Lesson 21 of 2110 minarticle

The Recurring Revenue Math

Show partners exactly how the economics work.

An MSP with 20 client locations at $199/mo each generates $3,980/mo in recurring revenue. Their cost is $49-199/mo for the platform plus $5-15/mo per AP. At 30 APs total, their cost is ~$600/mo. That is $3,380/mo net — $40,560/year — from one product line. Show this math early.