By
Mendy Green
June 9, 2021
•
20 min read
Business
The MSP Business Model Fallacy
In any business where you’re not billing Time and Materials, the amount of time you spend on a project directly correlates to how profitable you are. In an MSP, this applies even more. MSP Businesses were designed years ahead of their time, bringing into practice concepts such as recurring revenue, outsourcing, efficient resources, and more; before people even realized the value. It’s the reason that today the MSP Businesses are blowing up with everyone you meet starting their own. Unfortunately, there’s a complex side to the framework of an MSP that is very often overlooked, especially by those just starting out.
Let’s discuss how the MSP business model is built. MSPs pitch to their prospective clients that they can provide the same level (or often times better) IT Services to their organization than they themselves can find if they go with someone internally. They ask for less money, and offer a bigger team with greater experience. These same MSPs then have to turn around and hire the same people that would have been hired directly, and not just one, but two or three or more depending on the size of the MSP.
MSPs have to pay the same salary with a smaller budget. How can these numbers possibly work?
This is where efficient resources come in; an MSP needs to stack multiple clients reusing the same resources for each client so that together all the clients combined pay enough money for the MSP to pay the technicians salary and make a profit. The income also needs to cover all base expenses of the MSP which includes infrastructure such as an RMM, PSA, Email, Phones, over-night team for emergencies and so on.
With an internal IT resource, that resource would be solely focused on the business they were working for and getting paid a full salary of say $52k/year, now the same resource at an MSP is getting paid $52k/year and needs to stay on top of not one company IT needs, but actually 3 or 4 (or more depending on the contract size of each). This kind of expectation is unreasonable and when maintained results in high-stress work environments and eventual burn out for the technician. The saying “trial by fire” is very applicable to the technicians who work at an MSP. They are under constant barrage of tickets and stress, jumping from company to company each ticket wildly different from the next. This makes them unusually skilled and also rapidly exposes them to a wide range of experience they may not have received working for just one company. A good MSP technician of the lowest tier can easily go head to head in ability (if not knowledge) to a mid-tier internal IT resource.
Now keep in mind that when MSPs started we were a new phenomenon. There was no standard to follow, no existing business to copy, except for the existing internal IT department within a Company. We didn’t know what kind of pay structure was fair to offer a Tier 1 or Tier 2 technician because there was no “average pay” metric. The only thing we did know is that we are building a business with a stress on smaller dollar amounts per client, and more total clients. This means what we paid our technicians had to be less too, or that we keep the MSP as lean as possible with only the amount of technicians truly needed. Following the 80/20 rule we determined that 80% of the time with our clients running smoothly we would be fine and only 20% of the time when some kind “perfect storm” would occur we would need to motivate our technicians to put in more effort (or what was generally called “figure something out”).
What’s being described is not a sustainable long term plan. Simon Sinek likes to stress that business is an Infinite Game and that those who are not playing by those rules are doomed to failure eventually. The only way to stay in the game is by having resources, and the will to keep playing. We’ve already established that MSPs do not have the same pockets as a normal business, not without drastically imposing upon “will”, our employees, making them work in stressful environments and constantly being battered by the next broken issue.
The fix for this is easy, and its an iteration of what we already started. Efficient use of resources. Efficiency can help us spend less time per ticket, less time per client, and improve our technicians stress in the environment. There are two side to the efficient use of resources, one of which we already started (Sharing resources among companies) but the other is often overlooked “Work load management”. If we can make our work load efficient we can easily improve upon all the issues we just brought up. Here are some ideas that can be used to help facilitate the efficient workload.
Efficient resources is way more than just sharing resources. Making your workload efficient is just as important. Remember how profitable you are directly correlates to how efficient you can be
- Proactively addressing age of client equipment
- Proactively addressing ticket trends over time to help improve underlying issues
- End User technology training for better understanding of the tools they use
- Breaking Client’s business vertical into separate teams to allow for familiarity of Line of Business applications and setup
- Building an MSP supported technical standard as your “stack” to ensure familiarity with technical infrastructure
- Establishing formalized business processes for your MSP Teams so they know where to find information and how to proceed
- Building an Automation First environment allowing you to offload work from your team to your technology decreasing the amount of time spent on tickets.
Remember, in the MSP business time isn’t a loss of potential profit, its actual profit lost as your contracted rate is the same every month. Automation and bulk actions are extremely important as the less time you spend doing something the more your Per Hour amount goes up.
