IT services firm · 14 min

How an IT services firm makes money

Some IT firms get paid when your computer breaks. Others get paid every month so it doesn't. Same work, very different businesses. A few tickets on running your own.

Your business

Pick the business you'll run

Each lesson uses your pick for its numbers. You can change it any time.

What kind of IT business

Managed IT firm

Look after a few offices' computers for a monthly fee per user.

Pay-per-fix shop

Fix computers and networks when they break, and bill by the hour.

One-person IT business

Just you, a car and a laptop, for small offices and homes.

Pick a business to start.

Sources and every number (9)

Sources

Managed IT Services: memo to the Mayor and City Council, 11 September 2025, with a proposer's draft master customer service agreement · Midway City, Utah, 2025
Managed IT Services: memo to the Mayor and City Council, 14 November 2025 · Midway City, Utah, 2025
Nonemployer Statistics 2023 (table NS2300NONEMP): NAICS 5415, Computer Systems Design and Related Services, businesses with no paid employees by receipts size and legal form · U.S. Census Bureau, 2023
Occupational Outlook Handbook: Computer Support Specialists (pay in May 2025, where they work, jobs in 2025) · U.S. Bureau of Labor Statistics, 2025
Wagamon Technology Managed IT Services Agreement Renewal Update · Town of Fenwick Island, Delaware, 2026
CALC+ (Contract-Awarded Labor Category): ceiling rates for labor categories matching "help desk" on GSA schedule contracts · U.S. General Services Administration, 2026
2022 Economic Census, core statistics for the U.S. (table EC2254BASIC): NAICS 5415, Computer Systems Design and Related Services, with 541512, 541513 and 541519 (establishments, receipts, payroll, employees) · U.S. Census Bureau, 2022
2026 Microsoft 365 packaging and pricing updates (USD commercial list prices per user a month, effective July 1, 2026: Business Basic, Standard and Premium with Teams) · Microsoft Licensing, 2026
Texas Tax Code, chapter 151 (Limited Sales, Excise, and Use Tax): sections 151.0035, 151.0101 and 151.351 · Texas Legislature, 2026

