The Broken MSP Model (Don’t Build This) ⚠️
7 Traps That Keep MSPs Small, Stressed, and Spinning
What if the reason your MSP isn’t growing isn’t your effort—but your model?
Most Managed Service Providers start with good intentions: help clients, solve IT problems, and build a reliable business.
But the way many MSPs are structured today—offering “everything IT”—creates more problems than it solves.
If you’re stuck in support mode, constantly reinventing the wheel, or struggling to scale, you’re not alone.
Many MSP owners unknowingly build their business around complexity.
They fall into the trap set by vendors pushing everything from security and compliance to vCIO and AI.
Worse, they attract the wrong kind of clients—and get stuck in a cycle of reactive support.
So today, let’s break down the seven most common flaws in the traditional MSP model—and show you exactly what to avoid if you want to build a business that grows without grinding you down.
1. Offering “Everything IT”
Trying to do everything for everyone guarantees you'll be great for no one.
When MSPs market themselves as “full service,” they end up saying nothing specific.
It attracts all types of clients with wildly different needs, forcing the business to stretch beyond its strengths.
Instead, narrow your offer to a defined service set that aligns with your ideal client profile.
For example, only offer services built around Microsoft 365 for professional services firms.
Focused offers attract better-fit clients and simplify everything.
2. Custom Solutions for Every Client
Custom every time means starting from scratch—every time.
Many MSPs think tailoring every engagement is how to win deals.
But unique designs, configurations, and processes kill repeatability.
Instead, create one standard solution that solves 80% of client needs, then allow minimal variation.
Think like a product manager, not a project manager.
Repeatable service design is what makes your business scalable.
3. Frankenstein Tech Stack
Building tech stacks client-by-client leads to operational chaos.
When your team supports 12 different backup solutions or 6 different firewalls, tickets take longer and errors increase.
Choose one preferred vendor per category—make it the default unless there’s a business-critical reason not to.
Document it and train your team on that stack.
Standardizing your stack improves efficiency, support, and profitability.
4. Pricing Based on Hours or Scope
Hourly and scoped pricing kill your margins and make growth unpredictable.
If every project or agreement is priced differently, it’s impossible to forecast revenue or understand gross margin.
Instead, shift to flat-rate pricing tied to your standardized offer.
You’ll improve sales, simplify billing, and know your margins before you sign the deal.
Predictable pricing creates predictable profit.
5. Reactive Support Model
If your business is built around “fixing stuff,” you’re stuck in the past.
Clients who only value you when something breaks are less loyal and harder to upsell.
Design your offer around proactive services, automation, and advisory—where you help clients avoid issues, not just solve them.
That’s how you shift from vendor to partner.
Reactive support limits your value and your revenue.
6. Proposal-Heavy Sales Process
Custom proposals waste time and tank close rates.
Spending hours tailoring each proposal and sitting through back-and-forths burns your energy and delays decisions.
Instead, use a productized offer with a simple pricing sheet and a 1-page summary.
The more friction you remove, the faster you close.
Speed is a sales advantage—build a sales process that reflects that.
7. Scaling by Headcount
If every new client means a new hire, your model is broken.
A scalable MSP grows revenue faster than it grows costs.
That only happens when your delivery is efficient, standardized, and not tied to billable hours.
Productize services, automate tasks, and empower clients with self-service tools wherever possible.
Your growth shouldn’t depend on hiring more people.
The real problem isn't effort—it's architecture.
Most MSPs don’t fail because they lack skill or hustle.
They fail because they build a model that can't scale, can't differentiate, and can't deliver consistent value.
When your business is rooted in chaos, growth becomes a burden instead of a reward.
You don’t need to work harder.
You need to build smarter.
What would your business look like if you rebuilt it with intention—designed to scale, not just survive?
Start by breaking the model before it breaks you.
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