dan3

The main idea of this information is that the telecom industry is shifting towards a focus on monthly recurring revenue. Selling equipment alone is no longer enough, and VARs (value-added resellers) need to evolve in order to stay relevant. The shift is driven by customer demand for solutions and predictable monthly expenses. There are three main paths for VARs to make this transition: partnering with established service providers, mergers and acquisitions, or becoming an ITSP (internet telephony service provider). Each path has its own opportunities and challenges. Partnering allows VARs to leverage existing infrastructure and expertise, while mergers and acquisitions and becoming an ITSP require more investment and commitment. There are also hybrid approaches, such as using platforms like SwitchConnects, that allow VARs to offer a wider range of services without building their own ITSP infrastructure. It is important for VARs to do their research and continuously learn in order to su Hey there, you've been digging into some really interesting stuff lately, exploring ways to build those consistent income streams in telecom, monthly residuals instead of just like one-time equipment sales. And you're really on to something big here, and you sent over that YouTube video with Dan Baldwin. And by the way, smart move, he really knows his stuff. He does. It's the perfect jumping off point for our deep dive today. It really is, and you've clearly been paying attention. Oh, yeah. To the changes happening in telecom, because Baldwin's message is spot on. So true. The old way of doing things, just selling equipment. Right. That ship is sailing. It's true. He's basically saying VARs need to evolve, or they risk being left behind. And a lot of this boils down to one single concept, monthly recurring revenue. Exactly. And what's fascinating is why this shift is happening now. Okay. It's not just about technology. It's about what customers want. Right. Think about it from the perspective of the businesses that you work with. They're not looking for just boxes anymore. They want solutions. Okay. They want things like cloud services, network management, cybersecurity, all bundled into a predictable monthly expense. Which makes perfect sense in today's economy. Absolutely. Having that reliable recurring revenue stream, it's not just about peace of mind. Right. Although that's definitely a bonus. Of course. It's about building a more resilient and valuable business. Okay. It impacts everything from your ability to secure loans to how investors view your growth potential. It's huge. Oh, okay. So we've established that monthly recurring revenue is the name of the game. Right. How does an equipment VAR, someone who's used to that traditional model, actually make this shift? Yeah. I mean, Baldwin doesn't sugarcoat it. No. He says, this transition is not going to be easy. He points out some real challenges. What are they? VARs often lack the in-house expertise to manage complex network services, and there can be significant upfront costs associated with transitioning to this new model, but, and this is crucial, he doesn't just highlight the problems, he offers solutions. Okay. He outlines three main paths for VARs. Okay. Let's hear it. Partnering with established service providers, mergers and acquisitions, or taking the plunge to become an ITSP themselves. Okay. So let's break those down. Okay. Because I'm guessing each one has its own opportunities and challenges. Of course. The first one, partnering, really stood out to me in the video, especially how Baldwin talks about the master agency model. He specifically mentions Intellisys, now part of ScanSource, and their cloud services university. Yes. I have to admit, when I heard that, I thought, okay, that sounds intense, but in a good way. Yeah. Like they're not messing around. There's a reason that resonated with you. Okay. The master agency model is particularly interesting because it allows VARs to leverage existing infrastructure and expertise. So instead of reinventing the wheel- Exactly. Yeah. I got it. They're partnering with companies that already have the network, the technology, the support systems in place. Right. And it's not just about infrastructure. Right. They're also providing the training that VARs need to thrive in this new world. Exactly. Remember that part of the video where Baldwin plays the clip of Andrew Craig Boll? Yes, I do. He's a big deal at ScanSource. He is. And he's basically telling a room full of equipment VARs that they have this incredible opportunity to become trusted advisors in the cloud space. Powerful. It was like a light bulb moment. It was a great analogy. He even called them the Navy SEALs of the telecom channel. He did. I love that. It's a powerful analogy. It is. And it gets to the heart of why the master agency model can be so effective. Right. A good master agency provides training, support, access to exclusive deals. Wow. They'll even provide financial assistance in some cases. Wow. Really? In some cases. Wow. They're invested in your success. So your success is their success. I love that. And it's not just theory. Right. Baldwin shared that example of an equipment VAR who went through that cloud services university program. Yes. And they made a huge jump in their cloud sales after I think they said their closing rate nearly doubled. It underscores the power of having a supportive partner who can really guide you through all the complexities of this market. Right. It's so important to have a partner. But you're right. It's not just about picking a name out of a hat. Right. How does a VAR go about finding that perfect match? It's a bit like dating actually. You wouldn't just marry the first person who offered you a decent cup of coffee. You'd want to make sure you share similar values and goals. Right. Communication style. It's the same with master agencies. Makes sense. Do your homework. Look