Isn't it a bit perplexing that doctors and lawyers can ask for $400 per hour for any and every consultation, but IT service providers are too shy to ask for $200 for their expert advice and often just give it for free? Why is the highest possible value MSPs give to the clients so devalued? Let's investigate this discrepancy and check out a couple quick tips for a solution. We are going to take a cue from Dentists.
Denes Purnhauser
Recent posts by Denes Purnhauser
4 min read
Why do most professionals charge for advice while we MSPs do not?
By Denes Purnhauser on May 25, 2015
Topics: vCIO IT Sales Person Virtual Chief Information Officer IT Sales MSP
3 min read
Convert a business problem to an IT problem with ease
By Denes Purnhauser on May 19, 2015
A basic truth of sales is that you need to associate your services and products with the pain-points of your customers, so that what you offer is thought of when those problems arise. IT managed services providers are selling high-level concepts when the client has manifesting pain-points: slow server, slow internet, outages, severe duty service, etc. But what can an MSP do for a client who doesn’t recognize the snags and hurdles they have? Let’s take a look at an easy 5 minute solution to this problem.
Topics: IT Sales Person Managed Services Providers IT Sales MSP Marketing for IT Companies IT Consultative Sales
4 min read
Proactive Customer Development: Leverage your QBRs
By Denes Purnhauser on May 5, 2015
Most IT managed services providers are quite proud of how proactive they are, especially in terms of technical services like maintenance, antivirus, warranty, etc. However, if we look at their client's IT savvy, operational maturity, and IT enablement, this is less true. Here are four easy tips to leverage Quarterly Business Reviews and implement the proactive mindset on a higher level.
Topics: vCIO IT Sales Person Virtual Chief Information Officer IT Sales MSP Virtual CIO CIO QBR Quarterly Business Review
6 min read
The 6 Reasons MSPs Tend to Over-Deliver
By Denes Purnhauser on Apr 22, 2015
One of the most common laments we hear from IT managed services providers is over-delivery of too many different services. They feel they serve their clients more than needed and the services go unused by the clients. Account managers end up doing more IT consulting than they should, demands for IT consultation are unlimited, and the IT company invests time on IT projects that never start. Here we delve into the root of the problems and learn what to do about them!
Clients will start with questions like “What is the best application for this problem? Why are people not productive? How do we manage various IT related vendors?”, etc. However most IT companies do not have the right model for IT consultancy, and try to address those needs without a viable revenue model.
The result of over-delivery is diminished return on service investment. Not only do we do too much but at the same time we set unreasonable expectations with the client. We teach them that we do it for free, or that any request is covered already, and that blocks our ability to implement a profit model, if we even have one.
Let's quickly see the six causes of over-delivery and review a solution.
Topics: vCIO IT Sales Person Virtual Chief Information Officer IT Sales MSP Virtual CIO CIO IT Consultative Sales
7 min read
4+1 Website Sins Preventing MSPs from getting more leads
By Denes Purnhauser on Apr 16, 2015
After talking with dozens of IT managed services providers and analyzing more than 500 MSP websites, we have a pretty clear understanding why the online marketing of MSPs has been broken. If you are reliably and predictably generating the right leads then you can skip this - just check the short MSP website grader at the bottom. Otherwise stay tuned and read this short article.
Before we start, we need to establish one thing: "Clients we desire do not have IT problems anymore."
If they have visible IT problems, they are not good for us. Why? Well, if in 2015 a potential client has not been able to find someone who can take care of their basic IT needs we have to watch out. They either have not been able to or have not wanted to spend on IT.
Our best customers are the ones who understand IT and want more services because they think technology can deliver value to them.
The only way we’ll see qualifying prospects with visible IT problems in a given department is when the IT provider has been dropping the ball continually, and we all know this is happening less and less frequently.
Most potential clients have solved the MSP 1.0 problems: infrastructure, networks, devices, virtualization, and some cloud. We need those people because they want to move forward. These are our "best potential clients." Unfortunately, they have solved the traditional problems with someone else, but that does not dictate that they have to continue to solve their next challenges without us.
If we agree on this, we can now start analyzing why our current websites are not working.
Topics: Managed Services Providers MSP Demand Generation for IT Companies Marketing for IT Companies
6 min read
The 5 Levels of vCIO Operational Maturity
By Denes Purnhauser on Jan 30, 2015
The Operational Maturity segmentation makes a lot of sense when trying to understand where to go with vCIO services and which next possible steps to take.
