Better Business Practices: How to Unlock the Power of Your Residual While Preserving Control

Our December 12th Telarus Tuesday Call welcomed Telarus’ VP of Financial Services, Piero Maniaci, and Director of Business Development, Ron McNab, where they discussed the Telarus Capital Program, which is fast, flexible financing to support your growth and vision. Click here to access the full recording to learn more:  https://lms.telarusuniversity.com/forums/topic/31582

Doug Miller: Welcome everyone. This is the weekly Telarus. Tuesday. Call for December twelfth, 2,023. I’m Doug Miller, Director of Order experience at Telarus, and the voice of Telarus.

Doug Miller: Thank you for joining us. you know it’s the holidays, but there have recently been some difficult and tragic losses among some of our friends and family in the Channel.

Doug Miller: and on behalf of all of us at Telarus. And in this community may I just echo a heartfelt thank you.

Doug Miller: To everyone who reaches out in love, friendship, concern, and support for those among us who are experiencing loss or heartache this season

Doug Miller: may we all find peace and solace in the love shown from others, and in the hope this season offers to us all what a wonderful community this is! Thank you all, and may you experience true peace at this singular time of year.

Doug Miller: Here, on last week’s call, we were joined by Telarus, Vp. Of advanced solutions for seek as Samantha Nelson. Sam led a conversation with the experts from ascent business partners around digital transformation, and how a scent uses a I to demystify customer experience. Bottlenecks provide holistic partnership perks and embody the ethos of elevating businesses to their pinnacle of digital prowess.

Doug Miller: Terrific new opportunities for Telarus partners. If you happen to miss last Tuesday’s call. You can access its recording at any time at Telarusuniversity.com

Doug Miller: well to day is the month’s second Tuesday, which features the Telarus tools, teams, and resources provided to partners that help your business grow.

Doug Miller: Our featured presentation is just a few minutes away, and will feature Telarus Vp. Of financial services, Piero Maniacci and Telarus, director of Vp. Of business development, Ron. Mc. Nab. Presenting the Telarus capital program, the most innovative financial solutions tailored for channel partners.

Doug Miller: and please believe I am being conservative when I say that this will be one of the most important presentations that you attend this year. I’m not kidding about this. We will be discussing your money all of this and more coming up on to day’s Telarus. Tuesday. Call?

Doug Miller: Well, it’s here, and it’s going by quickly. December is well under way. Only a few weeks left to get those sails in and qualify for this year’s Telarus Presidents Club to Cancun

Doug Miller: partners qualify by selling at least 125 k. In new MRR. This year

Doug Miller: and higher sold revenue can earn additional trips as well.

Doug Miller: But don’t forget that some of Telera’s suppliers have provided phenomenal offers that can also get you qualified at a much lower threshold for selling their specific solutions. We want to thank each of these airspring. CBTS. Dial, pad granite.

Doug Miller: Next Tiva, NHC.

Doug Miller: Peerless infob

Doug Miller: spectrum and zoom for these terrific offers. There is still time to qualify for Telarus Presidents Club in Cancun. We hope you’ll be joining us, and don’t forget that the top 10 selling Telarus partners overall world wide.

Doug Miller: We’ll join our chairman’s club.

Doug Miller: They will join us in May for an 8 day tour of Ireland, and you can get there contact Telarus to day, and we will help map your fourth quarter end of year strategy.

Doug Miller: We have heard no end to the compliments and the enthusiasm for the Telarus. 2023 technology trends report

Doug Miller: our partners have just received. Now the customer facing version of this report as well check your email for a link that will allow you to customize this report with your logo, your company description, and your chosen next steps. There’s also a how to guide for leveraging this report with your prospects, and it includes suggested talk tracks about our key insights.

Doug Miller: We’ve got a video from Jendimus and Tim Bassa, who have put together some great ideas for the report’s use as well.

Doug Miller: Telarus has done the research and is showing you the emerging technologies in which the industry is seeing the most interest. You’ll be able to uncover opportunities with cutting-edge solutions that boost your clients. Capabilities. It is all in your free Telarus technology trends. Report now customizable for your clients as well check the email and get your copy today.

Doug Miller: And it’s a great time to become familiar with the Telarus solution view modules. These are quick solution, assessment tools that ask your clients questions based on those clients, answers to prior questions, carefully guiding your conversation to ensure a focused, brief discovery of the appropriate contact centre solution.

Doug Miller: There is a cloud sales module, a cyber security module. And now a contact center module as well.

Doug Miller: This new tool is available now, as is the recorded launch call which can be accessed at Telarus university.com. Check it out and prepare to cash in on these lucrative opportunities with help from Telarus.

Doug Miller: Well, we and our suppliers offer many powerful training opportunities throughout the year, and this week is no different. Here are 2 we’re featuring, and we hope you’ll plan to join

Doug Miller: to day Tuesday at one PM. Eastern. It’s your chance to learn about generative AI from Cisco. And why generative AI will change collaboration forever. This will be a deep dive into generative AI and the web apps A. I underpinnings that help organizations improve business results, create massive efficiencies and leverage responsible. A. I practices.

Doug Miller: It’s a subject that always seems to come up in partner client conversations. If you join this Cisco webinar, you will learn how to discuss this like a pro Cisco’s generative A. I. Changing collaboration. Webinar happens to day at one PM. Eastern.

Doug Miller: Now, last month, you’ll remember we introduced partners to new Telarus, supplier in Gena.

Doug Miller: providing secure connectivity as a service to any location in the world, agnostic of networking technology, cloud provider or telecommunication carrier

Doug Miller: this Thursday, December fourteenth, at 11 A. M. Eastern. You’ll have an opportunity to chat with an expert from Angena about opportunities, technical capabilities and your customer business goals.

Doug Miller: You’ll get fantastic insights tailored to meet your needs and elevate your customer experience.

