MSP Success recently polled more than 200 MSPs to find out who their most profitable managed services clients are. We focused on three key areas; company size, industry/niche and the services offered.
Company Size
The “sweet spot” for the majority of MSPs (63.4%) in terms of size was 11-50 employees. Only 8.5% said companies with fewer than 10 employees was the most profitable segment for them but 25.4% said companies with 51-100 employees was their most profitable sized client. Just 2.7% said working with clients with more than 100 employees was their “sweet spot.”
Industry/Niche
Coming in at #1 for “Most Profitable Industry” was manufacturing at 41.5%. Service industries comprised spots 2-5 with Legal (36.2%), Accounting (34.4%) and Financial Services (33%) tying Medical (33%). Other notable industries included ACE (Architecture, Construction and Engineering), Insurance, Nonprofit and Municipalities all getting more than 10% of MSPs saying those are their most profitable niches.
Service Offerings
Finally, as we get into Most Profitable Services overall Managed Security Services was highest with 59.8% followed by Cloud Backup (39.3%), Co-Managed IT (37.5%), VOIP (26.8%) and Compliance at 25% to round out the top five.
