Attendees of Intelisys' annual Channel Connect event were in the thick of all the action this October in downtown San Francisco’s Union Square, a shopping, cultural and dining hub surrounding the iconic palm-tree lined plaza.

Later in the day, CRN corralled a group of convergence authorities, for a conversation that hit on themes ranging from channel conflict to how VARs can succeed in building out a network services business.

Jerry Hilecher was called upon for his expertise.

Don’t Fear The Residuals

Jerry Hilecher, president and owner of Gateway Telnet said adding a residual income stream was a conscious effort on his part after acquiring another VAR, which – although it had a huge price tag – brought in essentially no ongoing monthly income. Now, the residual income he’s earning has made a huge positive impact on his bottom line.

“Especially in tough times, my business has never been better. I have far greater profit margin, far greater overall sales this past year than in ten years. And why? Because by adding the telco aspect to our business, we’re more of true consultant,” Hilecher said. “The average VAR is not going to be as educated on all the resources as we are. One is having a 100 percent solution, the other is saying how many phones and lines do you need. There is a big difference.

By me understanding that market, I can bring a true return on investment to my customers. My primary focus used to be putting in brand new phone systems. Now I can bring that equipment to the customer at no cost, because I have the savings in so many areas.”