Doug Miller: There’s also an exclusive Ingena portal for our partners. You can check that out@Telarus.ingenna.net.

Doug Miller: and then join this Thursday’s webinar at 11 A. M. Eastern. Great new opportunities be sure, enjoying from new supplier in Jenna.

And this week we’re also featuring the following tremendous promotional and spiff opportunities, big chances to make big money

Doug Miller: first up from 1111 systems, close any security or connectivity. Deal with 1111 systems, and you’ll learn a spiff of one X on agreements of up to 36 months in length.

Doug Miller: or a spiff of 2 x. On agreements of 37 months or longer.

Doug Miller: Now the deals have to be worth at least 5 k. In MRR. And they need to close by December 30. First, to qualify, partners need to complete the 1111 sales professional training and certification course. But trust me, even if you weren’t doing it for the spiff, it is absolutely worth it.

Doug Miller: You can earn these valuable spiffs. Get the training and partner with 1111 systems now through December 30, first, and earn these terrific

Doug Miller: spiffs.

Doug Miller: and then we’ve got this offer from at and T on their safe and secure plus bundle promotion. The bundles had a price change and it’s been extended through March 2024. These 3 bundled at and T services include managed at and T. Internet Backup

Doug Miller: Dns, security advanced with mobile protection for 2 devices and free licenses of At and T. Endpoint protection with sentinel. One.

Doug Miller: 25% savings are available now on these bundles, and they are available through March. Keep your clients safe and secure. With these bundled offers from at and T.

Doug Miller: Well, a reminder to all of you that our chat window will be open for your comments and questions during to day’s presentation we will conduct real time. Q. And a. At the presentation’s conclusion. Today we are talking money.

Doug Miller: big money, and how to unlock the power of your residual while preserving your control. This is the Telarus capital program, offering the most innovative financial solutions tailored for channel partners.

Doug Miller: Tcp, as we call it, is fast flexible financing to support your growth and vision. Its funding aligned with your goals and designed to enable your growth at any stage of your business. You’ll be dreaming even bigger after to day’s conversation.

Doug Miller: Today I am very happy to welcome back to our call both Piero maniacsi. He’s Telarus, Vp. Of financial services, and Ron McNab Telarus, director of business development, Piero and Ron. Welcome to our Tuesday. Call how you doing? Thanks for having us. I’m excited.

Ron McNab: I’m always on our Tuesday call before in various capacities. But Telarus capital program is an opportunity that partners should not miss very excited for today’s presentation.

Ron McNab: Excellent?

Piero Maniaci: Yeah. I think. You know, Doug, when you position it as as things you can do with your money, or how to use your money.

Piero Maniaci: I think of it as how to use your money to generate more opportunity, or to create, more.

Piero Maniaci: more, tocreate more growth in your business, or to invest in new opportunities, maybe outside of telecom that can contribute to your you know your individual wealth.

Piero Maniaci: and grow in ways outside of

Ron McNab: telecom. So yeah, that’s one of the things we’ve seen is the diversification of your of your funds. Right? It’s that’s probably one of the been one of the biggest growth areas that we’ve seen. People utilize this tool for this this product. So it’s been exciting to work over with it for the last year.

Ron McNab: and to see the things that people have done

Ron McNab: to improve their position, and no better time now than be an agent. It’s amazing. Looking back on my career, I’m

Ron McNab: shocked that I haven’t been an agent

Ron McNab: actually disappointed that I haven’t been an agent to be to be truthful.

Piero Maniaci: So yeah, I think. You know, I know. What Ron said is that it’s a, you know, really exciting time to be a partner and be to be in this industry. You know, the industry seems such incredible growth. And you know it’s expected to continue to grow at record levels, for

Piero Maniaci: for you know, for the fe, for the foreseeable future. And you know for ever. All the partners on this call is the fantastic thing, and is that you built a business

Piero Maniaci: or are building a business in an industry that has some really fantastic long-term business fundamentals.

Piero Maniaci: It’s the reason why you’re seeing so much investment coming into the Channel

Piero Maniaci: and equity coming into the Channel space.

Piero Maniaci: You know, I think what differentiates Telarus capital from the other. You know, traditional financing options is that we’ve built a very unique product

Piero Maniaci: to help partners grow on their terms. So.

Piero Maniaci: You know where our structure, our financing, allows you to maintain your business and keep it intact. So

Piero Maniaci: we’re not purchasing your agency. We’re not looking for an equity position or aand partner.

Seat at the decision maker making table.

Piero Maniaci: We prefer that you continue to manage your customers and grow them following. You know the same methodology that has

Piero Maniaci: made you successful in the past. But what we what we do and Ron’s gonna run through some examples is empower agents to build their wealth

Piero Maniaci: in different ways, whether that’s the reinvestment or recapitalizing their agency or looking for other ways.

Piero Maniaci: To generate income and a mass assets.

Piero Maniaci: So

Piero Maniaci: you know, we’ve seen we’ve done close to 175 transactions now. So you know, a lot of agents have used our program. most of them are recapitalizing in their business. And they’re seeing a lot of growth.

Piero Maniaci: And what they know is, you know, through many years of prior success that they can trust their vision.

Piero Maniaci: You know their intuition. Hard work.

Piero Maniaci: And you know, continued

Piero Maniaci: dedication to their customers in growing in scaling

Piero Maniaci: via re via recapitalization has has been very successful.

Piero Maniaci: So we want. We want to help you capitalize on all your strengths.

Piero Maniaci: and then grow faster while you preserve full business control and autonomy.

Piero Maniaci: So if we go to the next slide, I’m gonna let Ron, you know. Take take, take, take it from here, but I’ll be in the background here to happy to answer any questions at the end of the

Piero Maniaci: at the end of the freezer.

Ron McNab: Right?

