Do all clients have to be profitable clients? I say yes and no! Let me explain...
Of course we’re all in business to turn a profit (unless of course you’re running your MSP as a charity). But profit is just one factor of the right type of client. During my time running our MSP, I came to realize that profit was very important but it wasn’t the only measure to determine the right client. What about referrals? Or brand recognition? Or community impact?
But since we know client profit is a critical part of assessing our clients and understanding our business it’s important to measure how each of our clients are performing. One easy way to monitor client profitability is to use the BrightGauge Agreement Profitability Gauge which I have shown below.
This gauge was developed based on a manual report we used to run every month to determine the profitability of our customers. Finally we can view the information in more real time and not have to run the report at month end. This is the type of information that can be tremendously valuable to you as an MSP as you make business decisions on which are the right type of clients.
