Three tiers, real numbers, and the margin math that makes compliance-as-a-service profitable.
Three Tiers
The most common reason MSPs don't launch a compliance practice isn't technical capability — it's not knowing what to charge or what to include. This playbook gives you a starting point. Adjust based on your market, your labor rates, and your client mix.
Tier 1
Essentials
$800–$1,000/month
per client
Best for
Smaller clients (under 50 seats), single-framework requirements, limited IT complexity
What's included
Annual risk assessment (Blacksmith platform)
Written security policy set (templated)
Risk register (maintained quarterly)
One compliance framework monitored (HIPAA or NIST CSF)
Quarterly posture report
Your labor estimate
~2 hours/month per client
Target gross margin
~55–65% at $75/hr labor + $200/mo platform
Most common
Tier 2
Managed
$1,200–$1,500/month
per client (avg: $1,300)
Best for
Mid-size clients (50–200 seats), 1–2 active frameworks, clients with contractual compliance requirements
What's included
Everything in Essentials, plus:
Semi-annual risk assessment
Two frameworks monitored
Monthly policy review
Client-facing compliance dashboard access
Quarterly QBR with executive summary
Incident response plan (maintained)
Your labor estimate
~6–8 hours/month per client
Target gross margin
~40–50% at $75/hr labor + $200/mo platform
Tier 3
Advisory
$2,500–$4,000/month
per client
Best for
Enterprise SMB (200+ seats), regulated industries, clients preparing for formal audits or certifications
What's included
Everything in Managed, plus:
Monthly risk assessment
Unlimited frameworks
vCISO advisory hours (4–8/month)
Audit preparation support
Board-level reporting
Employee training coordination
Vendor risk program
Your labor estimate
~10–15 hours/month per client
Target gross margin
~55–70% at $75/hr labor + $200/mo platform
Unit Economics
How many clients until this pays for itself?
Clients
Monthly Revenue (Managed tier)
Est. Labor Cost (7h @ $75/h)
Blacksmith Platform Cost
Net Margin
1
$1,300
$525
$200
~$575
5
$6,500
$2,625
$1,000
~$2,875
10
$13,000
$5,250
$2,000
~$5,750
20
$26,000
$10,500
$4,000
~$11,500
Labor cost uses a $75/hr blended rate (7h/mo midpoint for Managed tier). Blacksmith platform cost is $200/client/month (current MSRP). Your actual rates will vary.