Managed Services are Now 41% of TeamLogic IT Franchise Revenue

By targeting new clients while offering continual services to existing ones, TeamLogic IT capitalizes on every revenue-generating opportunity

“It’s never been a better time to be a TeamLogic IT franchise owner,” says Chuck Lennon, President of TeamLogic IT. He says that a lot. In fact, he’s accused of throwing that line into every conversation he has — a charge he’s more than willing to accept.

“Between growth in existing markets and our solid penetration of new markets, I have a lot of info at my fingertips to back that up,” Chuck says. “We are now in more than 30 states, and we have opportunities coming our way in 2016 that will continue to elevate our brand across the country.”

New and existing markets benefit from solid business practices, such as frequent live and online chats among TeamLogic IT franchise owners. They also benefit from the explosive growth of managed services contracts, a core service of every location.

TeamLogic IT franchise

Clients like managed services because it gives them 24/7 IT support for a set price. TeamLogic IT franchise owners then benefit from a steady, predictable revenue stream.

Steady, ‘no-surprises’ revenue stream

“Managed services underpin everything we do,” Chuck explains. “As a TeamLogic IT franchise brings in new business, it grows its revenue stream. But when they convert those clients to a managed services contract, they then can rely on that client for a predictable, consistent monthly payment. And the client knows that TeamLogic IT is available 24/7, with no surprise fees. It’s a solid model, and that’s why it’s succeeding.”

In 2013, the TeamLogic IT franchise network reported 31 percent of its revenue as managed services. In 2015, that figure vaulted to 41 percent, meaning that clients are finding the contracts valuable, and that every TeamLogic IT franchise is doing a better job of promoting them.

“It’s a number we definitely watch, and we are thrilled to see it climbing so quickly,” Chuck says.


Promoting the model’s value

Recently, TeamLogic IT rolled out tools such as mobility services and cloud services toolkits to help franchise owners and their teams promote these and other services.

“What we want to do is make sure that every TeamLogic IT franchise is ready and able to meet any client need, which is a challenge in the fast-moving IT world,” Chuck says. “With toolkits, we give them what they need to market, sell and support. That ties into our managed services model, because it all funnels together to create a recurring revenue model.”

What that does, in turn, is allow the TeamLogic IT franchise to effectively predict its needs in terms of staffing and other internal needs.

“Recurrent revenue is consistent; it’s not ‘churn and burn’ like so many others in the sector,” Chuck says. “Managed services allow every TeamLogic IT franchise to predict revenue and run internal operations well, which gives everyone on the team time to serve clients, as well as market to new clients. It’s a foundational element for us, and the growth shows us that it works.”

Learn more about a TeamLogic IT franchise

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