Ron McNab: I think that was a pretty good prelude to what we’re gonna talk about. I’m glad to be here. I always love to get a chance to be in front of an audience and seeing some of the top tech advisors come together to discuss new technology and brainstorm. How to capture more market share is exciting.

Ron McNab: it’s

Ron McNab: it’s pretty. It’s

Ron McNab: let’s flip to the next slide. No, it’s fascinating time to be a partner and have foothold in this industry the telecom industries seen fantastic growth and expecting to continue to grow at record levels.

Ron McNab: Foreseeable future. Yeah, I think you know, I think, Ron, so let’s go into the used case. I feel like I got, you know, a lot of the

Ron McNab: what slide is this? Piero? This is the second slide. Yeah. Okay.

Ron McNab: Excuse me.

Ron McNab: let me get to it.

Ron McNab: Okay, I’m gonna start with a couple of real life use case stories, Kate.

Ron McNab: we’re seeing a lot of agents looking to go via customer base acquisition. That’s happening a lot in this industry. Imagine if you could buy that agent’s customer base without tapping into your business, your business’s working capital

Ron McNab: without having to go to the bank for a loan without bringing a new partner or private investment that requires ownership, dilution, and increase your commissions. Well. we’ve done that. We’ve helped agents do exactly that by converting a portion of their commission base forward.

Ron McNab: Better yet.

Ron McNab: converting a portion of the Sellers Agents Commission forward to fund that acquisition. We just went through this with a couple of deals over the past few months and dive into the numbers.

Ron McNab: Purchasing agents knew of a retiring agent, let’s say, with 50,000 book of monthly commissions. The retiring agent, the sunsetting agent, was looking to sell that book of business for a million dollars.

Ron McNab: The buyer converted half $25,000 of that 50,000 into 1 million in upfront funds. Through the Tcp. Program

Ron McNab: we bought the base and the customer that buying agent walked away with an $25,000 additional

Ron McNab: MRC. In his bank in commissions and a new customer base. They could get good engage to sell with

Ron McNab: sounds pretty good, right, and, best of all, the buyer offered more than the seller agent roll up. So it was an easy decision for them.

Ron McNab: That situation is real life situation that

Ron McNab: we just closed one in September. Almost the exact numbers of this and

Ron McNab: the buying agent agent wanted to Sunset wanted was actually offered something from someone else. Little lower. We got him up to

Ron McNab: just over a million dollars for his book of business, and the agent that bought him ended up on the positive side didn’t even have to fund it on his own. We we helped fund that whole thing.

Ron McNab: Other telecom agency. Business users, we see, are leveraging a portion of commissions to recapitalize and hire salespeople to flow to salesperson, draw through pipeline growth, period.

Ron McNab: Other agents have converted a portion of their commissions to pay for Nrc. Equipment costs required to close projects.

Ron McNab: Some have invested in software, pipeline management tools, CIA Crm management tools

Ron McNab: that have helped increase their close volume and create efficiencies and sped up close timelines and led to quicker billables.

Ron McNab: Water agents converted a portion of commission to get a down payment he needed to skewer a larger loan

Ron McNab: to buy an Msp. Practice. It’s it’s just

Ron McNab: the diversity. And how this thing can, how this program works is amazing, and some of them use the program to reorganize or reform their ownership within the partnership or beginning a transition of their business

Ron McNab: owners have bought out partners that are less engaged have cashed out a portion of commissions in transition.

Ron McNab: and then transition business. The business and remaining residual to their children or successor

Ron McNab: on the non telecom agency side. Many agents have thought about other ways to diversify holdings and amass assets to build their own wealth

Ron McNab: one. They’ve acquired real estate

Ron McNab: commercial building to lease vacation properties. They’ll rent out a few times a year to help pay off the note.

Ron McNab: We all know real estate’s one of the best investment vehicles to generate wealth. It typically appreciates 3 to 5% every year and provides opportunities to generate passive income.

Ron McNab: Everybody knows about passive income, I hope

Ron McNab: investing in a market. Did you know that if you had invested 100,000 in apple 3 years ago, that investment would have grown to 319.

Ron McNab: It’s a huge profit. It’s 200% return on that investment.

Ron McNab: You’d see something similar for all of those, all the magnificent 7 stocks, apple Microsoft. Google, Meta, Nvidia, Tesla, Amazon.

Ron McNab: invest in investing in the Index Fund the S. And average a 10% return over the last few years

Ron McNab: acquiring franchise business is another model that gods had to go after 2 with occurring revenue stream.

Ron McNab: orange theory and hair salon leasing seats to stylus.

Ron McNab: while less frequently we’ve seen some agents use funds for lifestyle purchases. Excuse me.

Ron McNab: They bought beach houses for their family to enjoy.

Ron McNab: and not the 1 2 blocks from the beach.

Ron McNab: the one on the beach. They’ve gotten a boat or an Rv. They’ve always wanted, and they put the money to work for them, invest and appreciating assets.

Ron McNab: diversify your income sources, generate passive revenue. increase your personal wealth, think about ways you can improve your lifestyle.

Ron McNab: This is all of the things that we’ve seen and we’ve encouraged with our agents through this program for the last, I think 4 years that they’ve been. We’ve been doing the program. I’ve been here for a year, so

Ron McNab: I’ve seen it

Ron McNab: change some people’s lives. It’s been great. That’s been one of the great things. Pierre, can you go to slide 3?

Ron McNab: Our goal is to consult with you on your next opportunity. We’ll never pressure you into a deal with Telarus. Our business is doing great. The channel is growing, agents are growing.

Ron McNab: Telarus is growing. Our business is getting to do just fine. Whether you transact whether this transaction with Tcp. Or not.

Ron McNab: The Tcp program is here to help partners, considering tapping into some of their commission cash flow without selling their business or diluting equity.

Ron McNab: Our program was built on 5 foundational pillars.

