Matterport Channel Partner: Will Matterport share revenue with me?13263

Originally Posted by @DanSmigrod
How Matterport Can Sell More Pro2 3D Cameras

The shorter version:

This marketing plan aligns all interests (that presently compete with each other):

1. Empowers thousands of Matterport Service Providers to sell Matterport Cameras (and first-person training, support and peak-load management)

2. Empowers the Matterport Sales Team to work with Matterport Service Providers: not compete with us

3. Test driving experiences are more likely to result in Camera sales or repeat business for Matterport Service Providers. Regardless of the result, the outcome is good – and fair – for all.


The full version:

Hi All,

When demand for Matterport Spaces 3D Tours exceed the capacity of Matterport Pros to create them - and Matterport Pros can charge top dollar for their services - Matterport will succeed faster.

To help achieve this success, Matterport marketing, sales and new business development needs a significant shift in the company’s marketing, sales and business vision, if it is going to dramatically:

1. increase camera sales to Pros and real estate agents
2. increase processing and hosting
3. increase ancillary revenue (floor plans, CoreVR, Google Street View, etc.)
4. reduce support tickets
5. increase customer satisfaction

My impression is that Matterport does not have a good customer fit business model because it has conflicting marketing and channel sales strategies.

If you are a professional photographer, this is obvious to you when you see Matterport in the business of:

1. selling Matterport Spaces to clients directly
2. engaging Pros (This is NOT a good thing!)
3. anything that has to do with controlling, setting or suggesting Pro pricing
4. doing everything it can do to drive Matterport Service Provider pricing lower

If you are a real estate agent/broker that wants to buy a Camera to scan your owner/brokerage – and start a scanning business too - it is obvious to you when you see Matterport in the business of driving prices down for scanning that it is drying up the potential for a profitable scanning side business.

My impression is that Matterport believes it will succeed faster with discounts on its Camera and by driving prices down.

To succeed faster, Matterport needs to do the exact opposite.

Here’s how I suggest Matterport shift:

1. Change the price of the Pro2 3D Camera to $5,445 – an increase of $1,450

2. Marketing Focus: “Engage a Matterport Pro for a $500 or more project and receive a promo code for $500 hosting/process credit when you buy a Matterport Camera.” (Pro keeps the $500 or more). [If you are planning to buy a Camera, this makes the scanning demo feel like it is free.)

3. If the person that received the $500 credit buys a Matterport Camera, the Pro gets a $500 credit to his/her processing/hosting account

4. If a Matterport salesperson (employee) facilitates the demo above, the sales person gets $250 above and beyond how they are presently compensated

5. All Matterport marketing is focused on a test drive: “Engage a Matterport Service Provider for a $500+ Matterport project and receive a $500 credit towards buying a Matterport Camera”

6. Announce the program September 1, 2017 that will be effective October 1, 2017. One month advance notice of the price increase will give anyone in the Matterport Pro 3D Camera sales pipeline an opportunity to buy the Matterport Camera for $1,450 less (today’s price) than after October 1, 2017.

7. Immediately, Matterport picks up a ton of new Camera sales because it has clearly communicated that the price of the Camera will increase in price: not decrease in price (that it has trained its prospects to expect).

8. Use ReferralCandy.com to implement the unique promo code for dealers (Matterport Service Providers)

9. Camera buyer submits the Matterport Pro’s Invoice (that includes the Pro’s dealer code; coupon code and the Matterport Service Provider code (if any)

Of the $1,450 price increase, $500 for the test drive; $500 for the Pro when it results in a Camera Sale; $250 for the Matterport Service Provider and $200 for administration of the program. (So, the roll-out does not cost Matterport $$$) These incentives only get paid out when Matterport sells a Camera.

Matterport should focus on leasing the Camera to real estate agents. It could still provide the $500 credit as the final payment in the lease. By leasing the Camera, real estate agents will be less price sensitive to the $1,450 - less $500 - price increase. The new pricing - after discount - is just $27 per month more over the course of a 36 month lease. Plus, Matterport could mitigate this price increase by offering two more models processed monthly.

This marketing plan aligns all interests (that presently compete with each other):

1. Empowers thousands of Matterport Service Providers to sell Matterport Cameras (and first-person training, support and peak-load management)

2. Empowers the Matterport Sales Team to work with Matterport Service Providers: not compete with us

3. Test driving experiences are more likely to result in Camera sales or repeat business for Matterport Service Providers. Regardless of the result, the outcome is good – and fair – for all.

4. Real Estate agents that buy a Matterport Camera after watching workflow - during and after - are likely to succeed faster and dramatically reduce Matterport support tickets. And, Real Estate Agents and Brokers that want to start a scanning business will be able to charge much more than when Matterport controls or sets or suggests pricing. Plus, Real Estate Agents/Brokers that decide not to buy a Matterport Camera, now have a relationship with a Pro that will result in more processing, hosting and ancillary revenue – and help generate ongoing business for the Matterport Service Provider.

