So, you’re still debating whether to jump on the Monthly Recurring Revenue (MRR) bandwagon? Let’s put it this way: if your business isn’t built on MRR, you’re not an MSP; you’re just an IT firefighter waiting for the next emergency call. And that’s a losing game. Why MRR Matters More Than You Think Switching to MRR is not just about steady income—though, let’s be honest, that’s pretty great too. It’s about fundamentally changing how you manage your clients and your business. When you operate under an MRR model, you’re focused on prevention rather than cure. This means proactive monitoring, regular maintenance, and fewer surprises. Clients love it because it turns their IT costs from unpredictable spikes into predictable, manageable monthly fees. And you should love it because it gives you a stable revenue stream, allowing you to invest in your business, your team, and your services. Early Adoption Wins – Start Thinking Like a Real MSP For those who were early adopters of MRR, the transition was less about converting clients and more about building a business that was always structured around recurring revenue. If you haven’t made the shift yet, here’s a thought: instead of focusing on retrofitting your current clients, start selling managed services to new ones. Offer tiered packages (gold, silver, platinum) that emphasize proactive care and peace of mind. At the end of the day, managed services are not just a service model—they’re a business strategy. If you’re still stuck in the past, it’s time to upgrade your thinking. The future of your business depends on it.

Still hanging on to your old T&M model? Here’s the harsh truth: If you’re not building your business around recurring revenue, you’re missing out. T&M might feel familiar, but it’s like running on a treadmill—lots of effort with no real progress. The MSP Buyer’s Perspective Institutional and strategic buyers aren’t looking for T&M shops; they want businesses with predictable, repeatable revenue streams. Why? Because those models offer stability and growth potential. A business that generates 65% or more of its revenue from managed services is far more appealing to potential buyers, whether they’re private equity firms or other MSPs looking to expand. Wrap-Up: The Path Forward It’s time to rethink your business model. If you want to be seen as a valuable MSP, build that recurring revenue, aim for at least 65%, and streamline your operations. Evolve with the times, or risk getting left behind. The choice is yours.

Hot take: If you’re fantastic at running your business, chances are you’re not equally stellar at hiring. And that’s okay. There’s no glory in burning hours on a task you’re not great at, especially when the stakes are high—finding your next great hire. Why Good Recruiters Are Worth Every Penny Ever had a recruiter send you a candidate within 10 minutes of signing an agreement? Yeah, that’s a red flag. A good recruiter should spend time understanding your business, values and staff atmosphere, not just toss you the first warm body they find. Expect them to take a week or so— lie to me, at least pretend you put some effort in. Recruiters who specialize in MSPs know the difference between a good systems admin and someone who can handle the frenetic pace of a high-touch MSP environment. It’s not just about technical skills; it’s about finding someone who thrives in your specific setup. The Real Cost of Doing It Yourself Let’s face it: If you’re spending time in the weeds of hiring, you’re not growing your business. And that’s a problem. The fee you pay a recruiter is a drop in the bucket compared to what you gain in saved time, better hires, and fewer headaches. The math is simple—invest in what matters and keep your eyes on the prize: scaling your business.

If you’re still billing most of your clients on a Time and Materials (T&M) basis, let’s break it to you gently: “A dollar of T&M revenue is worth about $0.50 of value.”  That’s right—you’re working twice as hard for half the return. Compare that to managed services, where a dollar of revenue can be valued at 1.5 times. It’s clear which model is more valuable. The Hidden Costs of T&M Billing on a T&M basis means constant administrative headaches: invoicing nightmares, arguing with clients over hours billed, and unpredictable cash flow. On the other hand, MSPs with solid recurring revenue models click a button, send out invoices at the start of the month, and focus on growing their business. The difference is night and day. Blame Microsoft and Make the Move Here’s the good news: It’s easier than ever to have that conversion conversation with clients. Blame it on Microsoft and its new licensing models that require commitments. Tell clients it’s time to tie services together and move toward a more predictable, proactive relationship. The educated marketplace is ready, and the model is proven.