It demonstrates the current maturity of services in a descriptive way, explains the differences, and provides hints and tips toward the next step.This article demonstrates how to proceed as a virtual CIO with respect to levels of operational maturity.
Topics: vCIO Managed Services Providers Virtual Chief Information Officer Business Building for IT Companies MSP Virtual CIO CIO
2 min read
What is the one business skill MSP leaders can teach their clients?
By Denes Purnhauser on Dec 23, 2014
Topics: vCIO IT Sales Person Virtual Chief Information Officer IT Sales MSP Virtual CIO CIO IT Consultative Sales
2 min read
What makes a good vCIO?
By Denes Purnhauser on Dec 3, 2014
Typically there is a certain type of personality that is best suited to the vCIO role.
- They have some consultative background.
- Their “down to earth” mentality suits working with small to medium business.
- They tend to be systematic, process-oriented thinkers.
- They understand how to put technology solutions into a business solutions context.
Chances are you possess many if not all of these traits. But who else on your team also fits the role? The idea here we’re looking at here is nurturing and developing ideal vCIO candidates to build a hyper-successful MSP in the modern marketplace - something one can't do alone. Let’s take a look at what that will require.
Topics: vCIO Managed Services Providers Virtual Chief Information Officer MSP Virtual CIO CIO Implement New IT Services
5 min read
Trusted Advisor or Technician, Which Pays More?
By Denes Purnhauser on Nov 28, 2014
Most IT managed services providers we work with suffer a fundamental problem: the definition of who they are. The lack of a clearly defined definition of the business can be the biggest obstacle they face to success in the MSP 2.0 environment. The statement "I am a tech" needs to change to "I am a IT consultant." Unfortunately people often underrate themselves because they lack an MBA or they’re uncomfortable with so called “sales.” This limits them and their teams in engaging with more clients and prospects in a meaningful business way.
However, being a business consultant is just a role, a mode of operation, a mindset and the subject can be anything technical. Consulting is a behavior, a set of skills and tools that anybody can learn and implement. We are creating a series about being a consultant so you can harness the power and reframe how your clients see you.
Topics: vCIO Managed Services Providers IT Management Virtual Chief Information Officer IT Sales MSP Virtual CIO CIO IT Consultative Sales
7 min read
12 mistakes most MSPs make with their vCIO services
By Denes Purnhauser on Nov 20, 2014
The virtual CIO phenomenon is not new, yet the promises of the role have not been realized across the industry. Some mature IT managed services providers who believe they have a functioning vCIO practice, on closer inspection, still show challenges with delivery, scalability and profitability.
While we could go in depth to identify the root of these problems, instead here we'll highlight the twelve most common mistakes MSPs make with their vCIO. At the end of this article there is a questionnaire where you can measure yourself against other IT companies.
Topics: vCIO IT Sales Person Managed Services Providers Virtual Chief Information Officer IT Sales Business Building for IT Companies MSP Demand Generation for IT Companies Marketing for IT Companies Virtual CIO CIO IT Consultative Sales
2 min read
Building up a 45 people rock solid MSP
By Denes Purnhauser on Nov 6, 2014
Chris Day is a Maverick in the MSP world. He is running one of the most advanced and mature IT managed services providers with his partner Sharleen Oborowsky. I had a chance to have a chat with him and to dig deep on how they achieved that success in a short time.
Chris seemed to crack the code on growth: people and execution. He is an avid book reader, community builder, leader, and an authentic down to earth guy.
You can expect: great hints, tips, honesty, bold statements and no nonsense. If you are just a little serious about your managed services provider it is a must-watch video.
Topics: Managed Services Providers IT Management Business Building for IT Companies MSP
3 min read
Our first book: MSP 2.0 - The Managed Service Revolution
By Denes Purnhauser on Oct 15, 2014
I have to admit we haven't done a lot of blogging lately and there hasn't been a lot of new content, sorry. We do have an excuse: we have completed a book about the MSP 2.0 business model.
We got your awesome feedback on our content- thanks - including the observations that our ideas were all in little pieces, lacking real connection. We needed a more comprehensive and linear format to digest this new concept, and thought that the best way to do so was to write a book. Have a look at what we have to offer in this format, and how you can become a contributing part of the story.