We spend a lot of time explaining and demonstrating how MSPs can upsell cloud phones and make money. We’ve created a trove of information MSPs can use to grasp how significant their monthly recurring revenue can be selling phones. But we also recognize a big obstacle for some MSPs: the capital expenditure required to get into the phone business. Here, we let you in on a way to jump that hurdle.

Having to finance phones and equipment for customers is out of the question for many smaller MSPs. It can be troublesome for many reasons, but it usually comes down to shelling out the initial cash – even if they are making a profit on the sale in the end. Financing even 100 phones your customer requires – either through a distributor or buying them yourself – is a hefty ask for some MSPs. Many smaller MSPs can’t support large phone purchases. And even less so are able to go the 60-90 days (the typical period from purchase to payment) out of the $10,000 required to buy 100 phones. These large deals create a cash crunch for smaller MSPs.

That’s why some vendors are allowing MSPs to rent phones or purchase phones via a monthly payment plan. MSPs can mark up the phones and pass along the monthly payment option to customers. Think of this arrangement as “Phones as a Service.”

Here’s how it works: You have a relationship with a phone provider and you “buy” a phone from that provider for $2 a month (the phone may cost $100 but you’re just paying toward that ownership over time.) You upsell it to your customer for $5 a month. This removes your need to figure out how to buy the equipment your customers require and to rent on scale from a provider. It enables you to disperse your capital elsewhere and still get recurring revenue from selling the devices – in many cases, more revenue than you’d get after purchasing such hardware to own it.

Many vendors are already doing this. What we do at D3UC is help you figure out the best course for your MSP business in the phone-selling landscape. Whether or not you can afford the cash crunch of the big phone deal, we’re here to steer you in the direction that’s best for your business. Our expertise in selling cloud phones is free, and we become your partner in driving more sales, boosting your bottom line and doing so without the large CapEx problems of the old days. Contact us today to learn more.