I'm passionate about IT, driven by a dual love for solving complex problems and a commitment to transforming the stereotype of technical support into a positive and enjoyable user experience. For over 13 years, I've been deeply involved in the MSPGeek community, lending my expertise to various Managed Service Providers (MSPs), while also serving as the CTO at IntelliComp Technologies.
My journey in the tech world is fueled by a passion for teaching others. I find great satisfaction in imparting problem-solving and critical thinking skills, and offering practical guidance during the troubleshooting process. It's this enthusiasm for mentorship and improvement that led me to my current venture.
Today, as the founder of Rising Tide, I'm focusing on the MSP industry, dedicating my time to coaching and assisting both individuals and businesses. At Rising Tide, we're not just about providing solutions; we're about nurturing growth, fostering innovation, and building a community where everyone can rise together. Whether it's through hands-on problem solving or strategic planning, my goal is to make the IT experience not just efficient, but also empowering and enjoyable
See some more of our most recent posts...
By the [run]Book: Episode 11
Episode 11 breaks down the most impactful upgrades across v2.202 and v2.204 — from smarter controls to new AI capabilities every MSP should know.
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In Episode 11 of By the [run]Book, Connor and Mendy wrap up v2.202 and move into v2.204, highlighting a mix of compliance tools, smarter ticketing controls, and powerful new AI foundations. They cover everything from audit log redaction and agent cost history tracking to Halo’s new MCP server, plus practical integration updates MSPs can use right away. It’s a fast, insight-packed walkthrough of the latest improvements shaping daily MSP workflows.
Watch Now: By the [run]Book: Episode 11
For easier tracking, check out haloreleases.remmy.dev to filter and search HaloPSA updates by ID, version, and keyword.
Added the setting 'Allow admins to redact Ticket audit logs' | v2.202 #817350 | 2:33
A new compliance-driven option allowing admins to redact specific audit log entries.
- Redactions are themselves logged
- Ideal for removing accidentally captured sensitive information
- Could be automated for retention policies
Added advanced settings per ticket type to disable the problem/resolution finder for agents and users | v2.202 #795561 | 4:29
More precise control of when Halo’s Resolution Finder appears.
- Disable for admin/maintenance workflows
- Keep enabled for user-facing support
- Improves workflow relevancy + reduces noise
Added the ability to use custom filter profiles on the Self Service Portal | v2.202 #768823 | 7:54
You can now surface custom ticket views directly to clients.
- Great for “All Tasks,” project dashboards, or simplified overviews
- Can be access-controlled so agents don’t see them
- Major enhancement for client-side transparency
Added Subscriptions and Software Licences to SQL Import Integration | v2.202 #737247 | 12:18
Allows software licensing data to be imported through SQL Integrator.
- Requires consistent identifiers
- Supports license type mapping + customer matching
- Bridges on-prem systems with Halo licensing
Added Agent cost history tracking | v2.202 #735577 | 15:30
A major improvement for profitability accuracy.
- Stores cost by time period
- Supports multi-currency
- Prevents old tickets from recalculating using new rates
- Essential for contract margin analysis
MSP Tip: Enable this before your next billing cycle.
Added Opensearch as a vector search database option for AI searching | v2.202 #650351 | 22:23
Halo now supports Opensearch for AI semantic search.
- Better AI matching & contextual understanding
- Powers more accurate AI triage & article suggestions
Entering v2.204
Halo Remote MCP Server for AI integrations now available | v2.204 #979569 | 24:37
Halo’s MCP server enables AI systems to take real action via the Halo API.
- Requires tight guardrails
- Future update adds bearer tokens for stable authentication
- Enables smarter Halobot and AI-driven automation
Improvements to the Dynamics Business Central integration | v2.204 #882737 | 30:36
Improvements to the Addigy integration | v2.204 #787185 | 30:48
A setting has been added… to disable asynchronous search | v2.204 #1005031 | 32:54
Allows fallback to synchronous sequential search.
- Use cautiously — unclear scenarios for enabling
Custom Tag Category mapping via ID or "~" for N-Central | v2.204 #1004123 | 34:15
Changes to the "Allow actions to be translated…" | v2.204 #1003051 | 35:22
Better translation toggles for multi-language communication.