Ron McNab: partner, independence, flexible financing structures

Ron McNab: up front capital, future sale, preservation and business growth.

Ron McNab: We recognize every partner’s unique and offers customizable solutions to meet your individual goals, get fast.

Ron McNab: frictionless financing that transforms, transforms your monthly recurring commission into working capital that works for you.

Ron McNab: monetize a portion of your commissions. close and execute on your new opportunity. continue to so receive commissions.

Ron McNab: monetize another piece for future opportunity or multiple future opportunities.

Ron McNab: retain the right to sell your businesses in the future. when multiples could be much higher.

Ron McNab: and continue to collect commisses on new sales

Ron McNab: that separates us

Ron McNab: in this, in in this space in this product set from others that are doing

Ron McNab: relatively same.

Ron McNab: Can you move a slide again? Slide 4, please.

Ron McNab: We get it you got

Ron McNab: when I attend the events, and I stand up in front of people, and I say, how many people have

Ron McNab: had people call them for acquisition. There’s not a hand that doesn’t go up. I get it.

Ron McNab: You’re all getting pinged repeatedly to sell your agency or your commission base. There’s a lot of options out there. Here’s how we’re really different.

Ron McNab: What we heard from agents has they’ve discussed under Tre and or transaction with Vc. Or private equity backed rolls up roll ups. It’s they don’t fully appreciate the nuance in their deal structure and or change in the business operations.

Ron McNab: Now, every offer’s a little different, but there are commonalities you consider with Vc. In equity, usually a very long process to close a deal, 3 to 6 months, and sometimes no deal.

Ron McNab: Hmm. Could opportunity cost losses.

Ron McNab: Many lost presidents, club trips and or sales, generation trips and awards can be lost. felt loss of his status. A big fish in a in a pond becomes a small fish in an ocean of many

Ron McNab: large portion of the consideration of value is predicting on hitting or predicated. I’m sorry on hitting future growth targets.

Ron McNab: It’s possible portion of the values tied to equity and organizational performance. It’s largely outside of your control.

Ron McNab: Founders can be surprised by the level of the acquirer. Input and oversight following close

Ron McNab: and new ownership may not have. May they may have a different vision than you have for your business

Ron McNab: and pushy to sell services that appeal to their strategy.

Ron McNab: The buyer may assume your staff. drop them into their organization, give them additional responsibilities, and ask them to support others.

Ron McNab: Agents were told. The buyer has long term plan to hold the assets aligned on a go forward path with the buyer and the buyer sold a year later and go go forward. Plans changed under new management. With Tcp.

Ron McNab: You can get access to the capital, and if you love this business you want to continue on your current course. You can, but with cash in hand, to invest or grow as you see fit.

Ron McNab: you get a preserve, full ownership and control. Continue and build your business according to your vision and plan.

Ron McNab: Leverage our resources to land, expand close more deals come back as needed to secure more dry

Ron McNab: dry powder and liquidity

Ron McNab: as your scale as you scale and find your opportunities. maintain all of your equity.

Ron McNab: grow revenues, generate more enterprise, value maps out your exit in the future when multiples may be higher.

Ron McNab: This is the time.

Ron McNab: Just look at these things. If any of this resonates with you, just reach out to us. Can you move to the next slide, please?

Ron McNab: Here’s how it works.

Ron McNab: Our program allows partners to convert any portion of their residual commission. Hilarious. Other Tsb’s or supplier direct contracts

Ron McNab: into up front, up front funds to meet your objectives.

Ron McNab: Partners can cash in a portion of the chips accumulated from years of hard work to accelerate their business or personal vision. Telarus assumes a pre-agreed portion of your monthly net commission, and this remains constant.

Ron McNab: You keep an evergreening monthly residual payment greater than the pre-agreed portion.

Ron McNab: As your total Commission’s revenue increase, you retain 100%. Of the upside from new sales.

Ron McNab: There’s a lot happening in the slide. You can dive into the details if you’d like.

Ron McNab: Ultimately, I use this as an illustrated example how to show you how the deal works in this example, partner generates a hundred $1,000 a month in commissions.

Ron McNab: They convert 40,000 of those monthly commissions into 1.6 million

Ron McNab: to enter into new vertical. They continued to sell into the base, growing their commission 5%. Month over month.

Ron McNab: As they continue to grow, they quickly rebuild their residual commission to a revenue neutral spot.

Ron McNab: In this example it takes about 8 months. It’s really a nice outcome. We see this a lot. Sometimes it takes less time or more time to get back to neutral.

Ron McNab: but we see it happening time and time again, as partners remain active, and so

Ron McNab: partners have even come back to us after regrowing their base, to monetize again. to keep funding new business opportunities.

Ron McNab: So they buy an asset, continue operating their agency diversify our growth.

Ron McNab: and that’s what they do.

Ron McNab: And they’ve reached the point

Ron McNab: to where they’ve grown. And we’ve been part of that. We have been a partner with them.

Ron McNab: That’s one of the best things about Tcp for me in this program. Can you go to slide 6, please.

Ron McNab: So as part of a deal. We can port over commissions from other Tsd’s. I mentioned that in the last slide or supplier direct contracts you have. We can bring that over, and you can get a cash upfront

Ron McNab: from those and benefit from moving your book to tellers from whomever. even if you don’t complete a Tcp. Deal, you could consider us as a home for your other books of business.

Ron McNab: We see a lot of partners or suppliers, partners with Telares, or with direct contracts, migrating books to Telarus. It’s happening every month.

Ron McNab: Everyone has different reasons, but the ones we see most frequently are consolidation. single source. For all your telecom business needs single source commissions reporting.

Ron McNab: simplifying business, leveraging our priority systems that ensure commissions, processing, payment, accuracy, variance, identification and discrepancy, reconciliation.