5. Matterport Services Providers will be happy that Matterport includes us in their Camera sales process.

6. Matterport Service Providers will be happy that Matterport no longer offers scanning services directly to our customers. (Matterport should empower 3rd party companies to offer this service: not compete with companies that want to offer one order for multiple markets.)

Essentially, the Matterport Pro2 3D Camera sales funnel changes to empowering thousands of Matterport Pros selling the Camera with the incentive of $500 if the real estate agent buys a Camera – or the potential for a new scanning client.

Even if the real estate agent buys a Matterport Camera, it’s likely the Pro will be happy to get paid twice: once for the scanning project by the client and once by Matterport if the “watch my workflow” demo results in a Camera sale.

Plus, I could imagine agents and brokers engaging Matterport Pros for training, VIP Support, peak load management and even post production as Matterport Workshop offers more features.

Matterport Sales Team will embrace this new process because they will sell more Cameras with less effort. It’s way easier to help coordinate a demo than ask for the order. And, a thousand fewer questions for both Matterport Sales Team and Matterport Support Team – which get answered by the Pro doing the demo.

Plus, once the demo occurs (an actual project), the Matterport Sales Team can follow-up to close the Camera sale and get a $250 spiff beyond their existing compensation.

Matterport Support tickets will drop dramatically when agents/brokers get a demo from a Pro. The existing Support team will be able to answer questions in minutes rather than hours or days. Reduce Support tickets will slow-up hiring of Matterport Customer Support Reps.

I could imagine that as Matterport scales, it will be able to scale without adding as much headcount. This will be particularly important as Matterport scales in countries where English is not the first language.

Simply imagine Matterport trying to add Japanese Support (which also requires Customer Support with 24/5 or 24/7 coverage rather than the present 9 am to 5 pm PT Support Monday through Friday. Now imagine a Pro in Japan - that speaks Japanese - offering in person or phone support in the same time zone.

Lowering the cost of the Camera and driving down scanning prices has unintended consequences that - in the long term - are counter-productive to Matterport scaling its business (and Matterport Service Providers scaling their business).

Matterport MUST significantly shift the company’s marketing, sales and business vision to succeed faster – and for Matterport Service Providers and Real Estate Agents/Brokers (and other verticals) to succeed faster as well.

I can appreciate that my recommendation to increase the price of the Camera to $1,450 seems counter-intuitive – and could easily be dismissed by Matterport leadership – but it is exactly this major shift in thinking that is necessary.

For Matterport employees that have options in the Company; bonuses that are based on the Company’s performance; and, annual raises that are depended on the Company hitting its likely aggressive sales goals, I encourage you to debate this topic with your peers and challenge management to defend, “Why not do this?”

Keeping the status quo is not an option. It will result in less value in your Options; smaller bonuses; and a smaller annual raise.

I could also image that not implementing my recommendations will result in a delay of another round of VC funding (if that’s the plan); or a delay or reduce the value of a exit (sale of the Company or going public), if that is the plan.

With dozens and dozens of 360º Camera solutions – including serious contenders likely to begin shipping their Cameras in the 4Q17 or 1Q18 - empowering thousands of Matterport Pros to be the front line of satisfaction and selling Matterport Pro2 3D Cameras is the winning strategy: not dropping prices on the day the competitors’ Cameras begin taking orders or shipping.

I hope a We Get Around Network Forum Member will play the role of devil’s advocate and push back on why the above will not work. I welcome the opportunity to handle those objections.

If you were a Member of Matterport leadership, what would you do to help the Company – and its eco-system succeed faster?

Best,

Dan
MatterBaby-in-Chief
We Get Around Network, Founder

P.S. Yes. I am on vacation this week. Time to think about beach time ...

Originally Posted by DanSmigrod
Quote:

Originally Posted by @ploft
Hi Dan,

Just reached out to Matterport about reseller/affiliate program. As of now, none is offered. I have some clients who would want this product as a service and some who would want to purchase a camera and system as they have support to do it themselves.

I'm wondering how many service providers lose business to realtors and other industry prospects that decide they can do it themselves and purchase camera as they can do models less than hiring a service provider. You basically just did a sales demo for the Matterport's camera, sold them on the product and received no compensation or benefit. Not to mention you didn't get the sale for doing the model.

If you think a reseller/affiliate program is good for service providers maybe you can start discussion and or reach out to Matterport with your contacts to get this implemented. Like to hear you thoughts and others.

Yes! I agree with you.

It seems like Matterport could have 1,700 Matterport Pros in 71 countries (as of 9 August 2016) compensated for selling Cameras).

For example, instead of discounting the Camera by $600, Matterport could have offered Pros $500 credit to their hosting plan and the buyer $100 credit to their hosting plan.

While Matterport Service Providers would prefer to get recurring revenue service business, at least we would feel better that if the client wanted to buy a Camera instead, we would get compensated. Plus, by having the buyer receive a $100, we'd make sure that the purchase actually went through our dealer code, for example.

Instead of everyone saying, yes, Pros should be compensated, how else might Matterport structure a reseller/affiliate program that would be fair to Pros, Buyers and Matterport?

Best,

Dan