New "Get Report Data" custom function for MCP & Virtual Agents | v2.204 #1003042 | 37:19
Allow Sales Opportunities to be invoiced | v2.204 #1002257 | 37:44
IT Glue Location Sync | v2.204 #1000835 | 40:55
Ticket Sources can be disabled | v2.204 #1000775 | 41:21
Edit Prepay time allocated to an action | v2.204 #1000603 | 41:38
Expense review process improvements | v2.204 #1000311 | 45:02
- Bulk actions
- Clearer UI
- Better handling for reimbursement flows
Quotes & Orders default sorting fix | v2.204 #999825 | 47:11
Allow items to be added to approved POs from Sales Orders | v2.204 #999609 | 50:45
Add Additional Agents as Attendees on Appointment creation | v2.204 #999225 | 51:40
Rich Text Custom Fields will now populate the $ variables on PDFs & Emails | v2.204 #998883 | 53:38
Chapter-by-Chapter Discussion Questions for The Go-Giver by Bob Burg: Chapter Seven - Rachel
In this chapter guide to “Rachel” from The Go-Giver, we explore what great coffee, storytelling, and human needs have in common. From “survive, save, serve” to Maslow and “meat computers,” this piece invites MSP leaders and service pros to rethink how they scale excellence without burning people...or the beans!
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About this Series
This discussion guide is part of Rising Tide’s Fall 2025 book club, where we’re reading The Go-Giver by Bob Burg and John David Mann.
If you’re just joining us, here are a few pages you’ll likely benefit from:
- Chapter One – The Go-Getter for an introduction on how to use these Discussion Questions
- Book Clubs, Conversations, and Curiosity for why we started a book club for a technical team here
Chapter Summary
In Chapter 7, "Rachel," we learn more about Rachel and about the characteristics that Pindar finds valuable.
Discussion Questions
Use these open-ended prompts to guide reflection and conversation. Remember, there are no right answers!
- How do you feel about the commentary about Pindar’s age? Do you know people who are younger than they seem? What characteristics contribute to that perception?
- Can you relate to Rachel? Is her story believable? What do you think the authors seek to elucidate about her? What about Pindar’s view of her?
- We’re yet again hearing Pindar described as a storyteller. What does that make you think the authors are trying to say about Pindar’s skill set?
- Survive, save, and serve. Where do you find yourself landing? Where would you like to invest more?
- What do you think is Rachel’s “secret” to good coffee? The author describes many aspects of her craft, surely it’s not just because she’s one-eighth Colombian!
Rising Tide Input for your Consideration
- Making coffee well is an interesting metaphor! There is so much care, precision, and repetition in making coffee, it’s as much a science as it can be considered an art.
- Consider Starbucks beans: to produce a consistent product at a scale, they roast their beans very hard, eliminating the unique characteristics of a specific variety of coffee bean in lieu of a product that will hold up to their regularly heavy-flavored and sugared drinks. (See: Why Starbucks Coffee Has That Burnt Taste) Is it possible to truly scale excellence with care? Is there a limit?
- As you're growing YOUR business, which parts of your business are you burning off as you clarify your mission and vision? If you're not burning with care and wisdom, you can burn off exactly what makes you and your team special, and you can even deter your ideal clients because of a lack of care, precision, and intention.
- Maslow’s Hierarchy of Needs suggests humans must have their basic needs met before they have the space to pursue “more advanced” needs.
- If that’s too academic, El gave a talk at MSPGeekCon about how we’re all basically meat computers with Hardware, Software, and Networking built into us. Does that perspective change how you can handle other humans and even take care of yourself? (Watch part 1 of “The Care and Feeding of Meat Computers” here: https://youtu.be/yRcs5XYI8LQ?si=J3Q_VGenSHaKutOR)
About Rising Tide and our Book Club
Rising Tide helps MSPs and service-focused teams build better systems: the kind that align people with purpose.
Every Friday at 9:30 AM ET, we host Rising Tide Fridays as an open conversation for MSP owners, consultants, and service professionals who want to grow both professionally, technically, and emotionally. In Fall/Winter 2025, we’re walking through The Go-Giver, chapter by chapter.
If that sounds like your kind of crowd, reach out to partners@risingtidegroup.net for the Teams link.
Bring your coffee and curiosity…no prep required.
