MARKETING FEATURE
Are You Choosing And Tolerating The Least
Desirable Clients For Your MSP ?
If you ’ re clinging to low-money , unprofitable , wrong-fit clients , you WILL pay the price .
BY ROBIN ROBINS
Some customers are giant , flaming a-holes . An MSP from Texarkana told me he refused to install a server for a law firm over a weekend while the divorce attorney who owned the firm was getting his “ couch fees ” from a female client . The attorney fired him and refused to pay for work that was already done . The MSP sued him and WON . But not every story like this has a happy ending .
MSPs suffer abuse from their clients in many ways , from rudeness and outrageous demands to nonpayment and even frivolous lawsuits . And if you ’ re actually attempting to GROW your MSP and add more clients , this is for sure : some of them will be flaming a-holes that need to be fired , or they ’ ll hang around and suck up resources , stress you out , and tank your profitability . No one is immune . If you ’ re not proactively filtering these people OUT , they ’ ll accumulate under your roof and multiply like cockroaches .
Your MSP ’ s Value And Profitability Rise And Fall On The Quality Of Your Clients
If you understand the Pareto Principle , you already know that roughly 80 % of your revenue and profits are coming from 20 % of your clients . We call these 20 % “ HVCs ,” or high-value clients . However , here ’ s something you have not likely thought about : it ’ s very likely that 80 % of your stress , problems , and costs are coming from the BOTTOM 20 % of your clients .
The question is , what are you doing about THEM ?
Most MSPs just tolerate their behavior . They permit these clients to dismiss their advice , pay late , complain about everything , and refuse to appropriately invest in IT and security . You might not like it and you may grumble about them under your breath , but the simple fact of the matter is this : you get what you tolerate .
ONLY keep those clients who meet your strict criteria for an HVC , firing and repelling EVERYONE else .
This is very simple to understand intellectually , but from an emotional standpoint , it ’ s extremely difficult for MSPs to implement . But if you actually pay attention to this advice and act on it , you will profit from it in multiple ways , including but certainly not limited to financial reward .
That ’ s because a high-value client is not just someone who pays you a lot of money — although that certainly IS one of their characteristics . They also represent a significant amount of profit , follow your advice , are easy to service ( because they follow your advice ), are genuinely appreciative of you and your staff , are very reasonable in their expectations , and pay on time . Many will also be deep wells for referrals . And ultimately , they should give you energy and inspiration , not suck the ever-living soul out of you .
Way too many MSPs make the mistake of clinging to low-money , unprofitable , wrong-fit clients and pay the price in multiple ways . There are several factors driving this , with the biggest one being these MSPs don ’ t have a sufficient marketing plan and sales team in place to create a steady flow of fresh , new clients and opportunities to REPLACE the problem children they have . They ’ re stagnant .
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