Vendasta CEO Brendan King wants to lead his reseller partners, which range from local media sellers to vertical digital agencies to pure play technology companies, into a world where they sell a full cloud-based marketing technology stack using a monthly recurring revenue model. King believes it’s the key to reducing churn and driving better margins with digital marketing services.
Vendasta is a company that started in listings and reputation management and has since evolved into a full digital marketing platform for SMBs, sold through a now vast reseller channel. As King put it in our latest On Target podcast, Vendasta’s mission is to help its resellers become “cloud-based MRR (monthly recurring revenue) machines.”
A going in premise for Vendasta is that SMBs need someone to help them level the playing field with brands. “Small businesses have it tough, They don’t have the technology that they need. They are getting Starbucked and Amazoned and Wal-marted to death,” King said.
And King firmly believes that small businesses would rather acquire this field-leveling marketing technology from a single source they trust rather than picking and choosing providers for different point solution. Our Tech Adoption Index data backs King up.
According to Wave II of the TAI data, half of SMBs show a preference for purchasing their small-business technology from a single source. It’s important to mote that the TAI survey question addresses the full suite of small business cloud solutions for both the front and back office, and not just marketing technology. But the point remains that small businesses want a single source that saves them time and reduces complexity.
King is also bullish on the idea that self-service will become a much bigger component of customer acquisition in the future and companies need to prepare for a much faster shift to the inbound, self-purchase model already common to cloud software.
“We are trying to get our partners there,” King says in the interview, noting that Vendasta will invest almost $9 million in its platform this year. “We are closer every day to providing that for our partners.”
Again, data from the Tech Adoption Index supports King on this point. According to Wave II data, 60% of SMBs that have acquired small cloud tech for their businesses did so via direct self purchase. It’s a signal that as the local space moves more from contract-based media sales to MRR based SaaS sales, self-purchase will be the norm for all but the highest-spending accounts.
And the driver of this, King believes, will be ease of use of the solutions themselves. “As things become easy to do, like pushing a button to update your listing, you will not really need an on premise rep to make that sale.”
You can listen to the full podcast here: