For MSPs and IT support companies, the profit matrix is brilliant.
What is it? Is where you list your clients down one side of a grid, and the Monthly Recurring Revenue (MRR) services at the top.
Then you put in a dot for each service that each client buys. So you end up with a load of empty spaces, showing you who's not buying what.
Yes this info is already in your PSA. But it's not as straight forward and clear as it is putting the info in a separate visual grid.
Doing this has a series of huge benefits and opportunities to grow MRR.
1) Your technicians can see at a glance who buys what. And when they are talking to someone with a problem that a specific service can solve, they can at least say "hey we can make this go away, shall I get someone to call you". We'd love technicians to actually sell. In the absence of that, let's get them to generate qualified upsell leads
2) Your strategic reviews with clients are easier and more profitable. The purpose of these reviews is to look forward at where their business is going. This gives you an indication of where to guide the conversation
3) To generate more MRR, just add more monthly services. And add more clients. You extend both sides of the grid.
The power of this profit matrix is immense. Look at this screenshot of something I posted in the MSP marketing Facebook group this week:
Some clients I've been working with for a number of years have grown their MRR from £2,000 a month, to £44,000 a month. All from selling more MRR services to existing clients. All driven by the profit matrix.
The profit matrix also shows you when you don't have enough MRR services to sell. This is a screenshot from a chat with a client in my client-only Facebook group.
Can you see the power of the profit matrix? It's the one thing I absolutely insist all of my clients do.
Let me tell you the one big mistake most MSPs make with the profit matrix.
They try to do it on a computer, perhaps in an Excel sheet. Even putting that Excel on a big screen in the office doesn't have the same power as taking it offline and making it physical.
A whiteboard is perfect for this. Here's one a client did a few weeks ago:
Taking it offline and making it physical adds some magic to the profit mastrix. It brings it to life, and becomes something the whole business can work together on.
Filling in the dots -> selling more MRR services -> making more money.
There are two other mistakes MSPs make when implementing the profit matrix. I reveal those at my free MSP marketing lunches.
In fact there's a real life case study on the profit matrix. I take you through, in detail, what to do and how to do it.
I have new events in Manchester, London, Leeds, Southampton, Chelmsford and Bristol.
Join me. It'll cost you 3 hours out of your office. And you only need one good idea - like this one - to make that 3 hours the most profitable investment of your week.