PSP Channel Insights
Strategies & partnerships central to doing business  with the public sector

Stumbling Blocks to Creating Effective Large-Scale Sales Models
In the development of large-scale sales models, I usually see 2 areas that become stumbling blocks:
  • The paying of double commissions (or some version of monetary reward) for both the field rep that manages that agency and the BD rep that manages the large scale opportunity within that same agency.
  • Not recognizing that SI/Solution providers are Government Accounts. SYSTEM INTEGRATORS THAT RECEIVE 70%, 80%, 90%, 100% OF THEIR REVENUE FROM GOVERNMENT IT CONTRACTING ARE NOT  COMMERCIAL ACCOUNTS!! In winning large solutions opportunities, you need to have control of the Government SIs.
Signs That You're Creating
 Winning Partnerships

O

  • Channel partners are actively engaged in developing and executing strategies in support of selling your products.

  • Solution providers understand the value you bring to government and to their companies.

  • Prime contractors want you to join their teams.

  • You are working daily with your partners, developing repeatable solutions and crafting winning bids.

Channel Resources
Publications:
Washington Technology
GovernmentVAR
VAR Business
CRN
Federal Computer Week
Government Computer News
Government Technology

Government Executive

Organizations:
Government Contractors Council
Industry Advisory Council
Information Technology Association of America
National Association of State Chief Information Officers
Professional Services Council

Government IT Market Research

Organizations:
IFour

Share Your War Stories

If you've got a partnering story you'd like to share - win or lose - let me know and it could appear in the next issue of PS Channel Insights. 

To submit your war story, email Scott Lewis with "war story" in the subject line.  If you prefer the story remain anonymous, please indicate that in your email.

 

Third in a Series of Newsletters
Addressing Building Effective Partnerships

Building a Sales Model That Supports Selling Into Large-Scale SI/Solution Opportunities

How are you able to develop and manage a sales organization to focus on the large solution opportunities without jeopardizing your monthly transactional sales?

What sales models best address these different approaches in selling to Government?

First of all, you need to have business development people that know how to handle the larger solution opportunities, the type of opportunities that system integrators will bid and win.

How do you have the field sales that are responsible for specific agencies coexist and effectively work with business development managers/sales that are responsible for partnering with the system integrator and for getting on the winning team?

In developing the sales structure you need to consider:

  • Field sales reps should have a motivating pay structure based on transaction sales. Be careful not to develop pay incentives that takes their eyes off of the 30, 60, 90 day sales.
  • BUT create incentives that motivate field sales to assist in identifying and supporting large SI-type opportunities (even though they will NOT be responsible for managing and winning the large scale solution opportunities). You’ll need those extra eyeballs and agency knowledge in supporting business development (BD) efforts.
  • Consider partnering BD and field sales with a pay incentive to work together.
  • Create incentives for the field sales reps and BD large scale solutions reps to play nice and work together. (Yes, pay double commissions)
  • Develop infrastructure services that support BD efforts (technical, pricing, bid and proposal, legal, contracts….)
  • DO NOT pay your BD reps like a field transactional rep. They need to be paid and judged in the long term (pipeline development, SI relationships AND wins).

In the development of these sales models, I usually see 2 areas that become stumbling blocks:

  • The paying of double commissions (or some version of $$ reward) for both the field rep that manages that agency and the BD rep that manages the large scale opportunity within that same agency.
  • Not recognizing that SI/Solution providers are a Government Account. SYSTEM INTEGRATORS THAT RECEIVE 70%, 80%, 90%, 100% OF THEIR REVENUE FROM GOVERNMENT IT CONTRACTING ARE NOT  COMMERCIAL ACCOUNTS!! In winning large solutions opportunities, you need to have control of the Government SIs.

Good reps know how to make money. They will focus on where they will make the most money, period! Remember the commission plan drives behavior. So if you want your field reps to support your BD efforts in finding and winning large solutions and still have them focus on the day to day sales efforts, then build an incentive plan that is a win-win for sales and business development to work as a team.

And don’t forget, create the support services needed to win large scale solutions opportunities.

See you next month.

Scott Lewis
President
slewis@pspartnerships.com
PS Partnerships
www.pspartnerships.com

About PS Partnerships

President and CEO Scott W. Lewis has more than 15 years of experience in public sector information technology. As Group Publisher of Government Computer News and Washington Technology, Vice President of INPUT, Vice President of Partner Development of Micro Warehouse Gov/Ed and Vice President of ENC Marketing & Communications, Lewis has worked with numerous information technology firms in the development and execution of their channel/partnering business and marketing strategies into the Public Sector (Federal, State & Local)

Over the years, Lewis found that many companies either did not understand how or had difficultly in establishing the partnerships and teaming relationships that are absolutely critical for success in the government market. So he established PS Partnerships in July 2005 to focus directly on helping companies build strategies and partnerships for doing business in the public sector.

For more information about the services PS Partnerships provides, please contact us:
PS Partnerships LLC
607 Knollwood Drive
Falls Church, VA  22046
Scott Lewis, President and CEO
PHONE: 571.218.0288
slewis@pspartnerships.com

www.pspartnerships.com