There are six ways to make every client worth more. By implementing these, you’re not constantly on the hunt for new clients. You can easily generate more MRR from the customers you already have. Here are the six:
#1 Frequency Of Purchase (MRR)
So guys again if you have break-fix customers and you are not doing everything you can to get them on recurring revenue, shame on you. I’m going to be tough on you about this. So I’m not saying you don’t do “all you can eat”. I hate that term. You’re not a buffet line. You’re not Golden Corral. You’re not the Lady Luck. You’re not $2, everything you can eat where you’ve just got to make sure you don’t put a fork in something that’s still moving, right? That’s not what you are.
So if you’re smaller, there’s certain things you can do. Do a manage, plus time and materials and some backups, patching, basic cybersecurity protections and charge a recurring revenue and then everything above that you can charge hourly. Do that but get every break-fixed customer you have on some kind of recurring contract because I don’t care if you have one computer, you need maintenance, somebody needs to be patching it, updating it, looking at the backups. Am I wrong on that? So if you’re allowing a customer to buy from you via break-fix, you are doing them a disservice. If you ask my personal opinion, you cannot allow them under that. So every customer needs to be on some kind of recurring revenue.
#2 Transaction Size (First Class Option Of What You Sell)
You want to have different levels. You want to have a way that they can spend more. What else can we add? What else can we sell? How do we add more value? What else can we do with our customers? Transaction size, so the more they spend.
#3 Cross-Sell (How Many Ways Can They Give You Money?)
I just talked about this, you know, things like phone systems and copiers and printers and hosting websites and credit card processing and all the other things. Cross-sell them. How many ways can they give you money? So you want to think about that
A lot of you guys don’t have problems with this because a lot of you keep your customers three, four, five, six, seven, or ten years. Really long. But I can tell you that’s not normal in business. So most businesses lose about 40%-50% of their customers every year. That’s normal. Not for you guys. So that’s a blessing that you have. Part of that is because of our referrals.
Imagine every customer gives you one new customer a year, once a year, in 12 months. They’ve got 12 months to refer one new customer. You would double your business every year. If you’re not thinking about it, if you’re not focusing on it, if you don’t have a plan in place, guess what? You won’t get them. You get what you focus on, you get what you measure, and you get what you ask for. Simple. You know? So you’ve got to get referrals.
#6 Toll Position Income
Toll position income, that’s the sponsors in the hallway at our events, that’s what that is. So I get paid to deliver my content by the sponsors because, it’s a toll. I got a big community toll position income. But don’t think you can’t do this.
I have a friend of mine who is a chiropractor and he writes his newsletters which are very funny. So he’s got this printed newsletter and it’s just funny the way he writes stuff. He includes funny pictures, funny stories, and people love to be on his newsletter list. And so he actually had to start charging for it. Because people like to get his newsletter. It was done on Word, it was like this homespun creation, not fancy. Waterford Chiropractic you guys can look it up, if he’s still doing it. And so he charged them like $14 bucks. You could be on his newsletter if you weren’t an actual patient because people would want to be on his newsletter. And he got such a big subscription, he started selling ads in it.
I mean, that’s what MSP Success magazine is. I get paid ads to send a marketing piece to all of you. It’s toll position income. And so once you start getting a big client base, once you start getting a reputation, think about who else wants to talk to these people. Bankers, credit card companies, HR Companies. You sell outsourced IT. If they outsource IT, they probably outsource payroll, bookkeeping, accounting, and financial services. Those people want introductions to your clients. There’s no reason why you can’t profit from that.