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
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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 Four Discussion
Chapter Summary
In Chapter 4, The Condition, Joe if back in the office and we find him losing yet another customer. This, time, however, in an effort to test the First Law of Stratospheric Success (Your true worth is determined by how much more you give in value than you take in payment), he guides the customer to a competitor who may be able to better fit his needs.
Discussion Questions
Use these open-ended prompts to guide reflection and conversation. Remember, there are no right answers!
- How did Joe giving the customer to Joe’s competition make you feel?
- How was Joe’s action representative of giving more in value than he takes in payment?
- Can you describe a time a person gave you more in value than you paid? How did that make you feel?
- What are ways in your life that you can practice giving more in value than you take in payment?
Rising Tide Input for your Consideration
- Success is about perspective. You can be successful by your own goals, and not standard expectations of power, money, and attention.
- Our friend and MSP Owner at Network Integration Specialists in Virginia, Doug White, mentioned that he's enjoying making automations for his customers and not charging extra, and how those actions spark unsolicited client replies like, “This is awesome”. Truly the kind of experience the next MSP will have a hard time matching!
- Give without scoreboard math. Community help, answering questions, volunteering, parenting: these are “long-tail” investments that compound in character and network, not just invoices.
- We're curious! Maybe Gus has layers. There’s likely more going on with him than the mentor archetype...let's file that for later.
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 Three - The Law of Value
What makes a business truly valuable? Chapter 3 of The Go-Giver reframes worth: deliver more value than you take. Explore Ernesto’s playbook—care as a differentiator, authentic generosity, and spotting hidden value in plain sight—to build customer experiences that create trust, loyalty, and momentum.
Read post
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 Three Discussion
Chapter Summary
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Discussion Questions
Use these open-ended prompts to guide reflection and conversation. Remember, there are no right answers!
- Here, we find Pindar redefining phrases again. Ernesto says his hot dog cart was voted the City’s best hot dog stand. Pindar corrects: “Best outdoor dining experience in the city.” What does this difference say to you?
- Who do you think the Connector is going to be?
- Why did the words “clout and leverage” mean so much to Joe, specifically? What do you think the author is trying to say by having Joe repeat them over and over?
Rising Tide Input for your Consideration
- Part of giving is making people feel important. Ernesto’s real differentiator isn’t cuisine: it’s care. People remember how the place treated them more than what they ate.
- Give for the love of the game. Value isn’t a gimmick. When generosity is authentic (and bounded), quality compounds.
- The narrative keeps checking Joe’s assumptions (e.g., not realizing the chef is the owner). How do you feel about the point: perhaps value often hides in plain sight?
- Clout vs. leverage. Clout seeks recognition; leverage seeks outcomes. Joe wants both, but this chapter hints that trust is the real currency.
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.
By the [run]Book: Episode 9
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Read post
In By the [run]Book Episode 9, Connor and Robbie power through the rest of HaloPSA v2.2 — unpacking dozens of quality-of-life updates, automation improvements, and admin refinements that make daily operations smoother. From new calendar defaults and contract history tabs to long-requested rule enhancements and KB management upgrades, the pair keeps the banter light and the insights practical.
Perfect for MSPs, admins, and implementation teams who want to understand not just what’s new, but why it matters in real-world use.
Watch Now: By the [run]Book: Episode 9
For easier tracking, check out haloreleases.remmy.dev to filter and search HaloPSA updates by ID, version, and keyword.
Added the “Other Uses” tab to email templates | v2.2 #909265 | 2:53
This new Other Uses tab shows every place an email template is used — from rules to mailboxes to notifications.
- Easier to audit dependencies and clean up old templates
- Improves visibility when editing or deleting templates
Added a new Ticket General Setting that adds a system Action to log when qualification matching occurs on a ticket | v2.2 #898706 | 3:42
A new system action logs each time qualification matching runs on a ticket.