Ron McNab: Clara’s can play a big part in that protection protects our client relationship and long-term revenues with our best in class, supplier agreements. profits. maximize your potential with tools and teams built to close more business.

Ron McNab: close more sales and free up more of your time. Leverage our teams to help you manage your base.

Ron McNab: focus on selling meeting clients, maintain relationships and grow your revenues. Use our engineers, our advanced solution architects white, label them as your own.

Ron McNab: You need to do that, to close more deals and to close larger deals.

Ron McNab: That is the presentation for Tcp.

Ron McNab: typically, we have a lot of questions regarding this.

Ron McNab: So I haven’t look through the questions. But

Ron McNab: if can we open it up to ask questions for people to ask questions. Doug. Absolutely. It run terrific presentation. First of all. Every time we talk about this subject, whether it’s on the Tuesday call or in other capacities.

Doug Miller: I learned new things that we’re able to do with this program that I didn’t know before. So Piero and Rob. Ron it keeps evolving. It keeps changing. There are more applications for it, and I love the way you presented this in terms of used cases the partners might have. There’s such a wide range of what they might do with this. So

Doug Miller: I’ve partners if you’re listening to this, and you have questions or comments for either Ron or Piero. Please go ahead and put those in the chat. We’ve got a couple that we’ll address right now. Ron. First of all, we want to talk about where this is available is this domestic U.S.A. only did have a question from one of our partners as to whether or not it’s available in the Uk or elsewhere. It is in domestic

Ron McNab: United States alone. It is not international. Sorry, thanks, Lauren, for the question, but I kind of thought that was the answer. But I wanted to make sure. We asked.

Doug Miller: Here’s a great question, and there’s not a name on it. But they’re asking, are the revenue transfers to Telarus permanent, or does the revenue revert after a period of time?

Ron McNab: It is it is like when you’re talking about the revenue like when you’re rolling a bass. If it’s rolling a base, it stays, it’s permanent.

Piero Maniaci: I’m not sure I don’t see the questions. But so it is. It’s a long term exchange of so you know, I think that’s something a business owner needs to consider

Piero Maniaci: as part of these transactions. You know the give and the take. I would say right? Most partners that we talk to, who move forward with the Tcp transaction is, it’s because they have another investment opportunity.

Piero Maniaci: And that investment opportunity

Piero Maniaci: allows them either a better return or you know another another way to increase their

Piero Maniaci: personal wealth, and they think it’s worth making the exchange. So

Piero Maniaci: you know, for every agent it’s a little different. Every opportunity is a little different.

Piero Maniaci: But you know, for our program.

Piero Maniaci: If you think about, compare it to Vc or private equity.

Piero Maniaci: they’re gonna come in as a partner in your business. Most likely. Right? So you’re not. It’s the long term. Exchange is different, sure. But they’re gonna take an equity position. And that’s ownership in the company, and that’s usually

Piero Maniaci: a forever ownership. So it’s just you know it. This program is an alternative

Piero Maniaci: to agents

Piero Maniaci: who are who don’t want, you know, that

Piero Maniaci: that new partnership that would come with private investment.

Doug Miller: We’ve talked about a lot of ideas that partners might have in the back of their head about what they want to do with this. Let’s say they want to go ahead and chat with us. Jason’s asking question, how do we best engage with Tcp. To run an idea past you and see if it qualifies.

Piero Maniaci: So a couple of ways.

Piero Maniaci: We’ve got an inbox. Telarus

Piero Maniaci: capital@Telarus.com if you want to email that inbox, then I our team is monitoring, monitoring it.

Piero Maniaci: and it that that inquiry will be filtered down to Ron or Ruth. So, or alternatively, you can reach out to Ron. So Ron manages the western half of the country, and large largely the North Plains. So Ohio, Michigan.

Piero Maniaci: Wisconsin, Illinois, and then Ruth Morford

Piero Maniaci: leads our East

Piero Maniaci: agents. So she she manages our our agents that are identified are located in the East

Piero Maniaci: and the South plains of Texas, Louisiana, Alabama.

Piero Maniaci: That area is Ruth Morford. So

Piero Maniaci: the easiest way is to email capital@Telarus.com. But if you know we’re on roof and you’re in one of those regions, then you can reach out to them directly.

Doug Miller: Another question in the Q&A window that came in, and I can’t tell if this is the same person that asks the last one. It’s also anonymous, but it says for the base that you purchase. Is there a minimum term remaining on the contracts involved.

Doug Miller: or a minimum seasoning in the contract?

Piero Maniaci: So there’s a we do. There’s an in a lengthy underwriting process. I don’t say lengthy, but there’s an underwriting process. That we do as part of any of these transactions. And generally what we’re looking for are 3 or 4 things. It’s product diversity. It’s customer diversity.

Piero Maniaci: Contract term is a big part of the analysis.

Piero Maniaci: but it’s all 3 of those things, really.

Piero Maniaci: It’s not, you know. Contract term is a part of the analysis. But we’re looking at. You know, we we know a lot about this industry, and we know about the life cycle of those commissions, and we generally

Piero Maniaci: see that the commissions continue to run pay through beyond

Piero Maniaci: contract terms. So we understand that. And we appropriately underwrite. You know, with that knowledge.

Ron McNab: yeah. and that’s even. There’s another question that, Trevor. How do you value the base in the slide example? II said, they valued 50,000 month at a 1 million dollars.

Ron McNab: Actually, I think I value that at $25,000 a month for 1 million dollars. But it really is based on the product. Set the terms the contracts.

Ron McNab: You know, there’s different products that. So you’re gonna have higher multiples than others, just from the stickiness of the product. If it’s a forward leaning product. You look at the

Ron McNab: Ucas C Cass.

any of the cybersecurity. So

Ron McNab: product sets

Ron McNab: you’re gonna look into, maybe a higher multiple than a straight network asset right? If

Ron McNab: if somebody is just, you know, supplying network asks access without any applicable or layering applications on there, I think the multiples will be lower. But yeah, you

Ron McNab: when you say $50,000, the multiple was. we split half of it. We took. We bought $25,000 of that.

