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!