4. The More Specialized, The Better

Belair said he has seen the most success for managed service providers when they specialize. Diving deep into verticals helps MSPs develop both deep expertise and case studies to show off to prospective clients, he said. For example, he said he has seen a group of managed service providers become extremely successful through serving only dental organizations. "We find that their relationship they have with vendors and customers is much more intimate," Belair said.

5. Compensation of The Sales Force

One of the big challenges in transitioning to a managed services model is figuring out how to compensate the sales force. Belair said he has seen a few major models. First, sales people get compensated on the first month of billing and then get a percentage on recurring revenue. Second, they get a percentage of recurring revenue and anything that gets added on. While the end result is much easier, Belair said the transition period is "very unique" and challenging.