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Charlotte MSP Earns 500% Profit on Each Customer Migration

Partner

SolveiT.rocks

Industry

IT Consultant

Solution

Office 365

Resellers who think there’s no money to be made under Microsoft’s Cloud Solution Provider program (CSP) should talk to Eddie Clark. Not only did he boost his Monthly Recurring Revenue (MRR) to $2000 in just 60 days. Clark also chalks up a 500 percent profit on each customer migration to Office 365.

So, how does he do it? By working with a reliable partner.

Clark is the one-man show behind SolveiT.rocks, an IT Consulting firm based in Charlotte, North Carolina. He had worked with other providers, including Microsoft, but made the switch to SherWeb about 4 months ago.

Clark was a Microsoft Advisor for several years, but said he got fed up dealing with their technical support department.

MSPs Leery of the CSP

Clark, who serves about 22 clients in the healthcare, finance and manufacturing industries, said he was eager to try the CSP because he saw it as an opportunity to make more money. He said when the CSP was first introduced, a lot of Managed Service Providers (MSPs) were leery of the cloud because they thought it would affect their on-premises contracts.

Finding a good CSP partner takes a bit of time, too. After working with a few other CSP providers, Clark switched to SherWeb. He said he got tired of dealing with licensing, billing and support problems.

3-Level Support System

When Clark started SolveiT.rocks about a year ago, he wanted a practical way to solve his clients’ technical issues. He developed a 3-tiered support system and backed it up with his company slogan, "If we don’t solve it, you don’t pay!" Clark is proud to admit that he’s never had to honor this agreement. He said this is because he doesn’t stretch himself too thin. He offers his clients 3 types of service agreements with different response and resolution times. To make sure he can meet client demands, Clark employs 3 technicians and 2 sales people on a contractual basis and also works with a third-party help desk provider.

Clark said he wanted to promote Office 365 with his previous CSP providers, but felt it would just be too difficult.

Building a Solid MRR

Clark said he also does a lot of upselling and cross-selling which has helped him build up a solid MRR. When he first started with SherWeb, his revenue for Office 365 was only $25 a month. He was able to increase that to about $2000 a month and currently has another $2000 worth of proposals out in the field. He also has plans to start reselling SherWeb’s hosted infrastructure.

Clark said because SherWeb provides its partners with free migration services, racking up profits on customer migration has been pretty easy. By charging his clients only $25 per mailbox, Clark has managed to earn a 500% profit on each migration.

Clark said he was a bit hesitant to deal with SherWeb at first because their prices are a bit higher than other CSP providers he’s worked with. However, spending the extra money means he has more time to devote to his business.

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