January 1, 2019
I would be remiss if I didn’t start off my letter for the New Year with a HUGE thank you to our MSP partners! With your continued support during 2018, D3UC has:
- Grown its family of MSPs by 300%
- Expanded across the U.S. with MSPs in 50% of the states
- Celebrated its 5th year in business providing white label phone & US services to MSPs
- Uncovered some valuable insights about the SMB market for phone & UC services
As business owners know, growing your business is not easy. It requires perseverance, creativity, many pivots, and an ability to partner with others for mutual benefit. Did you know that only 15% of businesses make it to their 5th birthday? We’ve defied the odds by listening to our MSPs, and taking a deep dive into the SMB market.
D3UC caters to MSPs that focus on the “S” segment of the SMB market, specifically businesses with less than 20 employees. The “S” in SMB is VERY BIG in both the number of businesses and employees, offering significant financial and competitive advantages for smaller MSPs. Since our MSPs are very successful selling to this segment, I wanted to share with you some interesting facts:
- A total of 5.2M businesses – 90% of all U.S. businesses – have less than 20 employees with most outsourcing IT services to MSPs.
- There are over 20 million employees working in “S”-sized businesses – giving MSPs a sizeable market to service.
- Businesses with less than 10 employees represent 88% of the businesses in the “S” category, and employ 60% of that workforce, as the following chart indicates:
Source: SBA Firm Size Data 2014
So, why do smaller MSPs choose D3UC? These are just a few things we’ve heard from the MSPs who joined us during 2018:
- Monthly profit per phone averages between $10-$20, with profitability increasing with smaller SMBs
- Unified communications features are now affordable for smaller SMBs and allow them to look like a much larger business
- No financial risk allows MSPs to learn how to sell and install their phone & UC service at their own pace
You also might be surprised by the makeup of our family of MSP partners. 25% have 7 or more employees and 75% have 6 or less employees, a third of which only have 1 or 2 employees. It is a source of pride that D3UC has been able to help the smallest of MSPs sell, install and support their own branded phone & UC services to their customers at prices they set. We’ve proven that D3UC can turn any MSP into a phone company, no matter how small and regardless of whether you’ve sold phone & UC services or not.
And remember, with D3UC, we are always your partner and never your competitor. Equally as important, there are no upfront payments to join the D3UC family—no minimum revenue requirements or termination penalties for you or your customers.
If you’re looking to grow your MSP in 2019, let’s find time to exchange ideas. You can call me at 973-333-3322 or schedule time on my calendar. I look forward to our first conversation.
Happy New Year and a Prosperous 2019 to all.