3 Tips for MSPs to Increase Q2 Revenue
It’s easy to get buried in the day-to-day busy work that surrounds an MSP.
The next thing you know, another month has slipped by and you realize that once again, you haven’t increased your revenue like you had hoped.
However, all hope is not lost, because in Q2 you’re going to make it happen.
Here are 3 tips that will help you increase your revenue in Q2.
1. Sell The Right Services (For The Right Price)
It’s probably no surprise that the most successful MSPs are selling their services for higher prices than their competitors.
In the past, many MSPs focused on supplying and supporting hardware and software.
The margins on hardware are minimal and as more services move to cloud, it’s only going to get worse.
The good news is that there is still money to be made by selling cloud services, like cloud monitoring, cloud migrations and cloud management.
What about the right price?
Whenever possible, try to convert your customers to a recurring revenue contract instead of doing constant one-off break/fix work.
This helps give your business stability.
Separate your service bundles from your competition by adding unique value.
If there are several companies selling cloud management, then create bundles that your competition doesn’t have.
For example, you could offer your customers a way to reduce their cloud costs by monitoring their instances and then resizing as needed.
2. Create Bundles That Minimize Your Risk
In many cases, increasing revenue involves minimizing risk.
When bundling your cloud and on-premise services, use well defined, risk averse recurring managed services like:
- Cloud and on-premise monitoring: Monitoring cloud and on-premise provides better visibility of your infrastructure, giving you instant notifications when there are problems. In some cases, this can lead to an automatic resolution before it impacts performance.
- Cost management for AWS, Azure, and on-premise: Cost management is a great way to add value for your customer. Some options include cleaning up orphaned snapshots, right-sizing instances, reducing data transfer costs and making the most of reserved instances.
- Identity and Security management: As organizations use more cloud services, their identity management becomes more complicated. These organizations must create security policies that utilize role-based access. This requires giving users the correct level of access and then taking it away when roles change, all while making sure compliance rules are being met.
3. Become A Master Of Automation
The real masters of automation are discrete, working in the background while improving operational efficiency and decreasing costs for their customer.
When you make things simpler and more efficient for your customer, you can easily justify the added value.
You can also create unique dashboards to give your customers a window into your automation.
Some other services you may want to automate and include are:
- Security patching from a centralized console
- Change management – automate software deployments, discovery and auditing that complies with their policies.
Bundling unique value added services at the right prices can significantly increase your revenue.
And with Q2 nearly upon us, time is of the essence for MSPs to deploy strategies that will impact their 2017 bottom lines.
Kirill Bensonoff is a seasoned entrepreneur and the founder of Unigma, a unified cloud management platform. Kirill blogs regularly about cloud, tech and growing your managed services business. He can be reached at email@example.com.