VAR Helps Medical Records Firm Reduce Cyber Exposure
This VAR is increasing sales by selling Internet security software with its computers.
VARs looking to sell PC-based security solutions can learn from Jim Koo, president of the Notebookshop, a company that will produce $35 million in revenue this year. Koo has reduced his customers’ notebook computer service calls by 80%. Did he improve the quality of the notebook hardware and application software? No. He convinced those customers that they needed to purchase Anti-CyberCrime software by Secure Resolutions for each of their computers. As a result of installing the Anti-CyberCrime software, his customers have experienced 80% fewer service calls with their notebook and desktop computers.
“We carry a number of brands of notebook computers such as Acer, Compaq, Fujitsu, HP, Sony, and Toshiba,” says Koo. “However, we sell only one type of antivirus software — Anti-CyberCrime software from Secure Resolutions.” What makes Secure Resolutions’ product different from competitive antivirus products is the value to MSPs (managed service providers), ISPs (Internet service providers), and other reseller partners. The Anti-CyberCrime product can be white-labeled and passed through to VARs’ customers on a shared revenue basis, providing revenue streams to VARs related to automated IT management and the increased frequency of the product installations, upgrades, reports, and other functions.
Sell Security Software To Increase PC Performance
Although the Notebookshop is not an MSP, it does generate additional revenue by selling the Anti-CyberCrime product. For instance, Koo recently sold 300 licenses of Anti-CyberCrime to Medata, a company that provides medical billing review services. “Medata offers a customizable bill review engine for both workers’ compensation and personal injury,” explains Koo. “That engine is loaded with all available state and federal fee schedules, Medata’s proprietary Reasonable Charge Database, and the ability to load unlimited preferred provider schedules. Providing that information quickly is key to Medata’s success.”
Medata was having problems with a well-known competitive antivirus product. After installing that product, Medata experienced performance problems affecting employee productivity. The company also realized that product was not preventing spyware from causing problems on its network. Medata employees heard a radio advertisement (more below on this) about Anti-CyberCrime and called Koo.
Medata tried one copy of Anti-CyberCrime and found the product eliminated the performance problems with the previous product, and it was able to stop spyware activity. As a result of that first trial, Medata purchased 100 copies of the Anti-CyberCrime software. With the success of the second trial, Medata purchased an additional 200 licenses so that all 300 of the company’s computers were protected. Although the purchase price of the 300 licenses is not public information, Koo has the potential to earn $8,700 in annual recurring revenue as a result of license renewals.
Don’t Overlook The Value Of Advertising
One of the ways that Koo has increased his sales is by advertising with two local radio talk show programs. In particular, Koo advertises the Secure Resolutions products on live talk radio. Each station presents a one-minute live testimonial about the Anti-CyberCrime product. The Medata account is an example of the success of the radio campaign.
Amazingly, Koo is earning 10% margin on notebook hardware — the industry averages around 7%. Koo attributes the higher margin to his 15-year relationships with many of his notebook vendors and the volume of notebooks he sells. The Notebookshop expects to see a 15% to 20% increase in sales this year. According to Koo, much of that increase can be attributed to selling the Anti-CyberCrime software.