How to Exponentially Scale the Value of Managed Service Providers

In the early years, managed service providers struggled—especially generating demand. One industry veteran spent 18 years stagnating before discovering a breakthrough in marketing using Google pay-per-click advertising. This simple shift drove rapid growth and exposed a deep industry pain point: while many MSPs had the technical skills to deliver services, few understood how to generate leads effectively. This challenge in demand generation kept MSPs small and unsustainable for years.

However, as others implemented the same marketing tactics, it became clear that lead generation alone wasn’t enough. Some MSPs were getting 40 meetings but couldn’t close deals. Others closed deals but couldn’t deliver profitably because of poor operational scale. This dual failure in sales and scalability led to the development of what is now known as the three-legged stool: every successful MSP must master lead gen, sales, and scale. Without all three working together, growth is unsustainable and unprofitable.

The eventual solution was the founding of MSP20, a standardized, shared-service model that empowers small MSPs to operate like national players. By focusing obsessively on these three dimensions—marketing that works, sales that convert, and operations that scale—MSP20 now provides a repeatable path for growth. This section lays the groundwork for understanding how these core building blocks form the DNA of scalable managed service providers.

The industry shifted significantly from reactive, hourly “break-fix” models to proactive, flat-rate managed services. In the break-fix world, clients inadvertently rewarded MSPs when things went wrong—creating a misaligned incentive structure. True managed service providers now align with their customers’ goals: to prevent issues, maintain performance, and ensure security. By adopting a flat-rate, no-labor-billable model, MSP20 enables MSPs to profit only when systems run smoothly. This change transforms the entire dynamic.

This model is particularly important for clients with 50 to 1,000 users—organizations that are large enough to need continuous IT services but small enough not to justify an internal department. The strategy allows these clients to “fractionalize” a high-quality IT department, benefiting from a national helpdesk, 24/7 response, and high-end technical tools for the cost of a single in-house engineer. The MSP20 model makes small MSPs deliver like $100M providers.

What sets MSP20 apart is its reverse-franchise structure. Instead of buying and rebranding other MSPs, it integrates them under a shared framework: unified tools, contracts, SLAs, and delivery models. This enables the entire network to scale together while maintaining high profitability and operational consistency. Clients get predictable service, and MSPs gain efficiencies that would otherwise take decades to build.

Many managed service providers focus heavily on tools and certifications, but brand and marketing truly set them apart. Successful MSPs fuel their growth through consistent marketing investments, such as Google Ads and strategic brand positioning. This approach challenges the common mindset that treats marketing as an afterthought—insisting instead that visibility must come before credibility. Even the best service offerings remain unnoticed without establishing a strong brand presence.

This perspective on sales offers a refreshing change. Many MSPs complicate the sales process by relying on scare tactics, dense audits, or technical jargon. Instead, effective sales teams educate clients and guide them toward smarter business decisions. Prospects already recognize that their IT systems are broken, so they initiate the call. The key lies in helping them choose a partner who aligns with their business goals, not just their technical needs.

By reframing the sales process as a business conversation—not an IT pitch—MSP20 trains its members to simplify, connect, and convert at a much higher rate. This section offers a blueprint for MSPs struggling to close deals despite marketing success. It also illustrates how integrating marketing and sales creates a more coherent customer journey—from interest to conversion to delivery.

Scaling managed service providers is not just about tools—it’s about changing mindsets. Most MSPs get stuck due to emotional attachment to their tools or legacy processes. Joining MSP20 requires giving up those old tools in favor of a unified stack. While this transition is hard for engineers, it is critical to building scalable service delivery. As one analogy goes, “You’re arguing about the best shovel. I’m offering a trencher.”

Personal transformation drives the real breakthrough. MSP owners must confront the mirror and recognize that they often block their company’s growth. Leaders present a metaphorical compact mirror at events to emphasize that self-awareness is the only tool needed to fix a business. Owners must overcome internal barriers—ego, fear of change, or a desire for control—before scaling.

Leadership, then, becomes about building trust, vision, and follow-through. Drawing from experiences of discipline and overcoming adversity, the message is clear: leadership isn’t about perfection but authenticity and resilience. By casting a dream big enough for others to believe in and delivering results to reinforce that dream, MSP20 transforms five-person shops into thriving teams moving in the same direction.

The podcast concludes with a robust conversation about wealth creation for managed service providers. Most MSPs cap their potential by working “for the dollar” rather than building equity. MSP20’s roll-up model flips that dynamic: by combining valuation, standardization, and scale, members can double or triple their equity without selling early or burning out. The secret isn’t technical; it’s organizational.

A simple room example illustrates this: 50 MSPs, each worth $1M, could be worth $100M together. The only difference is their ego. By collaborating instead of competing, MSPs can unlock massive value. Many who joined MSP20 and left 40% of their shares in the roll-up now see their equity as worth more than their original companies. It’s a compelling case for long-term thinking and shared success.

Ultimately, this podcast isn’t just about scaling IT services—it’s about building a movement. One where dreamers, doers, and leaders come together to redefine what managed service providers can be. MSP20 offers a full-stack approach to business transformation from go-to-market to exit strategy.