- Tracks when and how qualification criteria matched
- Useful for auditing automation behavior
Added approval option to choose CAB based on custom field | v2.2 #896229 | 4:22
CAB selection in approval processes can now reference a custom field.
- Supports text or single-select fields matching the CAB ID or name
- Enables dynamic approver routing based on ticket data
Logged in Users can now save a draft of a Ticket they are logging on the Self Service Portal | v2.2 #884056 | 5:50
Portal users can start a ticket and save progress as a draft.
- Ideal for long or multi-step ticket forms
- Prevents data loss if users need to pause
Quote Revised workflow trigger has been added | v2.2 #883519 | 6:51
A new trigger fires whenever a quote is revised.
- Enables automated notifications or state changes on revision
- Complements existing quote sent and approved triggers
Runbook start authorization type of “Halo API Bearer Token” added | v2.2 #881366 | 8:04
Runbooks can authenticate via Halo API Bearer Token.
- Executes the runbook as the agent calling it instead of a system account
- Adds flexibility for API-driven integrations
Added a new setting to always default the calendar selection to the currently logged in agent | v2.2 #859262 | 9:29
Simplifies calendar management for agents.
- Automatically opens their own calendar first
- Reduces manual selection errors
Added the ability to bulk update the Next Review Date field on Knowledge Base Articles | v2.2 #858884 | 11:12
Administrators can update review dates for multiple KBs at once.
- Great for annual content reviews
- Keeps knowledge bases fresh and compliant
Knowledge Base Article fields are now available as fields to be shown when Approving/Rejecting on an Approval Process | v2.2 #857514 | 11:12
Add KB fields to approval forms for better context when reviewing changes.
- Reviewers see article metadata before sign-off
Added a new column to the MessageContent table to identify Subject, Body, and Footer components of email templates | v2.2 #855304 | 11:58
Improves data visibility for developers working with email template records.
- Makes debugging and reporting easier
You can now add Sales Mailbox emails to CRM notes of Clients, Sites or Users | v2.2 #844239 | 13:45
Sales emails can be attached as CRM notes to keep records complete.
- Centralizes client communications
- Improves visibility for sales and account teams
Added a new method for receiving stock on purchase orders | v2.2 #843072 | 15:10
Introduces SKU validation during stock receipt.
- Reduces manual entry errors
- Found under Items & Stock Control → General Settings
Change History tabs have been added to Contracts and Supplier Contracts | v2.2 #836482 | 17:27
New tabs track every edit made to contracts.
- Adds an audit trail for agreements
- Increases accountability in contract management
Added a call management setting “Continue calls after logging or linking a call to a ticket” | v2.2 #833694 | 19:19
Calls no longer end automatically when linked or logged to a ticket.
- Lets agents keep the call open for follow-up
- Avoids losing context mid-conversation
Charge rate restrictions now apply, based off of the ticket type, when logging quick time | v2.2 #823209 | 22:44
Quick Time entries now respect ticket-type charge rate rules.
- Enforces billing consistency across types
- Useful for projects and service billing
You can now add Attachments to Canned Text | v2.2 #822463 | 24:14
Canned Text can include file attachments.
- Great for sending standard documents or forms
- Reduces manual uploads
Introduced a ticket type level override for the “Show the Quick close option on the new Ticket screen” global setting | v2.2 #816120 | 25:09
Control Quick Close visibility per ticket type.
- Enforce processes where closure must follow workflow
- Keep it available for simple incident types
Added access control to PDF Templates | v2.2 #814057 | 27:08
PDF Templates now respect access controls.
- Limit who can configure or edit templates
- Non-admins can be granted permissions as needed
💬 Off-topic: LOG SITE VISIT THE RENADA WAY | 28:35
The team demonstrates Renada’s custom “Log Site Visit” action as a cleaner alternative to Halo’s arrive/leave process.
