It’s common knowledge that maintaining revenue levels is what keeps a business afloat. Growing your business though can be a challenge, especially for managed service providers who must juggle client demand and overhead. How do you increase your profits while remaining competitive? How do you maximize billable time and add new clients without burning out your staff? We partner with a lot of managed service providers and have found a few tips that will help you to keep, and grow revenue for your MSP.
1. Establish a recurring revenue model
While services can be great, and a large chunk of revenue, there isn’t much that is more secure than recurring, contracted revenue. There are a couple easy ways to do this. Partnering with firms that provide services, such as colocation, cloud hosting, backups, and disaster recovery can complement your services, increasing your competitive advantage as well as to provide passive income for you. Each of these solutions can add significant revenue to your on-site, ad-hoc support services. These can provide recurring commissions or even be white-labeled to add additional value to your clients and margin for your company
2. Develop a partner channel
As mentioned previously, one of the quickest ways to build new revenue is to partner with organizations that already have services in place that can be adapted to your company, and clients’ needs. A couple key items to look for in a good partner are partners who:
- Have established channel models and commission/white label structures
- Provide flexibility, both in pricing models and molding to the way you work with your clients
- Don’t offer some of the services you offer to your clients, allowing a two-way relationship
- Shows expertise in their services
- Have an established, long-term client base
3. Mine current clients and relationships
More often than not, there is money left on the table with current clients. Perhaps they have unexplored consolidation needs, or haven’t yet finalized their disaster recovery planning. Don’t hesitate to reach out to that base with new services to establish an even stronger relationship with your clients. The more a client relies on your team, the higher value you deliver, and the stickier that revenue becomes.
When looking to establish quick growth in recurring revenue, it’s highly valuable to bring on a partner network that can support your needs and provide you with fast turnaround on the services you see as revenue-generating to both new and old clients. If you’re interested in exploring a partnership with Data Canopy, drop me a line, we might be able to help you to grow.