Ron McNab: and it ended by being a million dollars, and the customer that purchased ended up with the positive of $25,000. So if you had a $50,000. I’d buy $25,000 and uses those numbers again. I’d give you a million dollars for that 25,000 you would still be receiving $25,000 a month. Because II took half. You kept half

Doug Miller: hope. That answers your question. Your question, Trevor. Great answer. Thank you. The when we first started talking about this a number of years ago, one of my favorite explanations and, Piero, it may have come from you.

Doug Miller: Was the idea that look, it’s it’s very difficult for folks who are in this industry to explain, even to our own friends and family at times what it is that we do, and how we do things. And so when the subject of funding came up here, I think it was you that said, you know it. Sure you can go to a bank. Sure you can go to a financial institution. Good luck! Explaining to them what it is that we do here as well.

Doug Miller: If you would just let partners know why it’s so much easier to work with Tcp. On a funding agreement than let’s say another source that may or may not understand their type of business.

Piero Maniaci: Yeah, it’s the end of what you just said, Doug. It’s because we understand this model. We understand this business. We’ve been in it for 2025 years, and we understand, you know, the

Piero Maniaci: the, the, the nature of the residual, associated with all of these services and these products. So we have better line of sight. Than you know. A traditional bank

Piero Maniaci: will, because we’ve got

Piero Maniaci: many, many years of experience in the Channel to support. You know the our valuations.

Piero Maniaci: you know, Banks with Banks, you’re gonna have a lot of questions about. You know. They’re all turn.

Piero Maniaci: There are additional requirements of banks. Typically, when you take out a loan, sometimes less for personal guarantees, which we do not they’ll. There’s a lengthy, a lengthy underwriting process. They’re gonna look through

Piero Maniaci: a lot of your financial statements. They’re going to want a lot of background

Piero Maniaci: on your business. And you know all that takes time, and at the end of the day they may not understand it enough to feel comfortable. Loaning

Piero Maniaci: without understanding the collateral that’s backing up that that loan which is usually the Commission revenue.

Piero Maniaci: Yeah. So I think I think it. It really comes down to. We understand this business. We know it. We’ve been in it for a long time, so we’ve got a better comprehension of the value or the longevity

Piero Maniaci: of these residual streams.

Ron McNab: My family still thinks I’m in the mafia.

Doug Miller: I think it’s funny. It’s

Ron McNab: serious face.

Doug Miller: Ralph Lewis asks a great question, Ralph. I’m gonna give you 10 Tuesday call points for this question. This is really good. Some of our partners are familiar with some of the flexible Commission programs that Telarus offers, and he even references. The name anticipate here and is asking how what Tcp is doing is different from the flexible Commission distribution programs that we use in anticipate and similar programs

Piero Maniaci: anticipates traditional financing.

Piero Maniaci: So it is a, it’s a loan structure. Yeah, it’s an advanced with an interest component. So Tcp is different because there’s there’s no interest.

Piero Maniaci: it really boils down to that.

Ron McNab: It’s a fixed rate loan for a fixed period of time.

Doug Miller: So with Tcp, I mean, essentially, this is a way for

Doug Miller: partners to use their earnings, their sales, earnings that they’ve already generated

Doug Miller: really as capital working capital for current and future business needs. And what if any limitations does tellerus put on the use of that?

Piero Maniaci: None, no limitation on that up, Doug. But yeah, there’s there’s no limitation on your use

Piero Maniaci: of the funds. But you know, I think Ron kind of went through it. What we generally see is our agents, you know. Er entrepreneurs. There’s so many entrepreneurs in the Channel

Piero Maniaci: and

Piero Maniaci: leveraging their commission capital to enter into new opportunity has

Piero Maniaci: more often than not are almost always resulted in a positive result. For the agents who have entered and exited exited the program.

Piero Maniaci: So you know, I think, for everyone on this call, I would say, if there’s

Piero Maniaci: if you come across a new investment opportunity or a new business opportunity, or you have an entrepreneurial spirit. And you’re looking for ways to

Piero Maniaci: capture some seed money to enter into that, you know, investment opportunity. Tcp is a great way to do it.

Ron McNab: Yeah.

Doug Miller: And, as so many partners have said, one of the reasons they got into this business, in the first place, was because they wanted to be independent. They wanted to be autonomous. They wanted to run their show

Doug Miller: using Tcp allows them to maintain their autonomy, their independence and control their business.

Piero Maniaci: Yeah, it’s very different than what you’ll see from from your you know your your equity backed

Piero Maniaci: financing. Generally they’re gonna have a seat at the decision making table. They’ll have, you know, an ownership stake in the business.

Piero Maniaci: And we’ve seen a lot of agents who have transacted with equity and equity has different general plan for how the business should grow

Piero Maniaci: over the next, you know. 4, 5, 10 years. So our structure allows the owner the principles of the agency to continue to dictate

Piero Maniaci: what services, what products they want to want to sell, and how they want to. You know, move forward with their business

Doug Miller: 2 good questions that just came in, and I want to take them in reverse order. James Horniac asks, and we may want to clarify perception on this again, but he’s asking, Is there a minimum amount loan for this program? We may want to clarify again some of our definitions. But is there a minimum amount involved.

Piero Maniaci: Yeah, generally, we want

Piero Maniaci: we, we need to ha see about 2 k. And monthly commissions from an agent to consider a transaction

Ron McNab: referring to a loan. That’s where I was going with that correct

Ron McNab: it

just different product sets right when you talked about the anticipate which is really

Ron McNab: just a traditional loan an interest loan with fixed payments for 36 months. Whatever the loan period is.