So, you’ve heard it a million times: “Recurring revenue is king.” But are you actually living by that rule? If your managed services revenue isn’t hitting at least 65% of your total income, you’re not playing the game right. Don’t Fudge the Numbers – Build the Business There’s a temptation to manipulate the numbers to make it look like you’re heavy on managed services by slashing product sales. Sure, you might bump up your percentages on paper, but any savvy buyer will see right through that trick. The truth is, you need to grow your managed services, not just make your product sales disappear. To get there, invest in growing your services—whether that means ramping up sales, marketing efforts, or cross-selling to existing clients. Only after you’ve crossed that 65% managed revenue threshold should you look to pump up your T&M or product sales. And for the love of all things profitable, don’t forget to properly define your offerings in your MSA and service agreements. Clarity avoids disputes and keeps your revenue flowing smoothly. Grow It the Right Way The bottom line is simple: Grow your recurring revenue streams naturally. Stack up your services, get new clients, and stop focusing on short-term gains. You want to be a real MSP, right? Then act like one and build a business that’s built to last.

If you think selling your T&M-heavy MSP is in your future, think again. Strategic and institutional buyers aren’t interested in taking on a business that operates like a vintage dial-up service—unpredictable, inefficient and full of surprises. Here’s what they’re actually looking for. Strategic vs. Institutional Buyers: Know the Difference Institutional buyers, like private equity firms, want stability. They’re interested in models that annuitize revenue, like financial services or healthcare, where clients stick around year after year. A well-run MSP with recurring revenue has a client retention rate of around 98%. That’s the kind of predictability they crave. Strategic buyers—other MSPs looking to expand—also want to see MRR. With high interest rates and fewer financing options, even these buyers are picky. They’re only jumping in if they see a solid path to growth without a ton of risk. And T&M? That’s the very definition of risk. Transition or Get Left Behind If you’re still doing T&M, your potential buyers are limited to those looking for undervalued shops they can transform. Why make it harder than it needs to be? Transition to a managed services model, focus on building recurring revenue, and watch as your business becomes a hot commodity. The market isn’t waiting for you to catch up. Make the move now, or get comfortable with being left behind.

Let’s talk hiring. You’re drowning in resumes from Indeed, LinkedIn and ZipRecruiter. The floodgates open, and suddenly you’ve got a hundred applicants—all of them proclaiming to be your next superstar. Sounds like a dream, right? More like a nightmare. Here’s the thing: scrolling through resumes, catching typos, and attempting to read between the lines of “results-driven professional” is not what you should be doing. Why a Recruiter Might Be Your Best Bet Hiring a recruiter might feel like a luxury—who wants to fork over 20% of a new hire’s salary just to find someone? But let’s flip that thinking. What’s the cost of your time? If you’re the mastermind behind your business’s growth, is spending hours knee-deep in resumes really the best use of your talents? Here’s the kicker: A good recruiter  will do more than dump a stack of resumes on your desk. They’ll take the time to understand your company culture and know exactly what kind of candidate fits best. They’ll sift through the masses, run tests, and only bring you the cream of the crop. And if the new hire doesn’t work out? A solid recruiter has a guarantee window—90 to 180 days. If things go south, they’ll replace the candidate. You don't get that kind of safety net doing it solo. The “Hire Slow, Fire Fast” Philosophy When you do the hiring yourself, you’re emotionally invested. You’ve put in the hours, and now you’re clinging to the hope that this candidate will work out—even when all signs point to “Nope.” With a recruiter, you’ve got a little emotional distance. If they don’t fit, cut them loose, and let the recruiter earn that fee by finding a new option. So, next time you’re stuck on another Saturday scrolling through resumes, ask yourself: Could my time be better spent somewhere else? Probably.