Every number

$2,100/monthmidwaycityut.gov ·2025 · The lowest of the eleven monthly prices Midway City, Utah, received for managed IT services in 2025.
$5,031/monthmidwaycityut.gov ·2025 · The highest of the eleven monthly prices Midway City, Utah, received for managed IT services in 2025.
$2,402–$4,664midwaycityut.gov ·2025 · The one-time onboarding fees in many of the eleven proposals Midway City received for managed IT services in 2025.
$2,718/monthmidwaycityut.gov ·2025 · The monthly price of the firm Midway's committee recommended in November 2025, the third lowest of the eleven.
$2,402midwaycityut.gov ·2025 · That firm's one-time onboarding fee.
343,329 businessescensus.gov ·2023 · US computer systems design and related services businesses with no paid employees, 2023. The group also counts freelance programmers and designers.
57.8%census.gov ·2023 · Worked out from the Census: the share of those businesses that took in less than twenty-five thousand dollars in 2023.
21%bls.gov ·2025 · The share of computer user support specialists' jobs in computer systems design and related services, the biggest employer, 2025.
36 monthsmidwaycityut.gov ·2025 · The first term of the draft agreement a bidder attached to its proposal; it renews for the same length unless either side gives notice.
12 monthsmidwaycityut.gov ·2025 · The city's condition: it could leave without paying more after the first year.
5%midwaycityut.gov ·2025 · The draft agreement's yearly price increase, at least this much.
3%midwaycityut.gov ·2025 · The draft agreement's fee on payments made by credit card.
$1,423.65/monthdelaware.gov ·2026 · Fenwick Island, Delaware's monthly fee for its core managed IT agreement, 2026, Microsoft's office software licenses included.
$238.32/monthdelaware.gov ·2026 · Fenwick Island's separate monthly agreement for extra security services, paid by a grant.
$125/month (example number: Simplified example: what a managed IT firm charges for each person it supports, a month. Public contracts we found give monthly totals, not prices per user.) · Simplified example: what a managed IT firm charges for each person it supports, a month. Public contracts we found give monthly totals, not prices per user.
20 people (example number: Simplified example: the staff at one client, a small office.) · Simplified example: the staff at one client, a small office.
$2,500/month (example number: Simplified example: worked out: the users times the fee per user.) · Simplified example: worked out: the users times the fee per user.
18 hours (example number: Simplified example: the hours a firm's techs spent on one client in a month.) · Simplified example: the hours a firm's techs spent on one client in a month.
$138.89/hour (example number: Worked out: the monthly fee divided by the hours of work.) · Worked out: the monthly fee divided by the hours of work.
$100/hour (example number: Simplified example: what a pay-per-fix shop bills for an hour of work.) · Simplified example: what a pay-per-fix shop bills for an hour of work.
25 hours (example number: Simplified example: worked out: the monthly fee divided by the hourly rate.) · Simplified example: worked out: the monthly fee divided by the hourly rate.
$90/month (example number: Simplified example: what a one-person IT business charges for each person it supports, a month.) · Simplified example: what a one-person IT business charges for each person it supports, a month.
8 people (example number: Simplified example: the staff at one client, a small office.) · Simplified example: the staff at one client, a small office.
$720/month (example number: Simplified example: worked out: the users times the fee per user.) · Simplified example: worked out: the users times the fee per user.
6 hours (example number: Simplified example: the hours you spent on one small client in a month.) · Simplified example: the hours you spent on one small client in a month.
$120/hour (example number: Simplified example: worked out: the monthly fee divided by the hours of work.) · Simplified example: worked out: the monthly fee divided by the hours of work.
$30.24/hourbls.gov ·2025 · Median hourly pay of US computer support specialists (user support and network support together), May 2025: pay only, before payroll taxes and benefits.
$62,890/yearbls.gov ·2025 · Median yearly pay of US computer support specialists, May 2025: user support and network support specialists together.
$61,860/yearbls.gov ·2025 · Median yearly pay of US computer user support specialists alone, May 2025.
$80/hourgsa.gov ·2026 · The median of nearly three thousand ceiling rates for labor categories with help desk in their name on GSA schedule contracts, 2026: the most each firm may charge the federal government for an hour. Rounded to the dollar: the median is read on the day and moves by a few cents as contracts change.
35.1%census.gov ·2022 · Worked out from the Economic Census: what US computer systems design services firms with employees paid in wages, as a share of their receipts, 2022.
42.3%census.gov ·2022 · Worked out from the Economic Census: the same share for computer facilities management firms, which run clients' computer systems, 2022.
10 hours (example number: Simplified example: hours of fixing one client needs in an ordinary month.) · Simplified example: hours of fixing one client needs in an ordinary month.
2 hours (example number: Simplified example: a quiet month: one small fix.) · Simplified example: a quiet month: one small fix.
40 hours (example number: Simplified example: a bad month: a failing server and a week of calls.) · Simplified example: a bad month: a failing server and a week of calls.
20 users (example number: Simplified example: users on contract by opening day: one first client.) · Simplified example: users on contract by opening day: one first client.
10 users (example number: Simplified example: new users signed a month, about one small office every two months.) · Simplified example: new users signed a month, about one small office every two months.
10 hours (example number: Simplified example: hourly work a month: after-hours calls and small projects.) · Simplified example: hourly work a month: after-hours calls and small projects.
$11,000/month (example number: Simplified example: a managed IT firm's monthly costs: one tech's pay and payroll taxes, tools and licenses, insurance, a car, and your own pay.) · Simplified example: a managed IT firm's monthly costs: one tech's pay and payroll taxes, tools and licenses, insurance, a car, and your own pay.
0 users (example number: Simplified example: a pay-per-fix shop starts with no monthly agreements.) · Simplified example: a pay-per-fix shop starts with no monthly agreements.
0 users (example number: Simplified example: no monthly agreements yet: try adding some.) · Simplified example: no monthly agreements yet: try adding some.
70 hours (example number: Simplified example: hours billed a month by a pay-per-fix shop.) · Simplified example: hours billed a month by a pay-per-fix shop.
$7,500/month (example number: Simplified example: a pay-per-fix shop's monthly costs: a small shop, a van, tools, insurance and your own pay.) · Simplified example: a pay-per-fix shop's monthly costs: a small shop, a van, tools, insurance and your own pay.
8 users (example number: Simplified example: users on contract by opening day: one small office.) · Simplified example: users on contract by opening day: one small office.
4 users (example number: Simplified example: new users signed a month.) · Simplified example: new users signed a month.
25 hours (example number: Simplified example: hours billed a month for fixes and setups.) · Simplified example: hours billed a month for fixes and setups.
$4,500/month (example number: Simplified example: a one-person IT business's monthly costs: a car, tools and licenses, insurance and your own pay.) · Simplified example: a one-person IT business's monthly costs: a car, tools and licenses, insurance and your own pay.
$150/hour (example number: Simplified example: what a managed IT firm bills for an hour of work outside the monthly fee, like after-hours calls and projects.) · Simplified example: what a managed IT firm bills for an hour of work outside the monthly fee, like after-hours calls and projects.
$85/hour (example number: Simplified example: what a one-person IT business bills for an hour of work.) · Simplified example: what a one-person IT business bills for an hour of work.
$7/monthmicrosoft.com ·2026 · Microsoft's cheapest business plan (Business Basic: web apps and email, with Teams), per user a month, US commercial list price from July 2026.
$22/monthmicrosoft.com ·2026 · Microsoft's top small-business plan (Business Premium, with Teams), per user a month, US commercial list price from July 2026.