Ron McNab: Tcp. On the acquisition side, where we purchase a piece of that

Ron McNab: commission is what we’re looking at being, you know. We want to see you have $2,000 in commission a month

Ron McNab: or something along those lines.

Doug Miller: So just to clarify, then a Tcp transaction is not a loan.

Ron McNab: it is not a loan.

Doug Miller: There you go.

Doug Miller: And key Song is asking a great question as well. What happens if the Mrr revenue goes below?

Doug Miller: He’s saying the set amount, or let’s say, what was used at the time of underwriting.

Ron McNab: Well, I would hope that it doesn’t cause we incentivize you to continue to grow your business over the first year. We have some multipliers built into that. But if it does, that’s our exposure right? We

Ron McNab: we take that risk

Ron McNab: in the fact that we we think you’re going to continue your business about

Piero Maniaci: the

Piero Maniaci: the expectations you know, of of this transaction, and it’s we we wanna work with agents that are looking to continue to grow in in in the telecom channel. And we underwrite our transactions

Piero Maniaci: in a way to incentivize. you know, additional growth. So you know, we didn’t show it in the slide. But there is a performance bonus

Piero Maniaci: payable to agents based on hitting certain growth metrics

Piero Maniaci: in their commission. So

Piero Maniaci: what that does is benefits both parties. Really it. you know, agents sell more. They to get their typical pass through rate on any any new sales, but then they also get a bonus

Piero Maniaci: that they can achieve over the 12 months following a transaction to get even more for each dollar of bookings they place with us. And it also expands their Co, the collateral position for Telarus. So that’s how it benefits us.

Piero Maniaci: And it, you know, it’s it’s it’s a

Piero Maniaci: really mutually beneficial

Piero Maniaci: structure in that regard.

Ron McNab: There’s another good question here.

Ron McNab: Do you buy an amount, or are you picking the specific commission streams? Vhs office? We are very specifically buy an amount. We are not picking the commission stream. We’re not buying accounts. We’re not buying product

Ron McNab: is strictly a dollar amount of value.

Doug Miller: A lot of partners would have had that question. Great question, yeah, does he really give me on that?

Doug Miller: So in in terms of what this can be used for and what it should be used for. We we talked early on. You know there are a lot of different goals that partners have. Maybe they need to expand their business. Maybe they want to open another office. We run into this one all the time. We need to hire people. We need more back office staff. We need help in our business. There are other partners that are at a different stage of their business. Maybe the way they want that beach house for their family.

Doug Miller: Maybe they’re looking for their retirement. Maybe they’re looking to change the structure of their business. All of these, I’m guessing are acceptable uses for the funding involved.

Doug Miller: and is there anything else that they should be considering

Doug Miller: in terms of evaluating what their goals are? How far ahead should they look when they’re planning what they need to do with the available funding.

Ron McNab: It’s funny because every use you just mentioned, every single one of them

Ron McNab: have been part of something that we have done, every one of them. It’s not that, you know.

Ron McNab: There’s people who have bought beach houses. There’s people that have.

Ron McNab: you know, paid off student loans. There’s people that have.

Ron McNab: you know, paid for employees. They wanna hire salespeople. They want to grow their operations. There’s people that have funded an Nrc. For a project. They had to buy the phones for the project. First. There, there’s people that have paid, you know, paid hide credit card debts off. There it is just.

Ron McNab: There are so many sources. There are so many opportunities to utilize this product

Ron McNab: that

Ron McNab: I can’t. You can’t really pinpoint one thing.

Ron McNab: What I do see most of in this is either

Ron McNab: they’re using it to improve their life some way.

Ron McNab: or they’re using it to improve their business. Some way those seem to be the 2 categories that they fall in. Not

Ron McNab: you know. We’re not having a whole lot of people come up.

Ron McNab: hey? I want to buy a razor

Ron McNab: or side by side there, 80 to 90% of them are investing in themselves or investing in their business. And it. I had this conversation with Piero yesterday

Ron McNab: about reward in a position that you have, and the reward in the position of this position for me is the ability to see

Ron McNab: the gains made by people that have capitalized on the business. They’ve grown

Ron McNab: in some instances only over 7 years, I mean 7 years. Seems like. But it’s not. It’s not that long.

Ron McNab: I’ve been in this industry for 25 years and have

Ron McNab: hundreds of friendships.

Ron McNab: relationships with people that have taken advantage of this

Ron McNab: opportunity, and I’ve seen their business grow. And then I’ve also seen the people that are looking to sunset their business, and that opportunity exists as well. That was the example of the $50,000 that we talked about earlier. But I think the 2, the 2, if you were looking verticals. It’s going to either improve their life

Ron McNab: in one way or improve their business in the other. And,

Ron McNab: There is a reward

Ron McNab: in that personally to see those things get accomplished by people that have worked so hard to get to this level where they are. And then we talked about where that neutral point is where let’s just say we bought a thousand dollars from you. We’re seeing it. What? 1418 months

Ron McNab: that $1,000 even that I have that I’m taking every month. They’ve grown past that. And not only that, we’ve incentivized them in the first year to grow past that with some multiples. So.

Ron McNab: if you want to look at this product. reach out to us because

Ron McNab: without knowing it without seeing it, it doesn’t. It’s not real, it’s not acquisition it.

Ron McNab: When I got. When I took this position it was very exciting for me again, like I said.

Ron McNab: I still kick myself while I’m not an agent, but it’s I love the fact that you can see people grow and you can assist them in growing. And it’s really, really simple.

Ron McNab: So

Piero Maniaci: I would just add and say, for all agents on this call, when you’re, you know, considering

Piero Maniaci: considering a sale or an exit, or recapitalizing

Piero Maniaci: and reinvesting in your agency. It’s just know your options. Know all of your options whether it’s a traditional loan.

