In the years before I founded Giant Rocketship, I owned an MSP. Like many MSP owners, I often found myself looking for ways to give back to my community. After all, we’re in a unique position to help businesses and organizations thrive with technology. But here’s one hard-learned lesson: offering something for free almost always backfires.
The Allure of Giving Back
When I owned my MSP, I was big on contributing to the community. Each year, we would select a non-profit to receive a free, full-service contract for a year. They got everything: agents, licenses, and the same SLA-backed support our paying clients received. It felt like a win-win—helping a local organization while building goodwill.
But it never worked out the way I hoped.
The clients we offered free services to always, always, turned out to be our worst clients. They were dismissive, ignored advice, and ultimately created more frustration than the paying customers who expected premium service. It wasn’t because they were non-profits—I’ve had fantastic experiences with paying non-profit clients. The problem was rooted in the psychology of “free.”
The Psychology of Free Services
In the MSP world, free services send an unintentional message: This isn’t worth paying for. Even when you deliver top-tier service, the client subconsciously values it less because they didn’t have to sacrifice anything for it. It’s like handing someone a free car—if they didn’t buy it, they’re less likely to maintain it or listen to the mechanic when it needs repairs.
For example, one non-profit client balked at upgrading an old server, even though we discounted the hardware and labor to nearly nothing. But they had no issue spending full retail on non-essential projects that cost far more. Their lack of investment in our advice stemmed, I believe, from the fact that they hadn’t invested in our partnership.
Why Free Services Don’t Work in the MSP Space
The problems with offering free services aren’t unique to my MSP experience—they’re a recurring theme in our industry. Here’s why this happens:
- Free Undermines Perceived Value
Clients equate cost with value. When you charge nothing, they assume your service must not be worth much, no matter how hard you work. - Misaligned Priorities
Paying clients tend to value your recommendations because they have a financial stake in the outcome. Free clients? They might ignore your advice because they’re not invested in the relationship. - Unrealistic Expectations
Ironically, free clients are often more demanding. They expect perfection but have little understanding of what’s involved. And when things go wrong, they’re more likely to assign blame to you. - Resource Drain
Your team spends just as much time (if not more) supporting free clients. The licenses and time you’re covering come straight out of your bottom line.
What Works Better: Discounts, Not Free
After learning this lesson the hard way, I shifted my approach. Instead of offering free services, consider these alternatives:
- Discounted Rates: A heavily discounted contract ensures the client has some skin in the game, without draining your resources entirely.
- Sponsored Support: Partner with another business or donor to cover the cost of your services for a non-profit.
- Defined Pro-Bono Work: If you must go free, clearly define the scope—such as a fixed number of hours per month.
These strategies maintain the value of your work while still allowing you to give back in a meaningful way.
Lessons Learned for MSPs Today
Although I’m now focused on running Giant Rocketship, which helps MSPs streamline their ticket lifecycle, my experience as an MSP owner taught me invaluable lessons about the dangers of offering free services. One of the most important? Respect your own work. If you don’t, your clients certainly won’t.
Generosity is admirable, but it has to be balanced with a clear understanding of your business’s worth. Free services might feel like a kind gesture, but they often lead to strained relationships, unrealistic expectations, and a lack of respect for your team.
So, the next time you’re tempted to offer something for free, think twice. Instead, find ways to give back that reinforce, rather than undermine, the value of what you bring to the table.
