Every $1 of MRR is worth THOUSANDS to your MSP

Every $1 of MRR is worth THOUSANDS to your MSP

Paul GreenUncategorized

If this doesn't motivate you to sell extra services to your existing clients, nothing will.


We all know that MRR (monthly recurring revenue) is everything to MSPs. It's one of the best things about your business model, right?

But I bet you've never thought about it like this...

Imagine you want to keep building your MSP for 10 more years, then sell it.

Today you sell an additional service to one of your clients. It's $4 per user, per month. They have 10 users.

Here's how that all works out:

  • That's $40 a month of new recurring revenue. $480 a year
  • If they keep buying it over the next 10 years, that adds up to $4,800 of revenue... wow! That's some lifetime value
  • Let's say you buy this service for $2 per user per month. That's a 50% profit margin and $2,400 of gross profit. Whoop whoop!
  • And better still, when you sell your business, assuming you receive 1x ARR (ANNUAL recurring revenue), that simple upsell will put an extra $480 on your sale price

All that cash from a $4/month service.

And tell me again, why aren't you selling more MRR services to your clients every single day???????????

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