“We can’t afford you” this is the most common objection we hear from computer business owners about spending money on an it call center. As we have discussed before, many decide telemarketing is not an option for them or try a lower priced or cheaper solution. Many times they get what they pay for, which is no results at all. Some times a few come back to us; but most end in the telemarketing graveyard.
We believe that many computer consultants are looking at IT Lead Generation cost upside down!
The first thing we want to point out in regards to an computer consultant judging their IT marketing services budget is not to be short sighted. The reality is that most of our clients and probably the entire industry will retain most of their msp clients for a long time. One client told us that they had a 99% retention of their msp clients they got from our telemarketing efforts.
With this in mind it was MSPU that first turned us on to looking at sales from an annual basis instead of just a monthly basis. It’s much easier to look at spending money on computer business marketing if you look at the sales profits over a longer period of time. In fact we believe an MSP can actually look at sales revenue over a 5 year period instead of just an annual time frame.
Now what do we mean when we say that msp are looking ‘upside down’ at their cost vs. benefit regarding telemarketing? Well let’s say we are talking about a 4k to 5k starting cost with a good telemarketing firm like msp telemarketing and you’re factoring in getting only a $1500.00 a month reoccurring sale from that marketing effort.
The way many msp look at this is by putting the 4k on top of the $1500 and say this would put them upside down on their marketing cost. If you a computer consultant evaluating the cost of this it services marketing plan, then you might have come to the same conclusion. However, lets think about that $1500 on not just an annual basis but over a 5 year period like we discussed above.
First, that $1500 monthly revenue comes to $18000.00 over the first year and adds up to $90,000.00 over the five year period that we discussed. Now keep in mind that this doesn’t include any project work you might get from them over that 5 year period nor the referrals you would get from giving out this reference or getting a referral directly from this customer
The It sales leads referrals are not just something we are throwing in to add up the value like an infomercial where the extra stuff is worthless when you get it. We have one client that got 5 closed sales by using one sale experience to establish an vertical market and it made their entire ROI for the year. That was just from tiny a $1000.00 a month sale.
So let’s look at this equation from the right side up and say if you’re spending 4k and get a $1500.00 a month sale from that effort. Now we put the $90,000.00 projected revenue over a 5 year period on top and the 4k expense on the bottom. Now getting technology sales leads this way looks a lot better by looking at the benefits the right side up.