Multiple Potential Revenue Opportunities
Your MSP business can see a 400 percent return on investment (ROI) per client via proper monitoring protocols at a low level of operations. We’re not talking about a massive client; we’re talking about regular, attainable SMBs (Small and Medium-sized Businesses). There are different kinds of monitoring support that your business can provide them.
Consider applications monitoring as emphasized by Stackify.com. Stackify constantly provides resources for those maintaining applications of varying sizes. You can provide services like that to clients in addition to security monitoring. There are many different angles you can pursue in this regard, which are apt to be lucrative.
A Conservative Projection
Consider a hypothetical example demonstrating just how effective monitoring solutions can be for your MSP business. Here are the assumptions: you’re looking at trying to sell your monitoring services to 10 clients–existing or new. You manage to sell monitoring support at a rate of five devices per client. This is conceivable even for small businesses. It’s not inconceivable for an employee to have a smartphone, laptop, tablet, and desktop computer. A small business with 10 employees may have two with sensitive enough information to justify some monitoring support. So if you’re diligent enough, you can get 50 devices under a monitoring package among about 10 clients.
Now let’s say you charge $40 per device per month for your monitoring support. Just to cover all our bases, let’s assume that you’ve got an overhead of around 15 percent–this includes expenses involved in supporting the service you provide, and the time required to sell it. You’re looking at $24k a year. Chop off $3,600 (15 cents multiplied by $24k) for overhead, and you’re down to $20,400. Shave off another $1,400 for unexpected expenses and call it $19k a year. You spent $5k and pulled in $19k. That’s actually a little higher than a 400 percent ROI. If you can sell the same service to 300 devices across your clientele base, you’re looking at $114k/year from monitoring services alone. Again, this is doable even for a smaller MSP.
What has been described in the preceding section is the direct benefits of applying monitoring support solutions–and it bears repeating. Additional advantages you’ll enjoy include:
- More satisfied clientele
- Cost reductions internally from security Protection
- Increased competitiveness
- Better all-around security
- Multiple monitoring solutions
When you can stop problems before they start, you can keep customers from being stranded in the miasma of downtime. It’s estimated that downtime costs $700 billion annually in the US. That’s more than $2 per person throughout the country (there are more than 326 million citizens in the US currently). You can bet that your clients will experience downtime at some point. The statistics indicate that this is virtually certain, and there are plenty of numbers you can pull up to that effect while selling. The truth is, if your MSP can stop downtime from occurring on one essential device, it could easily pay for itself.
Five devices at $40/device/month cost a client $2.4k annually. Downtime of one hour can be worth tens of thousands of dollars for many companies. Save one CEO at the right time by monitoring his laptop, and you could pay for your MSP’s services, across a decade of service provision for that device. These kind of savings are apt to make clients more satisfied. They save money internally in terms of security–and so do you, as you’ll have the infrastructure to monitor your own operations and can save money that you would have spent with another company. This makes you and your clients more competitive, as they can maximize their resources. Ultimately, you’ve got increased all-around security as well. Finally, you’re able to monitor more than just systems security, if you’ve got enough tech personnel. Additionally, you can help clients maintain applications and the like if you’re interested in diversifying your suite of services.
Increasing Profit Margins
MSP business efforts including monitoring solutions properly applied can result in advantages directly, from internal security increases to more satisfied clients and increased profit margins. For those who haven’t considered monitoring solutions, this provision is worth consideration.