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Drive Managed IT Services Sales with the Right Incentives

19 Nov, 2014 By: Michael Amiri, Continuum

Office equipment dealers continue with the challenges of delicately balancing traditional copy and print sales that are at the core of their business today with new managed IT services that are the future of sustaining their business over the long term. Sales representatives are making money today with traditional copy and print sales, which accounts for about 90-95 percent of most OE dealerships, but the transition to managed IT services must take place for long-term stability and growth. How do you incentivize sales reps to start selling managed IT services now while maintaining current revenues with copy and print sales? Through their compensation package, of course.

A typical sales compensation plan in managed IT services looks like this. A commission check for a 1-3 year managed IT services deal equates to the first month’s payment on every annualized year. For example, in November, a sales rep signs a 3 year deal for $1,500/month. The rep gets a check for $1,500 this month when the contract starts, then another $1,500 in November 2015 when the contract renews and every year after for each renewal, incentivizing the rep with an annuity payment that keeps your best people around for the long-term.

In addition to monetary compensation, having managed IT services sales tied directly to President’s Club can be most effective. The sales rep who has his/her eye on earning this all-important, prestigious award will take notice that selling managed IT services now needs to happen for success. And, in the example above, the “Board Value” for this deal equates to 6-12 months of board credit, which can accelerate a rep’s opportunity to make Club. The important message to your sales team is that both copy and print as well as managed IT sales needs to be booked. Copy and print sales alone won’t cut it any longer…for the dealership or the rep.

Buy-in for this approach must come directly from ownership, management and everyone at the top so that sales understands the importance of this balancing act. And, they must be ready to be met with some resistance. Typically, sales reps live for the sale and payout today, and they have been successful in selling boxes, but management must understand where future sales are coming from, and  managed IT services is critical to that future. Sales reps worth their weight will understand this approach. Alternatively, sales reps who meet this new compensation plan with negative feedback and resistance might not fit into your sales department of the future. 

Clearly, managed IT services must now be a healthy portion of your sales compensation and incentive plan, delivering the message that selling both copy and print services today and transitioning to managed IT services for a lucrative future is critical to the dealership. Ownership and management must be “all-in” to this approach going forward. Without the “all-in” buy-in, success is not possible. Set up a sales compensation and incentive plan that accounts for both copy and print sales as well as new IT services in order to maintain the delicate revenue balance for both short and long term success.

For more information on accelerating your success in managed IT services, visit: http://www.continuum.net/OE.

Michael Amiri and his dealer support team can be reached at OE@continuum.net.

About the Author: Michael Amiri

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