How much service revenue does your average small business client - ProProfs Discuss
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How much service revenue does your average small business client generate each month?



A. $0-$499 (or the local currency equivalent)
B. $500-$999 (or the local currency equivalent)
C. >$1,000 (or the local currency equivalent)
Asked by WARD, Last updated: Jul 06, 2020

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1 Answer

John Smith

John Smith

Answered Sep 09, 2016

>$1,000 (or the local currency equivalent)-small business technology providers can have a very hard time profitably acquiring new clients if (a) their target prospects are too small or (b) their target prospects dont believe in investing properly in it. as a result, when the lifetime value of clients is too low, your firm really cant afford to invest much time or money on marketing and lead generation. so make sure, when you define your firms target marketplace and ideal client profile, that your small business clients on your firms it service contract program are large enough and it-intensive enough to justify investing at least $1,000 per month (or the local currency equivalent) on outsourced it services. perhaps for your smallest clients, with just a handful or two of workstations, it might make sense to offer an it service contract level with a $500 per month minimum (or the local currency equivalent) on outsourced it services. however at any amount less than that, youll generally have a very hard time building a profitable and scalable business.
 

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