CCA Vendor News

The Best Kept MSP Secret, Podcast

May 10, 2022

Focusing on A Single High Margin Solution

“Choosing which service to offer really has a big impact, says Jason Byrne, SVP Marketing at NetSapiens. According to Byrne, the break-fix model was great, but its aging. The recurring income model is great, but the revenue per contract can be skimpy, and is prone to be falling, on an individual basis. With 40,000 MSPs chasing the post pandemic, post crises driven migration, market, Byrne is thinking that the time has come to find a service one can sell, that offers a better margin. Byrne tells us that people, facing small margins, try to counter the problem by selling more services to more clients. But this leaves the practical problem of less and less return on each win. Those lower and lower margins slowly eat away at the vibrancy of a business, impacting everything from having the revenue to attract top tier talent, reinvestment in keeping an MSP up to date, and even the firm’s attractiveness as an eventual Mergers and Acquisition partner or participant. Nobody wants to buy a low profit business. In this podcast, Byrne has some answers.

 

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