MSP Success Magazine recently polled more than 200 MSPs to find out who were their most profitable managed services clients we in 2022. We focused on three key areas; company size, industry/niche and the services offered.
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.”
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.
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.
Download the full results of the survey here and let us know if you agree or disagree with the results.
We’d love to hear how 2022 treated you in business and what your expectations are for 2023. Please take 2 minutes and fill out our new survey here.