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4 steps to a successful MSP model

June 09, 2021

4 steps to a successful MSP model
A managed service model is like your favorite meal or cocktail. When done right, it’s fulfilling and rewarding—the highlight of your day. When done wrong, it can be a letdown.
Even though our natural inclination is to scream from the rooftops, “Yes! Become a managed service provider (MSP) and reap the recurring revenue!” … we must do so with a caveat:
Do it the right way.
Follow these steps to do MSP correctly
1) Define it correctly
When done right, MSP at its core is a recurring revenue model that solves issues for an end user. What that issue is depends on the model being sold. It could be an outsourced help desk, patching, software updates, remote remediation, onsite support—basically an all-you-can-eat managed service opportunity.
2) Treat SMBs and larger companies differently
Every solution provider talks about customization for each unique client, but do they really do it?
For smaller SMBs, you can transform their business by becoming their IT department. A major selling point is simply relieving them of having to hire a full IT team. You’re there for every need they signed up for, and it could be many.
For enterprises and other clients with larger IT teams, you want to focus on the service(s) in which they don’t have deep expertise. Is it UCC? Security? Cloud? To sweeten the pot, you're not only saving them on overhead, but your experts are available 24/7. If they hire their own in-house expert, he or she requires sleep, vacation, sick time, etc. (Not to mention skilled flight risks who leave the company.) If they sign on with you, that issue goes away entirely. You’re basically tying a single service to solve a need, resulting in a recurring revenue model.
3) Support what you promise (or risk liability)
Since managed service models are all the buzz (for good reason), we see companies jump into it that probably shouldn’t. For example, the aforementioned 24/7 support must truly be 24/7. And what about that special expertise that a client can’t fulfill themselves? You can’t fake it ‘til you make it.
The expertise and protection promised must be supported. A client’s IT division is the lifeblood of their company, so if you make costly mistakes or have gaps in your offering, you’re at risk. If you don’t deliver a quality stack, you could have a liability issue.
4) No box pushers
Your sales team must be trained to sell MSP. That means no “box pushers” selling only hardware or only software. MSP is a different animal with longer sales cycles and a mix of critical offerings. For your company brass, comp plans need to be aligned with MSP vs. a traditional “1 and done” model.
Ready to talk MSP or financing? Ingram Micro’s financial solutions team can help you win with your clients.


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