at their track record, the services they offer, the support they provide. Talk to other VARs who have partnered with them. Word of mouth is huge. It is. So it's all about finding that win-win. Right. A partnership where both sides benefit. Exactly. But partnering is just one path. Right. What about those who might be thinking bigger, wanting more control over their destiny in this new world? Right. That's where mergers and acquisitions come into play or even becoming an ITSP. Goldwyn doesn't shy away from those paths, but he does acknowledge they require a different level of investment and commitment. Makes sense. I just saw that story about George Barney who essentially created this genius model of bundling hardware, software, and services into one offering. It's smart. It's such a smart approach. It is. Because it addresses a major pain point for customers dealing with multiple vendors and bills. Exactly. That story highlights the appeal of becoming an ITSP. It allows you to control the entire ecosystem from the hardware to the software to the ongoing. Yes. Service and support. He kept using that phrase. Yeah. Owning the firewall. Yes. What does that actually mean? Owning the firewall essentially means you're the primary gatekeeper of your client's network security. Okay. You're not just selling them a service. Right. You're managing a critical aspect of their business operations. It's huge. This gives you much greater control over the customer relationship and opens up opportunities for creating stickier, more valuable service offering. It sounds incredibly powerful. It is. But also incredibly daunting. Right. I imagine becoming an ITSP is a massive undertaking. It is. Requiring a whole different level of expertise and resources. You're absolutely right. Right. It's not a decision to be taken lightly. Right. It requires significant investment in infrastructure staffing. Right. Ongoing training. Wow. It requires regulatory hurdles. Oh, yeah. I'm sure. And compliance requirements to navigate. Makes sense. But Baldwin points out that for some VARs, particularly larger ones with existing infrastructure and a strong technical team, it can be a game changer. So it's not for everyone. Right. But for the right VAR, it could be the key to unlocking a whole new level of success. It makes you wonder if there's some kind of middle ground. Yeah. That kind of bridges the gap. Right. Between partnering and that full-on ITSP leap. You're reading Baldwin's mind. Yeah, am I? He actually addresses that. He talks about platforms like SwitchConnects. Okay. Which provide a sort of hybrid approach. Okay. VARs can use SwitchConnects to offer a wider range of services. Like what? Think unified communications, contact center solutions. Right. Even cybersecurity. Oh, yeah. Without having to build out the entire ITSP infrastructure themselves. So you're saying it's like having an ITSP in a box. In a way, yes. You get to be the hero. Right. Offering all those in-demand services. Right. But without the same level of investment and risk. Exactly. It allows VARs to kind of dick their toes into the ITSP waters. Okay. Test different service offerings and scale their business more gradually. Okay. It provides flexibility and control. Right. Which are crucial in today's telecom landscape. This is why I love doing these deep dives with you. Oh, yeah. We don't just scratch the surface. We go deep. We unpack these things. We explore all the angles. We do. And what I'm hearing from Baldwin is that regardless of where you are in your VAR journey. Right. There's a path to building that recurring revenue model. There is. That you're after. You got it. It's about recognizing the opportunity and taking action. Right. As he put it, don't wait. The time is now. He's spot on. Isn't he? The telecom landscape is shifting quickly. It is. The VARs who embrace these changes. Right. Who are proactive about adapting their business model. Okay. They'll be the ones who not only survive. Right. But thrive. But thrive. Okay. So for our listener who's ready to make things happen. Okay. What are some of the most important takeaways? Well, the first is simple. Okay. Do your research. Okay. Whether you're vetting potential master agents. Right. Whether you're scoping out acquisition targets. Mm-hmm. Or considering the ITSP wrote, knowledge is power. Knowledge is power. Understand the lay of the land. Okay. The key players. The technology. The regulatory environment. Don't just jump in head first. Exactly. It's about making informed decisions. Right. Not impulsive ones. Exactly. Right. The second takeaway builds on that. Okay. Never stop learning. Okay. The cloud network security unified communication. Right. These are constantly evolving fields. Right. The more you invest in your own education and the development of your team. Yeah. The better equipped you'll be. Of course. To navigate the twists and turns ahead. Right. And that doesn't mean like expensive certifications or anything. No. Not at all. There are tons of free resources. There are. Webinars, online communities. Absolutely. There's a wealth of knowledge available. Right. Often for free. It's out there. You just have to be willing to look for it. Be willing to seek it out. I love that. And that leads to the final takeaway. Okay. Don't be afraid to experiment. Okay. Start small tests, different approaches, see what resonates with your customers, and iterate based on what you learn. So what works for one VAR might not work for another. Exactly. It's about finding the path that aligns best with your unique strengths and goals. This has been great. I always learn so much from you. Well, thank you. To our listener, I'll leave you with this. Okay. Instead of seeing all these changes as threats, you view them as opportunities to build a more future-proof and profitable business. Right. Until next time, keep asking the right questions, keep exploring, and keep diving deep.