Chapter-by-Chapter Discussion Questions for The Go-Giver by Bob Burg: Chapter One - The Go-Getter
At Rising Tide, we use book clubs not to read—but to listen, question, and practice curiosity. Join us as we unpack Chapter One of The Go-Giver by Bob Burg and John David Mann, using open-ended prompts to reflect on ambition, connection, and growth. Perfect for service-minded teams who want to slow down and think differently.
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About this Series
If you’ve already read Book Clubs, Conversations, and Curiosity, you know that at Rising Tide, we don’t host book clubs for the sake of reading. We use them as an excuse to talk, to listen, and to practice curiosity together.
The Go-Giver by Bob Burg and John David Mann is the first book that we've chosen to explore together in this way. Each week, we’re reading one short chapter together and using a few open-ended questions to spark real conversation: no lectures, no wrong answers, just reflection.
Below are our discussion prompts for Chapter One: “The Go-Getter.”
They’re written for teams like ours: busy, service-minded, sometimes too practical for their own good...who want to slow down long enough to notice what these stories have to teach.
How this guide is different from others you'll find online: We keep it chapter-focused. Every set of questions focuses only on the current chapter so there is no foreshadowing, no jumping ahead, no “we’ll get to that in Chapter 7.” The goal is to slow down and savor the smaller ideas that get lost when you rush to the big themes, and we're going to make sure that team members that are "behind" have enough data points to connect the dots and contribute even if they're not caught up to the current reading.
Use them however you like. Whether you’re reading along with us or just looking for a fresh team conversation starter, we hope these questions help you stretch a little, think differently, and see something new in yourself or your work.
Some Tips on how to use this Guide
- Keep it simple. No slides. No structured lessons. Read a question aloud, give a solid 10-second pause, sometimes you have to let the awkwardness of silence drive the conversation.
- Honor the one-chapter rule. No spoilers, no summaries! Stay inside the chapter or assigned reading. If someone raises a later theme, park it in a “Next Chapters” list and keep today focused. Similarly, don’t try to solve the book. Ask what this chapter made people notice or feel—nothing more.
- Actively include people who didn’t read and make space for quieter voices. Use prompts like, “From this idea alone, what stands out?” Curiosity doesn’t require homework. Explicitly ask: “Anyone who hasn’t shared want to weigh in?” Intentionally invite two voices before anyone speaks twice
- Time-box it. 15–30 minutes. One good discussion beats five rushed questions.
- Close with a single takeaway. Each person names one sentence, idea, or action they’re taking into the week. Log it. Revisit next time.
If you tweak or add questions, tell us at partners@risingtidegroup.net. We’ll keep improving this tool for other MSP teams.
Chapter One Discussion Questions and Observations
Chapter One Summary
In this chapter, we meet Joe, a go-getter who doesn't seem to be getting what he's going for. We are also introduced to his coworkers: Melanie and Gus, who help connect him with Pindar, or the Chairman, who agrees to tell Joe the huge trade secret that will surely be his key to success.
Chapter One Questions
- How would you describe or define a go-getter?
- Is it a good or bad thing? Why?
- Do you consider yourself a go-getter?
- Do you know people like Joe, Gus, or Melanie? What do you think of them as people or colleagues?
- Why do you think the authors chose the name Pindar for the Chairman?
- What do you think Pindar's conditions are going to be?
Chapter One Observations from the Rising Tide Team
- Being a Go-Getter isn’t a bad thing!
- It’s important to remember that the authors of this book are likely flattening the depth of characters into caricatures to more cleanly get the point of their story across. This is important to remember because rarely in life will the humans you interact with be the fulfillment of the assumptions you make about them.
- Pindar is the name of a Greek poet who wrote odes of Victory. https://en.wikipedia.org/wiki/Pindar. Does this mean we can expect victory for Joe?
Creatures of a day! What is anyone?
What is anyone not? A dream of a shadow
Is our mortal being. But when there comes to men
A gleam of splendour given of heaven,
Then rests on them a light of glory
And blessed are their days. (Pindar, Pythian 8)
Join the Conversation
Want to hang out in these conversations with the Rising Tide team? We meet Fridays at 9:30 AM ET to talk through important business, technological, and communal developments, and for the next 14ish weeks, The Go-Giver! If you’re an MSP owner, consultant, or service professional who wants to grow your team’s emotional intelligence alongside your technical skill, you’re welcome here.
Reach out to partners@risingtidegroup.net for the Rising Tide Fridays Teams link. Bring your coffee and curiosity: no prep required.