We also have partners that focus most of their attention on recurring revenue. They no longer sell firewalls, switches, or access points, and have created agreements for each. They also sell a lot of cloud services, instead of replacing servers. If revenue was the same between the two, the latter would undoubtedly receive a higher valuation. Client Ratio We’ve seen many MSPs where a single client makes up more than 20% of their total revenue. This is a dangerous scenario to be in. Not only does SOAR TO SUCCESS / Core Business Strategies Marketing Strategy As Henry Ford once said, “A man who stops advertising to save money is like a man who stops a clock to save time.” If you are not investing in effective marketing tactics, it will take significantly longer to meet your goals no matter how good your business is. Word of mouth works, but on its own time. Have any questions on how a cloud offering can boost your recurring revenue and maximize business valuations? I’m here to help. it impact the valuation, but it also puts your business at risk. With a good mix of clients, your valuation will go up, if you are charging appropriately. Client Upsells Our most successful partners have laid out all their clients intoaservicegrid. Thisgrid lays out every potential upsell and whether the client falls into each bucket. This service grid identifieswhich campaign they will run to their customers. For instance, if there are many clients that do not have your VoIP service, you can target and sell your customers on the move.
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