The Managed Services Model
Managed services involve an ongoing arrangement where a provider handles specific business functions for a client, typically IT support, cybersecurity, telecommunications management, or cloud services. For sales agents, managed services are attractive because they almost always involve monthly recurring contracts with corresponding trailing commissions.
Why Businesses Buy Managed Services
Businesses increasingly want to focus on their core activities and outsource everything else. A manufacturing company does not want to manage its own IT infrastructure. A law firm does not want to handle its own cybersecurity monitoring. Managed services let them access professional grade capabilities without building internal teams.
This trend is accelerating, which means demand for agents who can sell managed services is growing.
Understanding the Value Proposition
The value of managed services comes from three angles. First, cost predictability, because a fixed monthly fee replaces unpredictable break fix expenses. Second, access to expertise, because the client gets a team of specialists for less than hiring one full time employee. Third, risk reduction, because professional monitoring and management reduces the chance of outages, breaches, and compliance failures.
The Sales Cycle
Managed services sales typically take longer than product sales because the client is committing to an ongoing relationship. Expect a sales cycle of 4 to 12 weeks for mid market clients. The process usually involves discovery, a site assessment or audit, a customised proposal, and contract negotiation.
Building Your Knowledge
You do not need to be a technical expert, but you do need to understand the basics well enough to have credible conversations. Learn the key pain points that drive businesses to managed services: downtime costs, security incidents, compliance requirements, and staff turnover in technical roles.
Commission Structures
Managed services commissions typically include an upfront component for the initial sale and a trailing commission of 5 to 15 percent for the life of the contract. A single managed services deal worth $5,000 per month at 10 percent trailing generates $500 per month in recurring commission. Build a portfolio of these and the income becomes substantial.
Finding Managed Services to Sell
Many managed service providers actively recruit independent agents because their internal sales teams cannot cover the entire market. Zepys connects agents with agencies across various industries, including managed services providers looking for sales representation.
Retention Is Your Responsibility
In managed services, customer retention directly impacts your trailing income. Stay in touch with your clients, attend quarterly business reviews where possible, and act as an intermediary when issues arise. Your ongoing relationship is the glue that keeps the client with the provider.