The Secrets of Selling SIP Trunking (SP-06) Room 304-C Joel Maloff, Maloff NetResults

Introduction Secrets of Selling SIP Trunks – Designed for the sales team in the field today looking to close business opportunities. This presentation contains materials covered in more detail in the online program “SIP Trunking for the Sales and Marketing Professional,” available from The SIP School (

Secrets of Selling SIP Trunking Overview Identifying YOUR SIP Trunking “Sweet Spot” and what to avoid Interpreting the customer’s Status Quo – Uncovering areas of added value Creating a cost justification/ROI model Overcoming Objections Closing the Sale Keeping the Sale

The SIP Trunking “Sweet Spot” Each ITSP is different. – What is your “sweet spot” Number of concurrent calls? Number of locations? Minimum current telephone bill? Number of PRIs total and/or per location?

The SIP Trunking “Sweet Spot” Number of minutes per month? – Incoming? – Outgoing? Local, domestic long distance, international? Inbound Toll-free? Specific vertical industries? Specific geographies?

The SIP Trunking “Sweet Spot” As a sales team, knowing who and where to target can be the difference in making your numbers or failing to perform.

Interpreting the Status Quo Reviewing an actual customer bill for cost savings Identifying areas of “soft” savings

Finding Added Value Consolidation of offices Creation of “Virtual” presence – Domestic – International

Cost Justification and ROI It is easy to assert cost savings; it takes work to prove it. “Hard” SIP trunking cost savings come from three primary areas: – Usage sensitive call charges – Fixed price services (PRI, DSL, et al) used for voice services

Cost Justification and ROI – Fees and Surcharges EUCL – The End User Common Line (EUCL) charge is a federally regulated monthly service charge applied to certain local voice service offerings. RCRF – The Regulatory Cost Recovery Fee (RCRF) – Imposed by some carriers on business and residential long distance customers – used to recover costs associated with Federal regulatory fees imposed upon these carriers. Others

Cost Justification and ROI Calculating potential savings – Understand current costs by examining a current bill if possible. Try to make sure that it is a representative month and not an anomaly. – Identify usage charges and their breakdown regarding local, domestic long distance, and international. – Identify fixed monthly charges for PRIs, DSL, and surcharges.

Cost Justification and ROI Some vendors do offer ROI tools for SIP trunking. – Sales/ESIPCalcLP/index.aspx?ListSource=Press Release Sales/ESIPCalcLP/index.aspx?ListSource=Press Release – Unfortunately, the level of detail may not be sufficient for you – unless you are an XO salesperson!

Cost Justification and ROI What are the challenges with “overview” ROI tools? – Total Number of employees Minimum of 50 – Number of Physical Locations Minimum of 5 – Percentage of Inter-company calling – Asserted savings is 38%! What is missing from this picture?

Cost Justification and ROI

Calculating potential costs – Identify fixed monthly charges for PRIs, DSL, and surcharges. – Calculate the number of SIP trunks (concurrent calls) and Internet bandwidth required using the spreadsheet on the next slide minutes = 22 working days X 8 hours X 60 minutes On the average, 17% of calls occur during the “busy hour.” Each “concurrent call” requires approximately 80 kbps using the G.711 codec (50 kbps for G.729).

Cost Justification and ROI

Calculating potential savings and value – Include all costs for all solutions – Consider surcharges and fees such as EUCL (Approximately $40 per PRI or T-1 monthly) and RCRF (Approximately 3.5% of all domestic and international calling charges) Most ITSPs do not include EUCL and RCRF fees. – Show the monthly total costs, percent saved via SIP trunking, and the estimated annual savings.

Cost Justification and ROI

Simple tools provide simplistic answers; business is complex today! If you want to deliver quality to your prospects, preparation is in order; they will welcome your expertise!

Overcoming Objections Conceptual – Internet Telephony is here to stay AT&T asks the FCC to allow shut-down of their traditional PSTN services in favor of IP Telephony. “… VoIP integrated access, SIP trunking, hosted IP- PBX/IP Centrex and managed IP-PBX services revenue, is set to double over the next five years, to exceed $20 billion by 2015…. Overall, the growth momentum seen in 2009 was sustained in the first half of 2010 as companies continued to shy away from capital investments, opting, instead, for the OPEX model of hosted VoIP services.” (ABI Research, September 2010)

Overcoming Objections Technical Financial Emotional

Frequently Asked Questions Customer prospects will likely have questions about SIP trunking in general and your services specifically. Creation of an FAQ for inclusion on your web site and in proposals can be a valuable tool.

Closing the Sale ASK FOR THE ORDER!!! Make it easy. Make it simple. Make it painless.

Keeping the Sale Minimize churn! – Keeping and growing existing customers is more valuable than new sales. – The salesperson’s job is NOT done when the service agreement is signed. Ensure that service is delivered as sold and when promised. Maintain regular contact to avoid unexpected churn, expand existing services, obtain referrals, and solicit testimonials.

Conclusions Successfully selling SIP trunking services requires a combination of good old fashioned sales skills and knowledge of the SIP trunking environment beyond just surface information and platitudes. Customers NEED SIP Trunks – you need to be able to help them make the buying decision from you!

For More Information Joel Maloff, Maloff NetResults – – – The SIP School –