This document provides information to MDU dealers on finding profitable prospects and growing their business. It discusses identifying properties with over 20 and under 20 units, focusing on metrics like build-out costs and service ratios that impact profitability. The document outlines lead sources such as prospecting, referrals, networking and databases. It provides tips on relationship building, preparing proposals, solution selling, understanding ROEs, managing timelines, and closing sales. The overall goal is for dealers to use the strategies discussed to identify quality prospects and drive new business opportunities in the MDU space.

1. FINDING THE RIGHT PROSPECTS
MDU 201

2. Welcome
» 2014 Property Launches
» BULK: 19,736 units
» DTH: 57,117 units
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» Top Performers
• BULK: Sky Satellite
» Grew bulk portfolio by 47%
• 10K total bulk units
• DTH: Broadband Holdings
» Launched 7,825 DTH units in 2014
• 220% YoY growth

3. Overview
» Why being an MDU Dealer is a great opportunity
» How to identify profitable properties
» What a dealer should focus on to drive new leads
» What a dealer needs to know when qualifying a lead
» Important facts for Right of Entry agreements
» Guidelines for all MDU Dealers to follow
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4. Opportunity
» DIRECTV technology allows MDU Dealers to be profitable
in any size property, anywhere in the United States
» 25% of U.S. households are in MDUs
» New MDU housing starts are at all time highs, at a rate of
444K in April 2015
» FCC rulings have provided key advantages for the PCO
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5. Targets
» Large MDU
• DIRECTV D2 Advantage
• Capital Intensive
• 3.2M Hi-Value Units
• Double and Triple Play
• ROE Critical
» Small MDU
• DIRECTV D2 Advantage Lite
• Limited Capital Investment
• Similar to DOB
• 9M Hi-Value Units
• Single Play (DIRECTV only)
• Simple ROE
Buildings > 20 units
Buildings < 20 units
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6. Grow Your Business
» Bulk Properties
» Direct-to-Home Properties
• Owner-Funded Models
• Dealer-Funded Models
» Double and Triple Play Options
» Footprint – Current/Expansion
» Core Strengths and Opportunities
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7. Identify Profitable Properties
» How to select quality properties
• What are the demographics onsite?
• Is it owner occupied or renter occupied?
• Can you secure marketing rights?
» Uncover potential cost uplift & profit blocks
• Is a post-wire required?
• Do they have separate home run wires for video?
• How many competitive providers are on site?
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8. Dealer Profitability
» Pre-filled with average dealer metrics
• ARPU, CSF, PPC, Net Gain, Pen, Churn, Package Mix
» Focus on metrics which have largest impact on profitability
• Build-out Costs/Charges, Service-to-Base Ratio, Revenue Share, G&A
» Service-to-Base ratio = (# of service calls/month) / (total subs)
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9. Dealer Profitability
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10. Dealer Profitability
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11. Dealer Profitability
5 Year Profitability Comparison (1k units)
Protection Plan - DTH
$6/sub $238k
No Charge $181k
Service to Base Ratio - Bulk
2% $441k
6% $214k
Penetration - DTH
25% $216k
15% $129k
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12. Lead Sources
» Prospecting
• Importance of prospecting
• When to prospect
• Guard your calendar
» Hunting and farming
• Effective prospecting
» Referrals
• Ask for more business
• They have more properties
• Who else do they know?
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13. Lead Sources
» Networking
• Tradeshows
• Association participation
• Board activities
• Networking events
» Databases
• Nielsen Mapping Tool
• Multifamily Data
» Co-branded Trade Ads
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14. Lead Sources
» National brand recognition
» Now featuring… DIRECTVformultifamily.com
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15. Keys to Relationship Building
» You’re THE problem solver offering solutions
• Remember, you’re an industry expert
• Listen, verify your understanding, identify and solve!
• Always keep in touch
» Face-to-Face
• Re-creation of the person-to-person age
• E-mail & phone calls vs. in-person encounters
• Effective sales calls, when they aren't sales calls
» Performance
• Provide quality service
• Responsiveness to resolving any issues
• Build onsite relationships with property staff and owners
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16. Prepping the Proposal
Sell a solution
Identify the problem Provide a solution that fits their needs
Manage expectations
Be a trusted advisor Set clear expectations
Educate the owner
Understand the
technology
Understand finances &
opportunity positioning
Bring deliverables
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17. Solution Selling
What
To Sell
DIRECTV
Brand
DIRECTV
MDU
Technology
MDU
Programs Benefits to
the Owner
Sell
Yourself
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18. The ROE
» Become very familiar with the ROE
• Why the term is important for you and DIRECTV
• What can be changed and what can’t
• Ability to explain terms to the client and their importance
» ROE protects your ability to gain subscribers
• Define exclusivity and marketing rights
• Can you hold events and door hang
• Think ahead!
» Be flexible
• You need ownership support

19. Keep Sales Moving
» Explain timelines
• Construction and ROE processing
• Customer requested completion times
• Be ready upon first occupancy
» Use the correct agreement
• Short Form
» No negotiation
» Simple terms
• Long Form
» Detailed rights
» Compensation provisions
• DIRECTV D2 Advantage Lite
» One page
» Month-to-month
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20. Closing The Sale
» Follow up in timely manner
• Follow up weekly with on deals on the verge of closing
» Request timeline for decision
• Place expiration dates on your bids and reference
them when closing
• Explain importance of a steady schedule
» Ask for the sale
• Don’t be afraid to ask
» Ask for more business
• When the deal is done, ask for another one
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21. The Sales Cycle
» Limit the amount of properties with 12-18 month sales cycles
» Set proper expectations with owner
» Have the right mix of properties
• HOAs
• Small properties
• REITs
• Portfolios
• Bulk
• Exclusive access
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22. Summary
» Let’s grow the MDU space
• Millions of units with no systems
• DIRECTV installs 50k residential activations monthly in MDU buildings
• More opportunities than ever
• Set goals and close sales!