- Uses custom fields for distance and travel hours
- Simplifies reporting and expense tracking
Main Contact has been added as an option for Site Column Profiles | v2.2 #812754 | 31:03
Show the Main Contact directly in Site views.
- Helps identify key contacts at a glance
The “Team” field under Ticket information is now a hyperlink | v2.2 #807462 | 32:01
The Team label is clickable and opens the team configuration.
- Quick navigation for admins and team leads
You can now receive stock on all purchase orders linked to a ticket at once | v2.2 #801168 | 32:30
A new system use allows receiving all POs from a ticket in one action.
- Saves time in procurement workflows
Added option to map to the source field when using event management | v2.2 #799024 | 34:28
Event management can map incoming data to the ticket Source field.
- Makes integration data more traceable
“Add Note to Parent” is now available as a separate checkbox option in action configuration | v2.2 #798972 | 36:43
The Add Note to Parent option can now be combined with other system uses.
- Allows dual behavior without duplicate actions
- Fixes previous limitations for linked tickets
Added the option to default custom SQL single selects to the first value | v2.2 #795490 | 37:44
Custom SQL single select fields can now auto-populate with their first value.
- Simplifies form design
- Reduces empty field errors
Added the “User” field to Actions Field List | v2.2 #795488 | 40:41
A new User field is available for actions.
- Lets agents reassign tickets without custom runbooks
- Fills a long-requested gap in action configuration
The total time logged against a Ticket can now be used on the Rules and Approval Rules | v2.2 #789731 | 41:59
Rules can evaluate total time logged to trigger pop-ups or actions.
- Example: warn technicians after X hours worked
- Adds granular control to service processes
Various improvements to the ServiceNow integration | v2.2 #788388 | 45:58
Backend optimizations enhance ServiceNow sync reliability and speed.
You can now use Dynamic Distribution Lists for Nurture Mail Campaigns | v2.2 #776030 | 46:17
Mail campaigns can leverage dynamic distribution lists.
- Automatically add new contacts to email sequences
- Great for onboarding and training emails
Client-side pagination added to large reports to improve rendering performance | v2.2 #772884 | 48:38
Large reports now load page-by-page to avoid browser timeouts.
- Default limit of 1,000 rows per page (can be adjusted)
- Keeps reports responsive and stable
Option to index tickets based on ticket rules and ticket filtering options when indexing existing records | v2.2 #771405 | 51:05
Adds criteria-based indexing controls for AI and search.
- Re-score tickets to match updated filters
Improved holiday allowance tracking | v2.2 #770136 | 51:42
Different holiday types can have their own allowances and carry-over rules.
- Better alignment with HR policies
- Overrides available per agent
The criteria option “Not equal to” has been added for Checkboxes used in Ticket Rules | v2.2 #674405 | 52:46
Rules can now check if a checkbox is not selected.
- Adds negation logic for workflow criteria
Dollar variables ($) can now be used on Recurring Invoices when generating Invoices for the Notes and Reference fields | v2.2 #578765 | 52:57
You can insert dynamic values into recurring invoice notes and references.
- Automates naming with customer or agreement details
- Speeds up recurring billing setup
Added the ability to add Charge Rate restrictions and overrides to Top Level | v2.2 #557573 | 55:08
Charge rate controls can now be applied at the top-level entity.
- Enforces billing consistency for suppliers or clients
Checkbox custom fields can now be used as triggers in lookup profiles | v2.2 #483346 | 55:48
Lookup profiles can now trigger based on checkbox fields.
- Expands conditional form logic capabilities
A setting has been added to Report configuration so that a Mailbox can be specified to be used for sending Scheduled Reports | v2.2 #459155 | 56:15
Choose which mailbox sends automated reports.
- Improves deliverability and branding control
- Configurable under Reporting → General Settings
Filters on dashboards are now multi-selects | v2.2 #432838 | 57:25
Dashboard filters support multiple selections at once.
- Compare multiple teams, agents, or customers
- Huge usability improvement for managers