Using a ‘Master Agent’ to Build Passive Revenue for Your Managed Services Business
Recurring revenue is what keeps the lights on in Managed IT. The shift toward recurring services is what created the ‘MSP’ model that many IT Consulting and even Computer Repair companies have now conformed to. But, what if I told you there is an even better income model?
This model that I speak of is a passive revenue model. To be clear, the word “passive” does NOT mean that you sit around on a beach, doing nothing and collect money for it (click-baity stock photos would depict otherwise). What it DOES mean in the context of this article, is generating additional revenue streams for work that you are likely already contributing or fits into your existing workflow, with the customer’s best interest still in mind.
The best way that we found to build a passive income stream for your Managed IT Business is through the use of a Master Telecom Agent.
What is a Master Telecom Agent?
If you have ever been to an industry trade show or expo, you likely came home with a business card from one or several cloud, telecom, or internet service provider Channel Managers attempting to recruit you to sell or promote their services. It is most often that these are “commission” deals, allowing you to enroll in their agent program and receive compensation should you pass them along some business.
The problem is, enrolling in every one of these programs with every vendor is a hassle and keeping track of whether or not you are being compensated fairly is almost impossible. This is where a “Master Agent” comes in.
Getting approved to work with a Master Agent will allow you instant access to almost every global partner program in the channel. They make it very easy to get multiple competing quotes for comparable services, allowing you to help your customer make better buying decisions and act as a true third party consultant.
The best part about working with a master agent is that all commissions are processed and paid through the master agent themselves on a monthly basis, giving you one point of contact and interface to track all of this income. They also offer better recurring commission rates than a direct partnership since they are responsible for such a high volume of sales.
Monetizing Customer Moves & Infrastructure Projects
The best time to rack up this passive monthly income is through customer moves and infrastructure upgrades. When your customer needs to move their network to a new location, or add a location to their existing infrastructure they will likely come to you first.
Using your Master Agent, you can now quickly and easily provide your customer every ISP option available to them, as well as other VoIP or Telecom services they may need (should you not provide these directly). All of the quotes are provided from the Master Agent and there is no need to contact the service providers directly. When your customer signs off for the service, you hand the contract back over to the Master Agent, who processes and schedules the order.
After the order is processed and services are deployed, you will begin receiving recurring monthly commissions shortly after. It’s that simple! You can support the infrastructure and internet service the same as you always would, leaning on the service provider directly for disruptions that are not site-related. Your customers are invoiced directly from the service provider and for every payment, a portion trickles down to your account.
As you complete more and more of these projects and close deals, your revenue will continue to build, eventually making it a substantial contributor to your bottom line.