Let’s be honest—most sales processes look more like a game of darts played blindfolded than a strategic plan to close deals. You can keep throwing random pitches at prospects and hope something sticks, or you can adopt a sales process that actually makes sense. Here’s the deal: we’ve taken the best bits from the Sandler Sales System, Action Selling, and Daniel Pink’s ABCs of Selling (Attunement, Buoyancy, Clarity) to create a sales process that doesn’t just sound good in theory—it actually works.   1. Pre-Call Planning: Because Guessing Isn’t a Strategy Starting your sales call with, “So, what’s your biggest problem?” isn’t exactly groundbreaking. Instead, do your homework. Channel your inner detective and dig into the prospect’s business, challenges, and decision-making process. Get into their head—understand their pain before you pick up the phone. Set a clear goal for the call. Are you going for a demo, a proposal request, or just trying to secure the next meeting? Know what you’re after. And here’s a pro tip from Sandler: identify potential challenges they might throw your way. Trust me, it’s easier to handle objections when you see them coming.   2. Building Rapport: No One Wants to Talk to a Robot Let’s not pretend this is rocket science. Building rapport is all about being a human being. Match the prospect’s pace, show some empathy, and actually listen to what they’re saying. Set clear expectations at the start with an “Up-Front Contract.” Tell them what you hope to accomplish on the call and ask them what they want. It’s not just polite—it’s good business.   3. Uncovering Pain Points: Go Beyond the Surface Newsflash: Prospects rarely spill their deepest frustrations in the first five minutes. Use the Sandler Pain Funnel to dig deeper. Ask open-ended questions and really get into the emotional reasons behind their needs. Don’t just scratch the surface; get to the heart of why they’re talking to you in the first place. And here’s the kicker—sometimes, they don’t even know how bad their problem is until you spell it out for them.   4. Qualifying the Prospect: Don’t Waste Time on Tire Kickers Not every lead is worth your time, so don’t be afraid to qualify prospects early. Ask the tough questions about budget, decision-making timelines, and who’s actually calling the shots. And if they’re not ready to move forward, don’t panic. Keep your cool and stay buoyant (thanks, Daniel Pink) because the door isn’t necessarily closed forever—it just needs another knock later.   5. Presenting the Solution: Solve, Don’t Sell Here’s where most salespeople go off the rails—they dive into their pitch like they’re reading a brochure. Stop that. Present your solution as the antidote to the pain you’ve uncovered. Tailor your pitch specifically to what the prospect cares about. Link your product or service directly to their needs, and keep it clear, concise, and devoid of jargon. If your value proposition sounds like a riddle, you’ve already lost them.   6. Handling Objections: Don’t Get Defensive—Get Curious Objections aren’t personal, so don’t get defensive. Use Sandler’s “Reversing” technique: instead of immediately countering, ask clarifying questions. Find out what’s really bothering them before you dive into your rebuttal. Think of objections as just another opportunity to explain your value.   7. Closing the Sale: Time to Seal the Deal, Without the Drama The close isn’t some magical moment where the skies part and angels sing. It’s just the next logical step. Guide the prospect towards the commitment you want, whether it’s a demo, a proposal, or the final sale. Be clear, be direct, but don’t be pushy. Use Sandler’s “Close” step to confirm that you’ve addressed all their concerns. The goal is to make saying “yes” as easy as possible.   8. Post-Sale Follow-Up: Don’t Disappear Once the Check Clears Too many salespeople treat the close as the finish line, but the real winners know it’s just the beginning. Follow up with positivity, ensure the client is satisfied, and keep the relationship warm. Action Selling tells you to check in on results, show continued value, and look for opportunities to deepen the relationship. Remember, happy clients lead to referrals and more sales—don’t neglect them once they’re on board.

If you’re still running a Time and Materials (T&M) shop, it’s time to wake up and smell the depreciation. In today’s MSP world, relying on T&M billing is like operating a lemonade stand in a Starbucks era—quaint, but ultimately not where the money’s at. So, if you’re hanging onto the old way of doing things, here’s why your business might be worth half as much as it could be. The Cold, Hard Numbers on T&M vs. Managed Services As we’ve explained before, a dollar of T&M revenue is typically valued at about $0.50. That means if you’ve got $1 million in T&M revenue, it’s worth roughly $500,000 to a buyer. Ouch. Meanwhile, managed services revenue is valued at about 1.5 times. So, $1 million in managed services revenue could fetch around $1.5 million. The math isn’t hard—if you’re still heavy on T&M, you’re leaving a ton of money on the table. Why? Because there’s no contractual obligation for clients to stick around, and T&M is all about post-payments and admin headaches. Buyers want stability, predictability, and less drama. They don’t want to roll the dice on a company whose revenue could disappear faster than donuts in the break room. Stop Being the Auto Mechanic of IT Services Think of a T&M shop as an auto mechanic waiting for a tow truck to bring in the next broken-down car. You’re sitting around, hoping for that next emergency. Contrast that with a managed services model, where you’ve got recurring contracts, predictable income, and a client base that’s locked in. It’s the difference between scrambling for scraps and sitting down to a feast every month. Bottom line? If your business is still stuck in the T&M era, it’s time to modernize. Transitioning to managed services isn’t just a smart move; it’s a necessary one if you want to maximize your company’s value and future-proof your business.

