It works, until it doesn’t
Many MSPs still work to the same rhythm: logging time, billing hours and watching margins. It feels familiar and manageable. But your revenue only grows if you put in more hours, and hours are finite.
As soon as you want to grow, you hit that limit. More clients means more people, more planning and more pressure on the same margin. You keep running on effort instead of impact.
Sell the value, not the hours
Scalability calls for a different model. A model in which you no longer sell what you do, but the value you deliver. Fixed monthly fees per user or per device give you predictable revenue and your client predictable costs.
That does require clear choices:
- What is included in your packages, and what is not?
- How do you invoice when something falls outside the agreement?
- How do you move existing clients over without discussion?
- How do you set up contracts and invoicing in your PSA?
Not because you have to, but because it is smarter
Moving to recurring revenue is not a goal in itself. It is the basis for growing without the work growing at the same rate. We have made that switch with many MSPs and know where it goes wrong in practice.
Fancy a chat?
Want to know how much of your revenue is already recurring, and how to increase it? Come over for a coffee, call us or book a meeting straight away.