The TimeSlips service network.

THE TIMESLIPS SERVICE NETWORK Like many smaller publishers, TimeSlips Corp. president Mitch Russo has become increasingly skeptical about the ability (and willingness) of dealers to support even moderately sophisticated software. "I don't have a lot of confidence these days in the traditional channel," says Russo, whose company develops time-and-billing software. "There's no way dealers can get involved with more than a few of the 2,000 products they're trying to sell."

Rather than just complain about the channel, though, Russo has come up with a solution--a proprietary service network of more than 200 self-employed consultants. Service and support is clearly a critical issue for the entire software industry, and we suspect the TimeSlips network offers an important, well-conceived model for the way software will be sold and supported in the next decade.

Russo's basic approach is simple: His company recruits, tests, and trains self-employed "certified consultants" to support customers in such tasks as installation, system design, and training. TimeSlips consultants aren't expected to devote all their time to his company's products, Russo says, but they are encouraged to make TimeSlip the primary focus of their efforts. To make the program more lucrative, the company provides its consultant network with "well over 3,000 leads a year"--and the result, at least for some participants, has been $60-$100,000 a year in new income. "What we have here is a network that won't go away even if a competitor comes out with a better product," Russo points out.

TimeSlips Corp. unveiled the current version of its consultant program in February, but Russo says the concept has been evolving for more than three years. "When we first started selling our software, customers used to ask if we knew of anyone in their area who could help them set it up. At first, we just passed along the names of satisfied users, who were genrally happy to help. But they didn't always have time to spend solving other people's problems. And when we referred outside consultants, our customers sometimes complained that we were recommending people who barely knew the product."

To improve the quality of its informal referral network, two years ago Russo's company devised a written test to screen would-be consultants. Suddenly, TimeSlips Corp. found itself testing 40-50 people a month, many of whom were simply assessing their own product knowledge or were unwilling to pursue leads aggressively. "We were building a network of people who didn't have any real interest in being in business," Russo realized.

So a year ago Russo decided to "become really serious about this thing." He hired a full-time program manager, developed a 2"-thick "Business Development Kit," and upped the ante for consultants who participate in the program. Now, to stay on the active rolls, a consultant has to shell out $250 for the Business Development Kit and another $120 a year in fees.

The program's cost apparently hasn't turned off many prospects. Besides the 150 consultants who started with the program in February, TimeSlips Corp. has been adding 50 or so more each month. "It's hard for us to absorb any more people than this right now," says Russo.

In working out the details of the TimeSlips consultant program, Russo says he discovered a few key principles:

* Don't try to turn consultants into salespeople. "This program does not focus at all on selling software," Russo insists. Rather than compete with resellers on product sales, TimeSlips consultants are encouraged to specialize in service offerings, often in collaboration with local dealers. This emphasis on service limits the consultant network's potential for generating direct revenue for his company, Russo concedes. But there's still a significant payoff. "We've definitely gained the respect of more of the big chains, and our retail sales have been growing steadily without any increase in advertising. I have to believe there's been a measurable impact on sales."

* don't go off half-cocked. Before launching the program, Russo's company invested more than $25,000 in creative costs for collateral materials--ads, brochures, posters, cards, and stationery--that are included in the TimeSlips Business Development Kit. In addition, says Russo, his own staff devoted "at least a man-year" in developing the rest of the Kit, which includes detailed scripts for sales seminars, sample presentations, and direct mail campaigns. "We wanted to create something to good to turn away," he says. "And we felt if we skimped in the production of the Kit, it would lesson its use. Every single thing the customer sees makes an impression."

* Set strict entry standards. To qualify for the TimeSlips program, a would-be consultant has to pass a four-page test on product features and istallation procedures. Candidates are charged a $50 fee to take the test; about three-quarters qualify for participation in the program. Russo's company also reserves the right to reject participants on the basis of such subjective factors as attitude and personality factors, though so far "that's only happened a couple of times."

* deliver real marketing support. "The great majority of the people we sign up are computer or software consultants, who are technically proficient but don't know how to promote their services properly," says Russo. Thus, the TimeSlips Business Development Kit provides practical advice about how to succeed as a consultant, including such topics as niche marketing, advertising, and telemarketing. In addition, TimeSlips Corp. sets up appearances for consultants at association meetings, and urges its dealers to invite consultants to co-sponsor seminars and to make store facilities available for training classes. "In a world where the job market is shrinking, we offer a real chance for someone to build a business in the service industry."