How Managed Services Can Flip the Switch on Your Success
Have you ever had a client happily pay you every month? If you’re providing them with clear value, they might do just that. In my previous life as an IT service provider, I had a client who willingly paid our company $24,000 a month.
You might be asking yourself, how could you possibly generate that much revenue from one client month after month? The answer is simple. They knew they could count on us to keep their network up and running. With the automation provided by LabTech, we only worked about ten hours a month for that $24,000. If you ask me, that’s a pretty fantastic hourly rate.
The value our client was paying for came from offering them managed services. So what does that mean? Offering managed services means you provide ongoing maintenance, monitoring and management of your clients’ IT networks, accompanied by a service level agreement (SLA) that clearly defines what clients can expect.
If you’re still running your IT services business under a break-fix model, here’s why it’s time for you to make the switch to managed services.
Earn Predictable Income, Recurring Revenue
A managed services model means no more uncertainty. Your clients pay you a fixed monthly rate to manage their entire IT infrastructure. You’ll know exactly how much revenue you’ll make each month, so you’ll have an easier time budgeting, planning and getting financing. Employees will feel the difference as well. Predictable revenue gives employees more confidence, which results in increased client confidence. It’s a win-win.
Benefit from Opportunistic Profitability
By shifting your focus to client stability, you’re actively engaged in making sure everything runs smoothly. If it weren’t for recurring revenue, you wouldn’t be able to have that intense focus. Instead, you’d still be waiting around for something to break. Recurring revenue provides the motivation to keep things running, so your clients continue to pay you a monthly fee.
With managed services, your responsibilities are clearly defined in your contract. You won’t be chasing fires, and your technicians won’t be run ragged with emergency calls. Your business will have the freedom to truly excel.
Provide Better Service and Support
Your technicians will be working with standardized systems instead of managing a different set of solutions and operating systems for every client. That standardization means better support. You’ll be able to establish clear system requirements and offer predictable service delivery.
Become a Trusted Partner
As a managed service provider, your clients look to you as a subject matter expert. They trust your advice, which makes it easier to sell additional products and services. Your established relationship means problems are solved with less tension and clients stay loyal.
Making the transition to managed services can be a lifeline to reliable revenue in a shifting market. Your clients are guaranteed a premium level of service aimed at identifying and fixing IT issues before they happen. According to MSPmentor, 61% of companies are looking to hire a managed service provider in the next two years so they can devote more resources to mission critical tasks.
Ready to get started? Join us next week for the first installment in our break-fix to managed services series. We’ll share the first steps in making the transition, and show you how you can capitalize on the rapid and continued growth of managed services.