AppDirect’s MSP event is going on this week in Chicago (Avant’s backyard). AppD said 22% of its base of 10,000 technology advisors are transacting more than $1 million a year in end user billings. (I want to call BS on the 10K but why bother).
Yet $1M in annual billing is simply $83K per month. On average that comes to about $10K per month in commissions – or less if it is all SaaS sales. So 22% make about $100K per year. That means that 78% make way less than $100K per year!!!! Not even a quarter of their ten thousand make $100,000. You can extrapolate that 22% make less than $1500 per year (the minimum check is $100 per month).
If a majority of those ten thousand are MSPs, then that AppD commission check is just a bonus on top of the UP TO $5M per year in revenue that 90% of US MSPs make. Now the Trusted Advisors without an MSP or VAR business better have another hustle!
A little more interesting is that AppD integrated into TD & Ingram.
“The marketplace company introduced integrations on its platform that give resellers the option to source technology SKUs from distributors Ingram Micro and TD Synnex.” No idea what this gets AppD, but I guess making it one pane of glass for VARs is nice. I guess this is an extension of the “Marketplace” concept.
Even more interesting is that AppD will do the end customer invoicing for partners! This gets AppD closer to the customer. This also is in the hopes that a Trusted Advisor that is not an MSP now has access to a billing platform.
The goal of all the TSBs is to get closer to the customer because it makes their data more valuable to investors. It is also the first step in cutting the TA out altogether, especially if your marketplace is open to customers (like AppD is) and partners encourage customers to self-serve.