How do MSPs make money on Microsoft 365?
My365 isn’t just an enabler. It’s structured so you can mark up and resell every piece. Here’s how partners turn the program into recurring revenue and project margin.
All-Inclusive Billing Model
Bundle Service Activities into your MSP agreements for predictable, recurring revenue.
Justified by annual or semi-annual Baseline updates that keep client tenants up to date and compliant with the latest standards. Bill as if the tenant were a managed server. Netlogic doesn’t resell licenses — that margin stays with your CSP relationship (or moves your client direct to Microsoft).
Out-of-Scope Project Billing
Pass project work to us at My365 rates and bill clients at fair market rates.
Suggested client rate: $250/hr. We do the technical work; you keep the relationship and the margin.
Suggested client pricing for common Service Activities.
Two of the highest-leverage activities you can resell, and what successful partners typically charge:
| Chargeable Service | My365 Learn (Monthly) | My365 Plus (Monthly & 1-Year) | Suggested Client Charge |
|---|---|---|---|
| Baseline Builder Setup | ✖ Not included Learn is for your tenant only. |
✔ 1 Service Activity / out of 10 | $399–$999 monthly management fee Depending on client size; bill as if the tenant were a managed server. |
| Tenant Assessment | ✖ Not included | ✔ 1 Service Activity / out of 10 | Include with monthly management fee, or $499 one-time |
💡 Tip: Even if you offer “all-inclusive” services, a Tenant Management fee should still be on your agreement, just as it would be for a managed server.
Why this is defensible to clients and auditors: the Baseline Builder configuration is the same Microsoft Zero Trust baseline we operate on our own endpoints. Aligned to the Microsoft Win11 25H2 Security Baseline, CIS Level 1, NIST CSF, and ISO 27001. See the Netlogic Security Posture & Compliance Architecture report for every control and how it maps.
30-hour project, side by side: Plus Monthly vs Plus 1-Year.
A representative project that an MSP would typically run through us. Same client charge; different margin depending on which Plus tier you’re on.
- Project length30 hours
- Your project rate$175/hr
- Our cost to you$5,250
- Suggested billable rate$250/hr
- Total charge to client$7,500
- Project length30 hours
- Your project rate$150/hr
- Our cost to you$4,500
- Suggested billable rate$250/hr
- Total charge to client$7,500
You invoice the client. We take care of the technical work. Your responsibility is the client relationship.
Project work eligible for pass-through billing.
Larger, scoped engagements where Plus partners typically run the project through My365 and resell at market rate:
- File Migrations
SharePoint, OneDrive, file-server consolidation - Email Migrations
To Microsoft 365, between tenants, mailbox cutover - Power Platform Apps
Power Apps, Power Automate, Dataverse buildouts - Hybrid Entra ID Setups
Entra Connect, conditional access, hybrid identity - Copilot Agent & AI Services
Copilot Studio agents, Copilot for M365 rollouts
Four ways MSPs maximize profit on My365.
-
1
Invoice for every Service Activity.
Make sure the work you use on a client’s tenant is billed back. Transferring our cost to your clients is the cleanest path to consistent margin.
-
2
Package and upsell.
A flat-fee Microsoft 365 management, security, and training bundle has higher perceived value than line-itemed services and is easier to sell.
-
3
Run the bigger projects through us.
Migrations, Power Platform, Hybrid Entra ID, Copilot agents. Large-scale work yields substantial returns with minimal touch on your side.
-
4
Acquire more clients.
Recurring revenue scales without adding fixed cost when My365 is bundled into every new MSP agreement.