IT services firm · 14 min

How an IT services firm makes money

Some IT firms get paid when your computer breaks. Others get paid every month so it doesn't. Same work, very different businesses. A few tickets on running your own.

Your business

Pick the business you'll run

Each lesson uses your pick for its numbers. You can change it any time.

What kind of IT business

Managed IT firm

Look after a few offices' computers for a monthly fee per user.

Pay-per-fix shop

Fix computers and networks when they break, and bill by the hour.

One-person IT business

Just you, a car and a laptop, for small offices and homes.

Pick a business to start.

Sources and every number (9)

Sources

Managed IT Services: memo to the Mayor and City Council, 11 September 2025, with a proposer's draft master customer service agreement · Midway City, Utah, 2025
Managed IT Services: memo to the Mayor and City Council, 14 November 2025 · Midway City, Utah, 2025
Nonemployer Statistics 2023 (table NS2300NONEMP): NAICS 5415, Computer Systems Design and Related Services, businesses with no paid employees by receipts size and legal form · U.S. Census Bureau, 2023
Occupational Outlook Handbook: Computer Support Specialists (pay in May 2025, where they work, jobs in 2025) · U.S. Bureau of Labor Statistics, 2025
Wagamon Technology Managed IT Services Agreement Renewal Update · Town of Fenwick Island, Delaware, 2026
CALC+ (Contract-Awarded Labor Category): ceiling rates for labor categories matching "help desk" on GSA schedule contracts · U.S. General Services Administration, 2026
2022 Economic Census, core statistics for the U.S. (table EC2254BASIC): NAICS 5415, Computer Systems Design and Related Services, with 541512, 541513 and 541519 (establishments, receipts, payroll, employees) · U.S. Census Bureau, 2022
2026 Microsoft 365 packaging and pricing updates (USD commercial list prices per user a month, effective July 1, 2026: Business Basic, Standard and Premium with Teams) · Microsoft Licensing, 2026
Texas Tax Code, chapter 151 (Limited Sales, Excise, and Use Tax): sections 151.0035, 151.0101 and 151.351 · Texas Legislature, 2026

