In today’s technology-driven world, the right Managed Service Provider (MSP) can make all the difference in your business. MSPs are supposed to be your trusted partner, working alongside you to ensure seamless IT operations. But have you ever stopped to consider how an MSP’s internal compensation structure could impact the quality of service you receive? If you haven’t, it’s time to rethink how you choose your MSP.

The Vendor-Client Relationship vs. True Partnership

Do you currently work with an MSP? How did the sales process go, and more importantly, how are you treated once the deal is done? Ever felt that your quarterly business reviews (QBRs) were less about your needs and more about sales opportunities for your MSP? If this sounds familiar, the compensation model at your MSP might be a key contributor.

There’s a major difference between MSPs structured around a traditional vendor-client relationship versus those built on a true business partnership. The vendor-client model often puts an emphasis on constant revenue growth at the expense of client retention and satisfaction. Meanwhile, an MSP focused on a mutually beneficial relationship will prioritize your long-term success and foster a strong, ongoing partnership.

Compensation Models That Reward Short-Term Gains

It’s common for MSPs to reward salespeople based on new client acquisition. This often leads to quick wins with little regard for long-term client relationships. Salespeople are incentivized to close as many deals as possible, often with minimal effort after the sale is made. This can sometimes result in clients being abandoned or underserved once the initial deal is struck.

Similarly, account managers are often compensated based on revenue growth from existing clients, not on retention or client satisfaction. This is where things can go awry—your account manager might focus more on upselling services than addressing your actual needs.

The CyberStreams Approach: A Compensation Structure That Prioritizes Client Success

At CyberStreams, we’ve restructured our compensation models to ensure our clients are not just another number. Here’s how:

1. Sales Compensation: Our salespeople are 100% commission-based, but they only get paid when a new client is successfully onboarded. They remain engaged throughout the onboarding process, working with both internal teams and clients to ensure a smooth transition and lasting success.

2. Account Management Compensation: Account managers at CyberStreams are incentivized based on revenue retention—not growth. This means their primary focus is on keeping clients happy, resolving issues promptly, and maintaining long-term relationships.

3. Technician Compensation: Our technicians are compensated based on the speed and efficiency of resolving issues, but their performance is also linked to client satisfaction scores. This ensures that they are not only quick to resolve technical problems but also provide a quality experience for our clients.

Why This Matters for Your Business

The way your MSP structures compensation directly impacts the quality of service you receive. If an MSP’s employees are only incentivized to acquire clients and upsell services, you may end up feeling like just another transaction. However, when compensation is tied to client happiness, retention, and issue resolution, you’re more likely to experience the ongoing support and partnership that your business needs.

Key Takeaways and Next Steps

When selecting an MSP, it’s essential to consider their compensation structure, as it can directly influence the service quality and overall success of the partnership. Here are some important steps to take:

1. Ask About Compensation Models: When vetting potential MSPs, ask how their salespeople, account managers, and technicians are compensated. This can give you valuable insight into what motivates them and how they’ll prioritize your needs.

2. Look for Long-Term Partnerships: Find an MSP that rewards retention and client satisfaction rather than short-term sales goals. This will ensure your needs are met beyond the initial contract signing.

3. Open Communication: Foster an open dialogue with your MSP to ensure they are truly invested in your long-term success, not just making a quick sale.

Conclusion

Selecting the right MSP goes beyond just outsourcing IT services—it’s about forming a strategic partnership. The right MSP should align technology with your business goals, ensuring long-term success through effective IT management. By choosing an MSP with a compensation structure that values client satisfaction and retention, you set the stage for a productive, collaborative relationship that benefits both parties. Don’t settle for anything less than an MSP who is dedicated to your success and invested in building a lasting partnership.