How much do managed service providers make?

How much do managed service providers make?

How much does a Managed Service Provider make? The national average salary for a Managed Service Provider is $42,366 in United States.

How does an MSP make money?

MSPs are basically like VARs (Value Added Resellers). They resell solutions provided by other technology providers to businesses by adding in their own service and layer of “value”. Small and Mid Sized businesses rarely have the capacity to hire and manage a lot of IT stuff in-house… which is why they hire MSPs.

What is a good profit margin for MSP?

(Typically, businesses only pay taxes on money that is profit.) That said, Service Leadership INDEX research indicates that the average profit margin for MSPs is 8 percent, while “best in class” MSPs have margins of 18 percent.

How many customers does an MSP have?

On average, MSPs report a client base of 122 clients. However, this number is skewed upward by the relatively few MSPs that serve more than 250 clients (16\%). Most MSPs (69\%) have fewer than 100 clients, up a bit from last year (59\%).

How much should I charge for IT support?

Tech support services average cost $70-80 per hour. The cost of tech support depends on how long the repair or support takes, because many pros charge per hour. New computer parts, cables or software will also affect your costs.

How much do MSP owners make?

Of those who were identified as owners leading managed services companies generating at least $5 million in revenue (3\% of the total respondents), ALL were earning at least $200,000 a year, with the average earning between $300,000 and $400,000 annually.

What profit margin should I aim for?

As a rule of thumb, 5\% is a low margin, 10\% is a healthy margin, and 20\% is a high margin. But a one-size-fits-all approach isn’t the best way to set goals for your business profitability. First, some companies are inherently high-margin or low-margin ventures. For instance, grocery stores and retailers are low-margin.