Piero Maniaci: private equity. Vc. Or you know our program. It’s

Piero Maniaci: good to have knowledge, so that you can compare what is the best fit for me

Piero Maniaci: and the scope of what I want to do with my business for the next 5 or 10, 15 years.

Piero Maniaci: So you know, I think we’ve seen a lot of agents use our program, recapitalize into their agency, grow their agency, reinvest and generate more enterprise, value right because they cash out $10,000,

Piero Maniaci: create $20,000 of new revenue, and you know their plan is to sell or exit in 10 years. So then, you’ve got the force multiplier of that additional growth which was generated

Piero Maniaci: through our program. But you know you get that multiplier in 10 years which you know maybe multiples will be worth. Maybe the business will be worth more then than it is now, and you know it’s it’s it’s it’s it’s a smart investment strategy in a in a way to

Piero Maniaci: to ensure to maximize a future exit.

Piero Maniaci: But yeah, know your options, I think, would be the last last point I would make for everybody on this call.

Doug Miller: 2 things I want to do before we run out of time. I want to acknowledge arm’s question here he’s asking, is there any sort of provision to actually pay back

Doug Miller: at some point and stop the commission payments at a future date. This goes back to the loan question earlier.

Ron McNab: I didn’t answer that.

Piero Maniaci: You wanna answer Pierre. Go ahead.

Piero Maniaci: Yeah, you can’t you got it? You gotta run

Ron McNab: no, that would be a traditional loan we would keep that

Ron McNab: as long as you’re an agent with us.

Ron McNab: and we like. I said we would incentivize you to grow past what we’ve purchased from you. But no, it is not a payback. unless it was a traditional anticipate loan. It is something that would continue.

Ron McNab: and as long as you’re an agent with us.

Doug Miller: there you go. Thanks. Arm for the question, always good to clarify good question.

Doug Miller: I wanted to go back to base migrations for just a second, because we began talking about this in earnest. Maybe a year or 2 ago, and we started talking a lot more about it on the Tuesday calls and elsewhere. Describe, if you would quickly, the benefits for partners of migrating a base using. Tp, tcp.

Ron McNab: no one to take a pr, what do you want?

Piero Maniaci: Oh, no. I could take that one. So yeah, we see, I mean, we see a lot of agents who are rolling their book to Telarus. With a mi with a base migration. And you know every agents.

Piero Maniaci: Motives are different.

Piero Maniaci: But most of them are, you know. I would say they generally fall under these buckets is they want to consolidate. And it’s right here on the slide. Well, look at that

Piero Maniaci: consolidate consolidate their commissions. So they wanna streamline drive efficiencies and have all of their commissions flowing through one source rather than managing commissions from 5 or 6 different sources.

Piero Maniaci: They’re looking to simplify their business. That’s one way to do it?

Piero Maniaci: The other is they they to protect their business right to benefit from

Piero Maniaci: the being under the Telarus umbrella. So you know, we’ve seen a lot of agents towards. you know, we’ve seen a lot of activity actually, towards

Piero Maniaci: close of this year, where suppliers are asking some of their direct agents.

Piero Maniaci: You know they’re terminating them or asking them to roll their bases to a Tsd and giving them, you know, short timelines to do it

Piero Maniaci: so you can avoid

Piero Maniaci: you can avoid the potential of of being terminated or losing your commissions by bringing your base

Piero Maniaci: to Tellerus.

Ron McNab: That’s happening right now. In this industry. There are a couple of providers right now that are

Ron McNab: sending letters to people that are like, Hey, you have till specific date in a very short period of time to either move your base or we’re just not paying it any longer. So

Ron McNab: that’s one huge advantage, especially right now.

Doug Miller: Well, again, Telarus can help our partners with these and so many other questions. The whole Telarus capital program is custom financing. It’s custom financing for you and your business. At whatever stage your business happens to be.

Ron McNab: Telarus has thought this through, and they will incentivize you and make a an offer that will be just tremendous for you Pierre Ron. This is just tremendous, and I gotta throw in James. Comment here at the end. How do we get a Telarus shirt like Bron. Everybody wants to be like Ron. No, that’s not true. Aim higher people, a much higher.

Doug Miller: Yeah, I don’t last word to you, Ronald. Pierre.

Ron McNab: Yeah, I really appreciate you guys coming on. If you really have questions, even if you just want to see what it looks like, reach out to Ruth or myself. We’re easy to get a hold of.

Ron McNab: It doesn’t take long to do evaluation. To give you some answers.

Ron McNab: Now would be the time. and I appreciate the time that you guys had me on here listening to me

Ron McNab: for however long it was 20 min, and the shirt, James.

Ron McNab: I’ll see what I can do.

Ron McNab: But yeah. thanks for having me.

Doug Miller: Piero. Last word.

Piero Maniaci: Yeah, I think. You know it. It is. I think this is great forum. I wanna thank Doug and the team for having us on you know. There, there’s there’s so much opportunity in the channel, and you know more opportunity even outside the Channel. So

Piero Maniaci: you know, as as agents are considering what their next challenge is, or what their next venture

Piero Maniaci: could be.

Piero Maniaci: You know, I think Telarus, capital is a really unique product that allows agents toto get

Piero Maniaci: seed money or investment capital for them to take advantage of whatever

Piero Maniaci: you know. Beneficial opportunity, business opportunities in front of them. So

Piero Maniaci: yeah, I think. You know. Consider us consider us. If if you’re in that position.

Doug Miller: Sounds great guys. Thank you so much. Pierre Omanacci, Ron McNab, from the Telarus capital program, powerful discussion today. Hope it generated a few ideas for all of you, our Telarus partners, our thanks to each of you for attending and participating. Today. We’ll be back right here again next Tuesday with more. I’m Doug Miller. The voice of Telarus. Have a great selling week. Everybody

Ron McNab: thanks everyone right.