An MSP Owners' Guide to Selecting the Right Service Model
MSP Service Offerings 101
Navigating Your Managed Service Offering
Scaling your MSP business effectively starts with understanding the different service models. This process can feel daunting, especially if you’re just starting out or refining your services. But with the right insights, making informed choices becomes much easier.
In this guide, I detail three popular managed service offerings to help you determine the best fit for your business needs.
Time + Tools
Simple Entry into Managed Services
This foundational model includes a predetermined block of service hours and access to a remote management tool. It's an excellent choice for newcomers, offering clear implementation steps: choose a service rate, define the hours, and select your remote support tool.
Ideal for budding MSPs, the Time + Tools model helps you lay a solid foundation, build client relationships, and scale your operations as you gain experience.
Per User/Per Device
Streamlined and Scalable
Favored for its scalability, this model charges per user or device, which simplifies billing and service delivery. However, it's easy to fall into the trap of overcomplicating your service package with too many tools, which can hinder growth and efficiency.
Success with this model comes from keeping it simple: limit your tools, carefully calculate costs and margins, and maintain thorough documentation. This approach ensures efficiency and profitability.
Flat Rate
Predictability Wins Clients
Offering all-inclusive services for a flat monthly fee simplifies the billing process and significantly boosts client satisfaction. Whether you provide a few essential services or a comprehensive suite, the flat rate model ensures that clients appreciate the predictability and straightforward value.
When executed well, this model streamlines operations and solidifies client relationships by delivering clear, uncomplicated benefits. This predictability often leads to higher client retention and can set your MSP apart from competitors who use more complex pricing structures.
Choosing the Right Model
Your success as an MSP starts with selecting the right service model and implementing it effectively.
Whether you opt for Time + Tools, Per User/Per Device, or a Flat Rate model, each has its own unique advantages.
Pro tip: Keep it simple—choose a model that leverages your strengths and meets your clients' needs.
By aligning your service model with what you do best and focusing on your potential clients' requirements, you'll be on the path to creating an offer with true product-market fit.
And that’s what we're ultimately aiming for—an MSP offer that resonates and drives client demand.
Remember, starting with a solid foundation leads to sustainable growth.
Crafting your unique MSP offering is the first step toward building a service that clients seek out and trust.
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