Running an MSP today means balancing growth with ever-tightening margins. Rising labor costs, client demands, and shifting technologies can make profitability feel like a moving target. What if there were a proven way to increase profit margins, strengthen decision-making, and build resilience without reinventing your business model? That’s exactly what peer groups do!
At Encore, we’ve seen it firsthand: MSPs that participate in structured peer groups consistently outperform those that go at it alone. The data backs it up…
The Data: Peer Groups and Profit Growth Go Hand in Hand
Peer groups aren’t just about networking, they’re about results. Across industries and within the MSP community, the numbers tell a clear story:
- MSPs in peer benchmarking programs average 2.5x the profit margins of their non-peer-group counterparts (Service Leadership).
- Peer group members grow revenue 2.2x faster than non-members, even during economic slowdowns.
- In the Service Leadership Index Q4 2024 report, MSP profitability stayed near historic highs, with top performers achieving EBITDA margins exceeding 20%, largely due to disciplined benchmarking and peer accountability.
- 71% of MSPs saw revenue growth in the past year, according to Syncro but the MSPs reporting the highest profit growth were those participating in structured peer or benchmarking groups.
So what’s behind those numbers? Accountability, visibility, and shared learning the exact cornerstones of Encore’s peer group model.
Why Peer Groups Boost Profitability
1. Benchmarking Creates Clarity
You can’t improve what you don’t measure.
Encore peer groups use confidential benchmarking to compare key metrics like gross margin, revenue per employee, churn, and EBITDA. Members see exactly where they stand and what top performers are doing differently. That visibility turns guesswork into strategy.
2. Accountability Drives Action
It’s easy to get lost in the day-to-day of client tickets and service delivery. In a peer group, you set goals and your peers make sure you follow through. That kind of structured accountability accelerates real change, whether it’s improving your pricing model or tightening operational efficiency.
3. Shared Best Practices Save Time (and Mistakes)
Why struggle alone when someone else has already solved your problem?
From optimizing tech stacks to refining sales processes, peer groups let MSPs borrow tested playbooks cutting the learning curve and improving margins faster.
4. Strategic Insight Keeps You Ahead
The MSP landscape shifts constantly; cybersecurity threats, AI integration, compliance requirements. Within a peer group, you’re not reacting, you’re anticipating. Exposure to how other MSPs are adapting helps you pivot sooner and more profitably.
5. Culture of Growth
When you meet regularly with business owners who are pushing for operational excellence, it changes how you lead. Peer groups build a culture where improvement isn’t optional…it’s expected.
What We See in Encore Peer Groups
Encore’s peer groups are built for action. We combine structured benchmarking with real conversations that get to the heart of MSP challenges pricing, margins, leadership, and scalability.
In every meeting, members walk away with:
- A clearer picture of their numbers compared to peers
- Two to three concrete action items to improve profitability
- Support from people who understand the MSP grind firsthand
And the results speak for themselves: members regularly report faster revenue growth, improved cash flow, and stronger bottom lines after just a few quarters of participation.
The Bottom Line
Peer groups aren’t another meeting on your calendar, they are a strategic asset. The data shows that MSPs who engage deeply in peer groups:
- Grow faster
- Operate more efficiently
- And deliver stronger profitability year after year
If your goal is to make your MSP more profitable, more scalable, and more resilient…stop trying to figure it out alone. Join a group of leaders who are doing the same work, facing the same challenges, and pushing each other to reach the next level.
Encore’s peer groups are designed to turn insight into action.
Let’s make profitability your next success story.
Ready to get started? Contact us to learn more about joining an Encore Peer Group.