Recurring Revenue Is King. Transactional Hourly Lifestyle Consulting Decaying.

According to a CRN Channel Chief Roundtable one thing  differentiating  winning , profitable resellers from  losers –  recurring revenue.  The article implies that it can be the different between a valuation of 8 to 10 times earnings and a valuation that provides a reseller with a marginally higher paying job for a few years.

Continue reading “Recurring Revenue Is King. Transactional Hourly Lifestyle Consulting Decaying.”

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

Tire Kicker Management 101

Do you have prospective customers who find you on the Internet and call asking  all sorts of free “quick questions”?  These are often people who’ve dropped maintenance, dropped their consultant and are moving to another solution  – but have one quick question.

Do they want the bottom of the barrel service level with no pre-planning yet they keep sending questions outside of the scope of what they’ve requested.

I found a 100% foolproof method to get around this. I call this the Schulz Qualifying System (SQS) for short.

Send them a proposal with an invoice. You’ll never hear from them again. Works every time for me.

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

VAR 2013

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With respect to the installed base orphan market I think we will see partners stop one-off consulting and quotes unless the orphan is on a support plan with the partner and has gone through a pre-paid review process.

There are far too many orphans who are marginal/poor quality and it is not profitable to chase them for one-off work that requires 4-6 hours to quote, 4-6 hours to project manage and then 25% (or worse) chances of “winning” the work.

Increasingly the orphans that I’ve seen are on outdated (unsupported) versions of ERP software, have no real idea what they’re running and often have one more quotes that they ask you to bid against. In some cases the orphans have even provided the competing quote detailed work plan.

There are always going to be sole proprietor consultants working from home who offer one-off consulting at hourly rates that are no higher than what they charged in 1986. Don’t base your business on the poor practices of other consultants unless you want to wind up like them.

Orphans on versions outside of the Sage support window should also be subject to a higher fee schedule.

Never be lulled into thinking that an orphaned user who “found you in Google” is going to become a loyal paying customer for years to come. Most pure “Google Search” inquiries are from users opposed to paying for support, maintenance, consulting or quotes. Ask yourself – what opportunity do these types of inquiries offer? Answer: Generally none.

There needs to be a greater willingness on the part of all VARS to walk away from low quality prospects. There’s always going to be a VAR in this market who will think these types of rules don’t apply to them — I say enjoy making $40/net an hour pursuing low quality and extremely  non-loyal orphan work.

 

TL;DR: If an existing user of Sage (or any) software won’t pay to go on a recurring annual support plan with your company – walk away.

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

Would You Like To Buy Lists of Software Users? Spam Invades My LinkedIn Mail

linkedin spammers

Buying leads of software users from anonymous online distributors is generally not advisable. More than a few people have reported that they pay money for either a fairly low quality list or there in some instances may be outright fraud involved. Continue reading “Would You Like To Buy Lists of Software Users? Spam Invades My LinkedIn Mail”

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.

Your Google Places Listing Is Not Compliant (Telemarketing Spam)

google places listing

 

If you receive a recorded message indicating that your Google Places Listing is not compliant – and you can “press one” to be connected to a representative – ignore.

One of the most prolific telemarketing schemes since the days of copier toner sales has been targeting companies across the country with automated calls masked to sound as if Google is contacting you about your online listing.

This is not Google calling.

There is no charge for Google Place listings (link).

 

Google Places

Wayne Schulz is a consultant who writes about the ERP industry and technology related news.