Got a stack of cash and don’t know what to do with it? Instead of buying another business or going heavy on the latest software tool, how about investing in Hardware-as-a-Service (HaaS)? Think about it: you buy the equipment, lease it back to clients, and every few years, you refresh it. Sounds like a sweet deal, right? Why HaaS is Worth the Hype HaaS is not just about adding another line item to your invoice; it's about creating a new, predictable revenue stream. For MSPs flush with cash, offering HaaS can yield a nice 15% return rate. Plus, it elevates your value proposition to clients by taking hardware worries off their plates. And when it comes time for upgrades, guess who’s managing the process? That’s right—you are. By bundling HaaS with your managed services agreements, you’re not just selling a piece of equipment; you’re selling peace of mind. No more surprises with failing hardware, no more big upfront costs for clients—just a steady, predictable monthly fee. Bundling or Separating: The Art of Packaging Your Services When you sell HaaS, think about how you bundle it with other services. Should it be lumped into one neat managed services fee, or do you break it out separately? There are arguments for both sides. Bundling boosts your managed services revenue but can complicate things when tools change. Keeping them separate means more transparency, easier upgrades, and a clearer picture of costs for the client. Either way, the point is clear: HaaS isn’t just a buzzword. It’s a way to build value, increase returns, and keep clients locked in.

Think recruiters are too expensive? Think again. If you’ve ever tried to fill a key position in your company, you know the pain. Your email is clogged with mediocre resumes, and you’re already behind on a million other tasks. Here’s why recruiters might be your secret weapon. Recruiters Save You Time (And Sanity) Recruiters don’t just fill seats—they find people who fit. They’ll weed through the masses, perform technical tests, and give personality assessments. They don’t waste your time with the “not-quite-right” candidates. Instead, they narrow it down to a handful that could be your next hire. And when it comes to cultural fit, recruiters bring in experience from working with a variety of businesses, giving them insight into who will thrive in your specific environment. What’s more, recruiters aren’t just posting jobs and praying for applications. They tap into a network of professionals who aren’t even looking. That’s right—the best candidates already have jobs. They aren’t hanging out on job boards; they’re waiting for the right opportunity. A good recruiter finds these hidden gems. Temp-to-Perm: The Low-Risk, High-Reward Option For roles that are a bit more fluid—like admin or support positions—consider the temp-to-perm option. You get to test-drive an employee without committing. If it doesn’t work out after a few months, no harm, no foul. In places with strict labor laws, this can be a game-changer, saving you from potential legal headaches and ensuring you find the right fit. Stop thinking of recruiters as an expense. Think of them as an investment in the future of your business. If hiring is not your forte (and let’s be real, it’s not for most), then maybe it’s time to let the pros do what they do best.

Are you really an MSP, or are you just playing tech support roulette? If less than 50% of your revenue isn’t recurring, you’re not fooling anyone. Real MSPs thrive on predictable, recurring revenue, not just patching up problems and hoping for the next break-fix call. Why Recurring Revenue is Non-Negotiable Here’s the bottom line: Buyers—especially private equity—want to see steady, recurring revenue. No one’s interested in a business with inconsistent income from random projects and hardware sales. As Gary Stein says, “To be considered an MSP, at least 50% of your revenue should be recurring.”  But don’t settle for just meeting the minimum. Shoot for 65% or higher. That’s when your business stops being a gamble and starts being a solid investment. The math is simple. A company bringing in $1 million in T&M revenue might be valued at just $500,000. In contrast, $1 million in managed services revenue could be valued at $1.5 million. If your business isn’t focused on building that recurring revenue stream, you’re leaving serious money on the table. Know Your Numbers or Get Left Behind You might think, "Hey, I’m making a decent income." But if all you’re doing is covering your own salary, you’re not running a business—you’re just owning a job. And let’s be real: No one wants to buy a job. The goal is to generate profit, not just revenue. The top-performing MSPs hit 25% product margins. If you’re not there, it’s time to figure out why. If you’re not comparing yourself to the industry’s top performers, you’re flying blind. The market doesn’t care about excuses; it cares about results. And if 25% of MSPs can achieve those margins, there’s no reason you can’t either.