Selling IT Managed Services: 3 Ways to Increase Recurring Revenue from Existing Customers


Recurring revenue from existing customers

Photo by Little Visuals

Note: This post is an excerpt from our new guide, 5 Steps to Growing Your MSP BusinessDownload your complete copy here.

To succeed and grow as a MSP, one of your underlying goals has to be increasing recurring revenue. New customer acquisition certainly accomplishes that, but what about creating new opportunities with the customers you already have? This goes beyond the customer retention strategies I discussed in the previous post. Retention helps you avoid losing revenue, so it’s obviously important. But to extract more recurring revenue from your current customer base you need to expand the scope of your services.

In this fourth blog in our series on growing your MSP business, I’m going to discuss ways you can identify opportunities to extend your services footprint within existing customers to solidify your relationship with them and increase revenue.

Increasing Recurring Revenue from Existing Customers: 3 Paths and 3 Dependencies

New recurring revenue opportunities aren’t confined to new customers. You should be looking for ways to generate more recurring revenue from existing customers, as well. There are three basic ways to accomplish this:

  1. Increase your services reach: Take a service you have in place today at a given customer and expand the scope of your management. Let’s say you have a customer with more than one location. Are you managing each one? If not, there’s an opportunity to expand.  Or maybe you’re currently backing up servers only for a particular cucstomer. What about adding critical client endpoints to the service?
  2. Augment an existing offering: Let’s say you’re offering simple endpoint AV as a security service. By introducing a second-tier service package that includes email, web, and DNS filtering you could bring in additional revenue.
  3. Add on a new service: Perhaps you’re simply focused on RMM services. Consider what additional services (backup, DR, security, archiving, etc.) might be easy for you to offer by leveraging MSP-centric software solutions designed to simplify delivery and management.

You don’t necessarily need to do all three of these things to grow effectively, but it’s important to realize all three are possible under the right conditions. It really depends on a few factors:

  • Staffing: Depending on the service, any one of the expansion options may require additional hands. Think about your ability to add on headcount and/or your current tech utilization rates to determine which of the three are viable options.
  • Expertise: This is particularly pertinent when adding new services. You need to determine your comfort level with being able to actually troubleshoot and deliver. You may need to consider adding on a tech with specific knowledge and skillsets.
  • Need: It’s all fine and good for you to take on any of the expansion options, but if no customers actually want what your offering, it’s moot. Before you make any decisions, have a few discussions with some of your best customers and solicit feedback on the proposed service changes.

This particular path to growth is one that you can take steps down today. It takes far less work than, say, finding new customers. So as you start strategically planning around opportunities for growing your business, this one should stand out as your path of least resistance.

Next week, in the final blog in this series, I’ll discuss the tackling the challenge of growing the business, itself – from scaling back office and billing operations to refining your processes and profitability.

Next steps: Download the complete guide

Missed a post in the series? Get your free copy of 5 Steps to Growing Your MSP Business now.

Inside, you’ll learn how to:

  • Overcome the most common growth hurdles
  • Create — and stick to — a practical growth plan
  • Craft a value proposition that hits home with new prospects
  • Acquire the right type of new customers
  • Upsell your best current customers, and keep them happy while you grow
  • Scale your business operations to make growth sustainable

Next Steps

Building an efficient and effective IT team requires a centralized solution that acts as your core service deliver tool. NinjaOne enables IT teams to monitor, manage, secure, and support all their devices, wherever they are, without the need for complex on-premises infrastructure.

Learn more about NinjaOne Endpoint Management, check out a live tour, or start your free trial of the NinjaOne platform.

Effizienter skalieren

You might also like

Ready to become an IT Ninja?

Learn how NinjaOne can help you simplify IT operations.

Watch Demo×

See NinjaOne in action!

By submitting this form, I accept NinjaOne's privacy policy.

NinjaOne Terms & Conditions

By clicking the “I Accept” button below, you indicate your acceptance of the following legal terms as well as our Terms of Use:

  • Ownership Rights: NinjaOne owns and will continue to own all right, title, and interest in and to the script (including the copyright). NinjaOne is giving you a limited license to use the script in accordance with these legal terms.
  • Use Limitation: You may only use the script for your legitimate personal or internal business purposes, and you may not share the script with another party.
  • Republication Prohibition: Under no circumstances are you permitted to re-publish the script in any script library belonging to or under the control of any other software provider.
  • Warranty Disclaimer: The script is provided “as is” and “as available”, without warranty of any kind. NinjaOne makes no promise or guarantee that the script will be free from defects or that it will meet your specific needs or expectations.
  • Assumption of Risk: Your use of the script is at your own risk. You acknowledge that there are certain inherent risks in using the script, and you understand and assume each of those risks.
  • Waiver and Release: You will not hold NinjaOne responsible for any adverse or unintended consequences resulting from your use of the script, and you waive any legal or equitable rights or remedies you may have against NinjaOne relating to your use of the script.
  • EULA: If you are a NinjaOne customer, your use of the script is subject to the End User License Agreement applicable to you (EULA).