Case Study

How a White Label Partner Helped a VAR Transform a 7 Figure Opp into an 8 Figure Opp

Introduction

In the competitive landscape of technology solutions, Value-Added Resellers (VARs) often face challenges in scaling their revenue streams. However, by partnering with a white label Managed Service Providers (MSPs), VARs can unlock new opportunities for growth and expansion. This case study examines how such a partnership transformed a 7 figure transaction into a lucrative 8 figure opportunity.

Background

The VAR specializing in enterprise software solutions and network infrastructure, had a robust portfolio of products and services catering to diverse industry verticals. Despite its strong market presence, the VAR struggled to maximize revenue beyond traditional one-time sales transactions. Recognizing the shifting landscape towards subscription-based models, the VAR sought to capitalize on recurring revenue streams but lacked the necessary infrastructure, experience and expertise to implement a monthly recurring model.

Challenges

  1. Limited vision: The VAR reliance on one-time sales limited its ability to generate consistent revenue streams.
  2. Evolving customer demands: Clients increasingly preferred subscription-based services over upfront purchases, necessitating a shift in the VARs business model.
  3. Infrastructure constraints: The VAR lacked the resources, experience, and expertise to develop and manage a subscription-based platform effectively.
  4. Selling Value: The VAR was out of touch when it came to implementing a sales process that consisted of qualifying the opportunity and then putting the prospect through a series of questions to dive deeper into the prospects challenges and requirements.

 

Solution

The VAR decided to collaborate with a white label MSP Partner, a renowned provider of managed services specializing in cloud-based solutions, infrastructure management and SOC services. The white label MSP offered a comprehensive suite of services that was a perfect fit for the VARs service requirements.

The collaboration between the VAR and the white label MSP resulted in the development of a subscription-based platform tailored to the VARs product offerings. The white label MSP leveraged its expertise in professional IT services to design a scalable and resilient platform capable of handling user demands. Additionally, the white label MSP implemented robust security measures to safeguard sensitive customer data, instilling confidence among the VARs clientele.

Furthermore, the white label MSP assisted the VAR in transitioning its sales model from one-time transactions to recurring subscriptions. Through targeted marketing campaigns and customer education initiatives, the VAR effectively communicated the value proposition of its subscription-based services, driving adoption among existing and prospective clients.

Results

Revenue Growth: Within the three months of partnering with the White Label Managed IT Service Provider, they converted a 7-figure opportunity into an 8-figure opportunity. The initial sale was going to be a one-time transaction for the VAR. The VAR requested the white label partner sales staff to attend the meeting so they could properly qualify the client. Long story short, the MSP sales team put the client through a sales process which was the direct result of converting the opportunity from 7 figures to an 8-figure deal.

Expanded Market Reach

By offering subscription-based services, the VAR expanded its market reach beyond traditional clientele, attracting new customers seeking flexible and cost-effective solutions. Creating a partnership with the white label MSP helped the VAR implement and deliver a professional services model. This allowed the VAR to cater to a broader customer base without compromising service quality.

Customer Retention

The subscription-based model fostered stronger customer relationships, as clients benefited from ongoing support and regular updates. The VARs proactive approach to customer engagement, coupled with the white label MSP responsive support services, bolstered customer satisfaction and loyalty.

Enhanced Competitive Advantage

By embracing subscription-based services, the VAR gained a competitive edge in the market, differentiating itself from rivals still reliant on traditional sales models. The recurring revenue generated through subscriptions provided the VAR with a stable financial foundation, enabling it to invest in innovation and expansion initiatives.

Conclusion

Through strategic collaboration with the white label MSP, the VAR successfully transformed a single 7 figure transaction into a Monthly Recurring Revenue opportunity that would generate 8 figures over 5 years. By embracing a subscription-based model and leveraging the white label partners managed services, the VAR achieved unprecedented growth, expanded its market presence, and established itself as a leader in the technology solutions landscape. This case study underscores the transformative power of partnerships in driving business success and unlocking new avenues for revenue generation.

About Single Point of Contact

Single Point of Contact is one of the largest White Label Managed IT Service Providers in North America. Founded in 1999, we have a proactive approach to information technology (IT) solutions and security services, which gives our clients the freedom to focus on their business instead of worrying about their clients’ networks. We’re qualified to assist with all phases of IT management, security, cloud solutions, procurement services, and complex projects. To learn more about how our services can benefit your IT organization, don’t hesitate to Contact us today.

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