For over the last 20 years in my career, I have realized one thing that agents and programs I worked with had in common. When they brought up a sale for the customer, they barely cared about the solutions but only asked one simple question, “What is the SPIFF?”

A master agent vs a master solution provider

For every business, the importance of revenue earned every month is undeniable. For those who work as agents, the chances of earning some SPIFF as a bonus from their vendors are even more desirable. That’s why agents seem to care only about how much they can earn from sale above everything else and leave aside all after-sale period, which includes discovery, project management, installation, training and support. If the end users bring up questions or have any issues after the project is completed, agents usually point them to the vendor and move on. Besides, agents don’t get paid for what they know but for who they know, so if a customer asks about a product or a service agents cannot provide, they tend to pass the customer on to somebody else. This shows that agents have no interest in maintaining long-term relationships with customers and don’t want to control what is being sold to them. I don’t say that this is a bad practice, and agents shouldn’t be blamed for what they do in their business. However, if we take everything into considerations, we will understand why these people get into a business of being agents only.

A master solution provider, on the other hand, is opposite to an agent. One key point that differentiates all master solution providers from agents is they will always ask themselves who owns the customers after sale. When the customers come to solution providers, they neither have to learn all the products in advance nor have to be worried of being passed on because solution providers measure what they know instead of who they know. They are not only knowledgeable of everything customers want from the products but also capable of handling all the needs of the customers’ project. Because of the technicalities in their job, solution providers can help their clients focus on their own business by managing the whole project from A to Z. This proves that they are not only working hard to build their customer base, but also avoiding eroding that base by not letting their clients outgrow them because they don’t have the products their clients need. In the long run, solution providers can successfully maintain long-term relationships with their customers and build long-term trust that allows them to handle all the project needs.

As we have distinguished the differences between a master agent and a master solution provider, let’s see how collaborating with a master solution provider can help a managed service company reduce the risk of losing their customers.

How a master solution provider helps IT companies reduce the risk of losing customers

MSPs might have services or products they don’t sell themselves, so they refer their customers to agents who can generate sales for them. However, as the agents only care about how much money they make and can be very indifferent to the customer experience, high chances are the end users get disappointed and decide to walk away. In another situation, the agents might have other things that they try to sell to the customers that will compete with MSPs’ services. If this is the case, the MSPs not only lose their clients but may also lose them to the agents.

By allowing partnerships with master solution provider, MSPs can avoid a lot of risks they might have when working with an agent. There are certain things you can see these solution providers do once you collaborate with them in delivering the project:

  • They are a good representative of an MSP, who are willing to support top solutions without any concern of the SPIFF.
  • They are happy to recommend the best possible product and work hand in hand with IT companies to select the right product.
  • They use elevated systems of the procedure including discovery, project management, installation, training and support.
  • Most importantly, they take control of every aspect of implementation and after-sale period. If there’s a problem arising after your network is built, give them a call and they will surely fix it for you.

It is time for MSPs to stop the practice of letting go of their existing clients because they fail to fulfill the clients’ needs. MSPs also should no longer give revenue away to a third party and avoid the risk of competitors entering your customer base. Stop saying, “They used to be one of our clients.”

LANtelligence, Inc., April 29 2019 - Joe Schiavone's idea, Uyen Vo's writing