Growing an MSP Business Through P2P: The Low-Risk Approach To Delivering Superior Business Value
MSP’s are naturals at P2P (Partner-to-Partner) sales.
Many providers are used to teaming up with the sales teams from the vendors that they normally work with to win new opportunities and grow their customer base.
It’s in the DNA of channel organizations.
But true P2P is not that. A more intentional P2P motion is when different partner organizations team up to win opportunities that one or the other, or both, might not be able to work on without the other partner organization.
P2P is really an alliance between two partner companies with the goal of bringing new revenue to each participant, and a great solution to customers.
There’s Gold in Them (P2P) Hills!
Obviously both organizations want new revenue. The beauty of P2P is that each company brings their skills and assets to the table and achieve customer outcomes that neither would easily be able to produce on their own.
Examples of P2P abound. Here are a couple:
- An MSP and a volume-oriented VAR go to market together. The MSP’s customers benefit from more favorable pricing on products, while the VAR’s customers can benefit from the MSP’s stronger services bench.
- An MSP and an ISV (Independent Software Vendor) bring the ISV’s solution to the MSP’s customers. The MSP gets a new revenue stream on a solution that they would not have been able to sell themselves, while the ISV gets access to new customers.
There are lots of permutations of this model, but these two are very common.
No Risks Please, We’re MSP’s!
Another great feature of P2P is that risk management and resource allocation are optimized.
It would be too much risk for an MSP to stand up a new solution capability without a lengthy preparation period and the assembly of the sales and technical resources to work it. The other way would be to acquire an existing organization and fold their capabilities into the acquiring organization. There is a certain amount of risk associated here as well.
P2P gives both parties the confidence to work the opportunities while lowering the risk.
Lowered Cost of Sales
100% of zero dollars is not a great deal. Yet that is the margin that a lot of MSP’s are making on projects that are going on in their customer base right now.
Partnering with an ISV like Azamba changes that math.
Full Microsoft Biz Apps licensing revenue? Check.
Ongoing services revenue for the life of the customer relationship? Check.
Providing a differentiated point solution that customers genuinely want and need? Check.
Achieving all of this without tying up the sales and technical teams and distracting them from their core priorities? Check, check, and check again!
We are in a booming market for our solutions. Let’s combine forces and create new revenue streams, without risk or expensive new outlays.
Patrick Nantel
Patrick Nantel is Director of Partner Sales at Azamba, helping partners quickly capitalize on the opportunities in front of them.
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