Three Reasons Why Modern MSPs Must Think and Act Like SaaS ISVs

Yet another blog that has rattling around in my head. The Modern MSP must think like a SaaS ISV? – but Modern MSPs are almost never SaaS ISVs!!!

Hear me out…..

How does/must a SaaS ISV think? Let me count the ways…

1. Gotta, gotta, gotta nail their value prop/messaging and target personas, and quickly! When you are selling a solution where you will get a few bucks every month and in an insanely confusing and competitive market, time is not on your side. The SaaS ISV must be able to very clearly articulate and educate the market on the clear value they deliver and very specifically to whom, the better the SaaS ISV does that the easier they have the ability to create a low COC (Cost of Customer Acquisition) sales model and deliver sticky CLTV (Customer Life Time Value) – that’s the only way they’ll be profitable.

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Same with a Modern MSP selling cloud bundles with their added value managed services – identical.

2. Gotta price for high value and high margin. The old saying “we’ll make it up in volume” could not be more false today – unless of course your built the shiniest new thing in the world, you can’t win the volume game. Your value prop must be able to support a reasonable MRR (Monthly Recurring Revenue) price and sufficient margins to support the business plan and your COC and COS (Costs of Service) delivery. It’s simple math putting assumptions into a recurring revenue financial model.

Same with a Modern MSP selling cloud bundles with their added value managed services – identical.

3. Gotta execute on marketing and sales 2.0. Here I go again – the marketing and sales world that got you where you are today simply won’t get you where you want to be tomorrow.

The SaaS ISV needs a strong combination of inbound and extremely targeted outbound marketing and sales. Why? Very simple - the buyer is in control and mass outbound to anyone with a pulse won’t work. On top of that the mass outbound model is way too costly – it’s not efficient enough and your MRR business won’t support that – the COC is way too high.

Same with a Modern MSP selling cloud bundles with their added value managed services – identical.