Download - MDU 201 - FINAL
FINDING THE RIGHT PROSPECTS MDU 201
Welcome
» 2014 Property Launches
» BULK: 19,736 units
» DTH: 57,117 units
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» Top Performers
• BULK: Sky Satellite
» Grew bulk portfolio by 47%
• 10K total bulk units
• DTH: Broadband Holdings
» Launched 7,825 DTH units in 2014
• 220% YoY growth
Overview
» Why being an MDU Dealer is a great opportunity
» How to identify profitable properties
» What a dealer should focus on to drive new leads
» What a dealer needs to know when qualifying a lead
» Important facts for Right of Entry agreements
» Guidelines for all MDU Dealers to follow
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Opportunity
» DIRECTV technology allows MDU Dealers to be profitable in any size property, anywhere in the United States
» 25% of U.S. households are in MDUs
» New MDU housing starts are at all time highs, at a rate of 444K in April 2015
» FCC rulings have provided key advantages for the PCO
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Targets
» Large MDU
• DIRECTV D2 Advantage
• Capital Intensive
• 3.2M Hi-Value Units
• Double and Triple Play
• ROE Critical
» Small MDU
• DIRECTV D2 Advantage Lite
• Limited Capital Investment
• Similar to DOB
• 9M Hi-Value Units
• Single Play (DIRECTV only)
• Simple ROE
Buildings > 20 units
Buildings < 20 units
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Grow Your Business
» Bulk Properties
» Direct-to-Home Properties
• Owner-Funded Models
• Dealer-Funded Models
» Double and Triple Play Options
» Footprint – Current/Expansion
» Core Strengths and Opportunities 6
Identify Profitable Properties
» How to select quality properties
• What are the demographics onsite?
• Is it owner occupied or renter occupied?
• Can you secure marketing rights?
» Uncover potential cost uplift & profit blocks
• Is a post-wire required?
• Do they have separate home run wires for video?
• How many competitive providers are on site?
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Dealer Profitability
» Pre-filled with average dealer metrics
• ARPU, CSF, PPC, Net Gain, Pen, Churn, Package Mix
» Focus on metrics which have largest impact on profitability • Build-out Costs/Charges, Service-to-Base Ratio, Revenue Share, G&A
» Service-to-Base ratio = (# of service calls/month) / (total subs)
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Dealer Profitability
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Dealer Profitability
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Dealer Profitability
5 Year Profitability Comparison (1k units)
Protection Plan - DTH
$6/sub $238k
No Charge $181k
Service to Base Ratio - Bulk
2% $441k
6% $214k
Penetration - DTH
25% $216k
15% $129k
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Lead Sources
» Prospecting
• Importance of prospecting
• When to prospect
• Guard your calendar
» Hunting and farming
• Effective prospecting
» Referrals
• Ask for more business
• They have more properties
• Who else do they know?
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Lead Sources
» Networking
• Tradeshows
• Association participation
• Board activities
• Networking events
» Databases
• Nielsen Mapping Tool
• Multifamily Data
» Co-branded Trade Ads
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Lead Sources
» National brand recognition
» Now featuring… DIRECTVformultifamily.com
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Keys to Relationship Building
» You’re THE problem solver offering solutions
• Remember, you’re an industry expert
• Listen, verify your understanding, identify and solve!
• Always keep in touch
» Face-to-Face
• Re-creation of the person-to-person age
• E-mail & phone calls vs. in-person encounters
• Effective sales calls, when they aren't sales calls
» Performance
• Provide quality service
• Responsiveness to resolving any issues
• Build onsite relationships with property staff and owners
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Prepping the Proposal
Sell a solution
Identify the problem Provide a solution that fits their needs
Manage expectations
Be a trusted advisor Set clear expectations
Educate the owner Understand the
technology Understand finances & opportunity positioning
Bring deliverables
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Solution Selling
What To Sell
DIRECTV Brand
DIRECTV MDU
Technology
MDU Programs Benefits to
the Owner
Sell Yourself
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The ROE
» Become very familiar with the ROE
• Why the term is important for you and DIRECTV
• What can be changed and what can’t
• Ability to explain terms to the client and their importance
» ROE protects your ability to gain subscribers
• Define exclusivity and marketing rights
• Can you hold events and door hang
• Think ahead!
» Be flexible
• You need ownership support
Keep Sales Moving
» Explain timelines
• Construction and ROE processing
• Customer requested completion times
• Be ready upon first occupancy
» Use the correct agreement
• Short Form
» No negotiation
» Simple terms
• Long Form
» Detailed rights
» Compensation provisions
• DIRECTV D2 Advantage Lite
» One page
» Month-to-month
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Closing The Sale
» Follow up in timely manner
• Follow up weekly with on deals on the verge of closing
» Request timeline for decision
• Place expiration dates on your bids and reference them when closing
• Explain importance of a steady schedule
» Ask for the sale
• Don’t be afraid to ask
» Ask for more business
• When the deal is done, ask for another one
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The Sales Cycle
» Limit the amount of properties with 12-18 month sales cycles
» Set proper expectations with owner
» Have the right mix of properties
• HOAs
• Small properties
• REITs
• Portfolios
• Bulk
• Exclusive access
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Summary
» Let’s grow the MDU space
• Millions of units with no systems
• DIRECTV installs 50k residential activations monthly in MDU buildings
• More opportunities than ever
• Set goals and close sales!