The Channel Surfers - Episode 66 - "Building a Revenue Generating MSP Program with Jon Purcell"

In this episode, The Channel Surfers blends candid sales-shop talk with practical channel strategy and grounded AI insights. Jeff and John interview Jon Purcell, who runs Untapped Channel Strategy, to unpack how to de-conflict MSP and direct sales motions, compensate fairly, and leverage AI without the hype. Key threads: customer-first principles, smart comp plans, rules of engagement, AI as a productivity multiplier (not a magic replacement), and why MSP is a distinct economic model—not “cheaper VAR.” Key Discussion Points and Insights - Customer-first sales alignment - John’s guiding principle: do what’s best for the customer. When both direct reps and MSPs are involved, comp plans should ensure reps don’t fight over credit and customers aren’t forced into unnatural licensing choices. - Practical approach: “We’ll take care of our people on the back end.” Comp everyone involved so the customer can consume in the way their business needs. - Comp plans that reduce friction - Jon’s “50% commission on MSP-assisted deals” POV: Many reps will gladly accept a lower rate on low-effort MSP-driven volume if it frees time to build pipeline elsewhere. - Design for two motions: - MSP-focused partner managers measured on total MSP-sourced revenue. - Direct reps with clear rules of engagement and comp when their accounts transact via MSPs. - Predefine rules to avoid ad hoc decisions. Successes snowball; failures snowball faster. - Risk of organizational rumor spirals - Jeff likens unmanaged friction to a “boat taking on water.” John notes small comp conflicts can become “catastrophic” through whisper networks. Preempt with policy, clarity, and consistent execution. - AI in MSP and channel motions: helpful, not magical - Jon’s usage: - Research and pre-call prep: saved “days, if not weeks.” - Market monitoring and personal productivity: daily brief that prioritizes tasks and calendars. - Content drafting: Claude drafts LinkedIn posts; John still edits and schedules—human-in-the-loop is essential. - Enterprise constraints: - Vendor-side and large MSP stacks often lock down AI tools (Gemini, ChatGPT, Copilot), reducing them to basic chatbots. Unlocking compliance and data-access safely is key to useful outcomes. - Overhyped claims: - AI rarely “removes your job.” You can’t “open Claude and go to the beach.” It augments; it doesn’t replace skilled execution.