats you need, where and when you need them.”Bessemer Venture Partner’s Top 10 Laws of Cloud ComputingSuitesNow
  23. 23. Use free, relevant offers to start theconversationExamples of free offers:• Audits• Technology Assessments• Data/Research Presentations• Vulnerability Tests
  24. 24. Lead with a solution that gets yourfoot in the door“Prospects receivesomething of valueand sellers get theopportunity to buildtrust andunderstand theprospect’stechnologyenvironment.”
  25. 25. Develop a specialty that makes youindispensable to your partners“Once we became Google’s Lotus Notes conversion go-to partner, their salesreps were calling us into deals” – David Politis
  26. 26. Three “Gotchas” to Watch out For1. Trying to take toomuch money upfrontand scaring thecustomers away2. Offering too manyservices and solutions3. Choosing the wrongvendors and serviceproviders to partnerwith
  27. 27. Eight Steps for Getting Started1. Reach out to your existingcustomer base2. Develop your cloud strategy3. Partner with vendors4. Start selling to the companiesthat are looking into moving tothe cloud5. Build case studies andreferences6. Build your content7. Market to your database ofleads8. Sell and market wide
  28. 28. Question and AnswerQuestions?Follow Justin Gray - @jgraymatterFollow Craig Rosenberg - @funnelholicFollow AppNeta - @appneta
  29. 29. Thank you!Follow Justin Gray - @jgraymatterFollow Craig Rosenberg - @funnelholicFollow AppNeta - @appneta

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