Even though revenue growth is one of the hottest topics up for debate in the information technology and MSP circles, not everyone in the business knows how to scale the ladder.
To increase revenue for your MSP business or IT company, you need to focus on your offer, review your pricing strategy, and expand your market.
Is there room for growth in the MSP and IT sector? Yes, there is!
According to statistics, the MSP market is projected to expand at a compound annual growth rate of 11.7 percent.
On the other hand, the IT market is expected to grow at a stunning 104 percent by 2023.
In essence, this means the MSP and IT industries have massive potential for growth in the coming years.
And if you want a piece of the cake, this is the time to lay the foundation to expand your services and boost your earning potential.
Here’s how to do it.
Sell More To Your Existing Clients
One of the simplest ways to create a new revenue source is to, well, sell to your existing MSP customers.
We get it.
You might be hesitant to approach your existing clients because you “believe” they might not be interested in your other products.
But, you’ll be surprised at how many existing customers would buy from you if you put together the right offer and promote it well.
How do you sell more to your clients?
Cross-selling and upselling.
Cross-selling involves persuading your customers to purchase extra services, while upselling is all about selling a premium service that can benefit your client.
You see, selling to existing clients is less of a hassle than finding a new customer interested in your MSP services.
Put differently, your existing clients have tested and approved your services and, as a result, trust in you. So, they won’t have a problem choosing your service again for another product.
When sending pitches to sell additional services to clients, be sure to educate them about the new product’s importance.
It is essential to mention at this point that you can’t go selling to every existing customer in your portfolio. Focus on clients with an actual pain point who aren’t aware that you can help solve their problem.
How To Identify A Cross-Selling Opportunity
Cross-selling opportunities arise when your customer’s business grows.
For instance, if your client was a small business and transitions to a midsized enterprise, the customer may require an extra service, such as network management or cloud backup.
So, to identify cross-selling opportunities, you need to track your client’s business growth and their emerging requirements. You’ll then pitch additional services as their needs diversify.
Side Note: One of the key determinants of whether your existing client will agree to buy the extra services is your customer service. Make sure you’re offering excellent customer service to your customer to nurture brand loyalty and trust.
Remember, 72 percent of your customer expect you to know who they are, the products they’ve bought, and have insights into their previous engagements with your company.
Sell Popular Services
You’re likely to increase your MSP revenue if you focus on services that are in demand. Also, a company like Solosuit that deals with debt settlement and how to respond to lawsuits lawsuits will likely attract clients as their services are trying to solve the day-to-day issues that affect them. And that’s how you win by selling high quality services to your clients.
For example, cybersecurity will always remain a challenge among businesses and organizations. If tapped properly, this can be a source of extra income for your MSP business.
Think of it this way…
Most small and midsized businesses don’t have the infrastructure required to deal with cyber threats. With the right security solution, MSPs can cater to this gap to generate more revenue.
Compliance is another service that’s in high demand. Obeying compliance is mandatory. However, most businesses fail to abide by these requirements.
As an MPS looking to increase revenue and maximize profits, you can target customers who have a challenge adhering to SOX, GDPR, HIPAA, etc.
And the beauty of it is that customers will be willing to fork out hundreds of dollars for these services.
Other popular services MSPs can capitalize on include antivirus solutions, patch management, and vulnerability scanning, to mention a few.
Create The Right Offer
One of the most crucial steps toward generating more revenue for your IT or MSP business is to analyze your existing capacity and limitations. Your offering should portray your expertise and capabilities.
Therefore, you should do in-depth research regarding demand if you want to boost your business’s income by launching a new product.
On top of that, make sure you have the right talent to roll out the new service.
For example, let’s says you’re combining your RMM solution with patch management and cloud backup and sell them as one package.
In such a scenario, the cloud backup solution calls for your target customers to trust you with their critical data. When they do, you should show them that indeed you can keep their information safe, away from hackers.
The point we’re making here is that to increase your revenue as an MSP you need to display mastery in a specific field. Think about creating an offering that showcases you as a thought leader and authority in your sector.
Price Your MSP Services Correctly
How you price your services plays an integral role in determining if you can grow your revenue as an MSP.
To boost your income, you must adjust your prices … and this is the trickiest part. How will you increase your prices without driving your existing and potential customers away?
Opt for a sudden increase only when you’re sure doing so will bring in more revenue and boost profits without negatively impacting your sales.
You should analyze your competitor’s pricing model and how your services stack up against theirs from a customer’s standpoint. That way, you can decide how to best position your prices in the marketplace.
As much as your pricing strategy influences your business’s profitability and revenue, don’t try to outprice your competitors.
Remember, there will always be another service that offers a lower price than you. Instead, go for a value-based pricing strategy to enable you to command premium prices for your services.
Most MSPs and IT companies offer similar bundles. Even so, you can try to be different by packing bundles that appeal to a specific group of customers.
While it is easy for your target clients to compare your business against similar services, it is not easy to do the same if you’ve strategically bundled your MSP offering.
In addition, be sure to make your customers understand the value your bundle offers compared to similar services.
Leverage Emerging Technologies
Sure, emerging technology presents both opportunities and challenges for MSPs.
New technology can be a challenge to MSPs due to the investment required to keep up with the trends and train your team continuously.
On the flip side, it allows your MSP business to generate more revenue by catering to your target or existing clients’ emerging needs.
You can narrow down on mobile IT management, artificial intelligence (AI), and hyper-automation.
Pro Tip: Be sure to capitalize on new technologies as soon as they emerge. That way, you can rake in more profits before everyone else joins the bandwagon.
Get your business ready for the future by keeping track of technology trends and seizing opportunities when they occur.
And so you may know, you can generate more revenue as an MSP without blowing your budget.
MSP marketing can be expensive. If you’re starting out, you may not have the budget to embark on a rigorous marketing campaign.
However, that doesn’t mean you can grow your revenue.
Here’s how you can jumpstart your MSP revenue and profits without burning through your budget:
Provide excellent, LIVE customer support. Or offer chat support on your website.
Make it easy for target customers to sign up for your services. Create a smooth sales process that allows clients to buy from you without going through a tiring, bureaucratic process.
Leverage LinkedIn, phone calls, and e-mail t reach out to prospects.
Host a webinar with promotional or JV partners such as an industry leader or influencer.
Ask for referrals.
Re-prospected previously uncovered leads.
Publish relevant content on social media platforms that redirect readers to a long-form sales post on your company website.
We Can Help You Generate More Revenue As An MSP Or IT Company
The fact is…
Increasing your MSP revenue can be challenging, even if you know what to do.
Running a successful MSP company requires attention to every aspect of the business.
At Growth Generators, we help put more money in your pocket and boost revenue through our exclusive growth plan.
With over a decade of experience working closely with MSPs, we know what it takes to drive growth into your business.
Get in touch with us today to book a free consultation session with one of our MSP growth experts.
Also, be sure to subscribe to our monthly newsletter so you can get juicy industry news and growth strategies right into your inbox.