Every number

$2,100/monthmidwaycityut.gov ·2025 · The lowest of the eleven monthly prices Midway City, Utah, received for managed IT services in 2025.
$5,031/monthmidwaycityut.gov ·2025 · The highest of the eleven monthly prices Midway City, Utah, received for managed IT services in 2025.
$2,402–$4,664midwaycityut.gov ·2025 · The one-time onboarding fees in many of the eleven proposals Midway City received for managed IT services in 2025.
$2,718/monthmidwaycityut.gov ·2025 · The monthly price of the firm Midway's committee recommended in November 2025, the third lowest of the eleven.
$2,402midwaycityut.gov ·2025 · That firm's one-time onboarding fee.
343,329 businessescensus.gov ·2023 · US computer systems design and related services businesses with no paid employees, 2023. The group also counts freelance programmers and designers.
57.8%census.gov ·2023 · Worked out from the Census: the share of those businesses that took in less than twenty-five thousand dollars in 2023.
21%bls.gov ·2025 · The share of computer user support specialists' jobs in computer systems design and related services, the biggest employer, 2025.
36 monthsmidwaycityut.gov ·2025 · The first term of the draft agreement a bidder attached to its proposal; it renews for the same length unless either side gives notice.
12 monthsmidwaycityut.gov ·2025 · The city's condition: it could leave without paying more after the first year.
5%midwaycityut.gov ·2025 · The draft agreement's yearly price increase, at least this much.
3%midwaycityut.gov ·2025 · The draft agreement's fee on payments made by credit card.
$1,423.65/monthdelaware.gov ·2026 · Fenwick Island, Delaware's monthly fee for its core managed IT agreement, 2026, Microsoft's office software licenses included.
$238.32/monthdelaware.gov ·2026 · Fenwick Island's separate monthly agreement for extra security services, paid by a grant.
$125/month (example number: Simplified example: what a managed IT firm charges for each person it supports, a month. Public contracts we found give monthly totals, not prices per user.) · Simplified example: what a managed IT firm charges for each person it supports, a month. Public contracts we found give monthly totals, not prices per user.
20 people (example number: Simplified example: the staff at one client, a small office.) · Simplified example: the staff at one client, a small office.
$2,500/month (example number: Simplified example: worked out: the users times the fee per user.) · Simplified example: worked out: the users times the fee per user.
18 hours (example number: Simplified example: the hours a firm's techs spent on one client in a month.) · Simplified example: the hours a firm's techs spent on one client in a month.
$138.89/hour (example number: Worked out: the monthly fee divided by the hours of work.) · Worked out: the monthly fee divided by the hours of work.
$100/hour (example number: Simplified example: what a pay-per-fix shop bills for an hour of work.) · Simplified example: what a pay-per-fix shop bills for an hour of work.
25 hours (example number: Simplified example: worked out: the monthly fee divided by the hourly rate.) · Simplified example: worked out: the monthly fee divided by the hourly rate.
$90/month (example number: Simplified example: what a one-person IT business charges for each person it supports, a month.) · Simplified example: what a one-person IT business charges for each person it supports, a month.
8 people (example number: Simplified example: the staff at one client, a small office.) · Simplified example: the staff at one client, a small office.
$720/month (example number: Simplified example: worked out: the users times the fee per user.) · Simplified example: worked out: the users times the fee per user.
6 hours (example number: Simplified example: the hours you spent on one small client in a month.) · Simplified example: the hours you spent on one small client in a month.
$120/hour (example number: Simplified example: worked out: the monthly fee divided by the hours of work.) · Simplified example: worked out: the monthly fee divided by the hours of work.
$30.24/hourbls.gov ·2025 · Median hourly pay of US computer support specialists (user support and network support together), May 2025: pay only, before payroll taxes and benefits.
$62,890/yearbls.gov ·2025 · Median yearly pay of US computer support specialists, May 2025: user support and network support specialists together.
$61,860/yearbls.gov ·2025 · Median yearly pay of US computer user support specialists alone, May 2025.
$80/hourgsa.gov ·2026 · The median of nearly three thousand ceiling rates for labor categories with help desk in their name on GSA schedule contracts, 2026: the most each firm may charge the federal government for an hour. Rounded to the dollar: the median is read on the day and moves by a few cents as contracts change.
35.1%census.gov ·2022 · Worked out from the Economic Census: what US computer systems design services firms with employees paid in wages, as a share of their receipts, 2022.
42.3%census.gov ·2022 · Worked out from the Economic Census: the same share for computer facilities management firms, which run clients' computer systems, 2022.
10 hours (example number: Simplified example: hours of fixing one client needs in an ordinary month.) · Simplified example: hours of fixing one client needs in an ordinary month.
2 hours (example number: Simplified example: a quiet month: one small fix.) · Simplified example: a quiet month: one small fix.
40 hours (example number: Simplified example: a bad month: a failing server and a week of calls.) · Simplified example: a bad month: a failing server and a week of calls.
20 users (example number: Simplified example: users on contract by opening day: one first client.) · Simplified example: users on contract by opening day: one first client.
10 users (example number: Simplified example: new users signed a month, about one small office every two months.) · Simplified example: new users signed a month, about one small office every two months.
10 hours (example number: Simplified example: hourly work a month: after-hours calls and small projects.) · Simplified example: hourly work a month: after-hours calls and small projects.
$11,000/month (example number: Simplified example: a managed IT firm's monthly costs: one tech's pay and payroll taxes, tools and licenses, insurance, a car, and your own pay.) · Simplified example: a managed IT firm's monthly costs: one tech's pay and payroll taxes, tools and licenses, insurance, a car, and your own pay.
0 users (example number: Simplified example: a pay-per-fix shop starts with no monthly agreements.) · Simplified example: a pay-per-fix shop starts with no monthly agreements.
0 users (example number: Simplified example: no monthly agreements yet: try adding some.) · Simplified example: no monthly agreements yet: try adding some.
70 hours (example number: Simplified example: hours billed a month by a pay-per-fix shop.) · Simplified example: hours billed a month by a pay-per-fix shop.
$7,500/month (example number: Simplified example: a pay-per-fix shop's monthly costs: a small shop, a van, tools, insurance and your own pay.) · Simplified example: a pay-per-fix shop's monthly costs: a small shop, a van, tools, insurance and your own pay.
8 users (example number: Simplified example: users on contract by opening day: one small office.) · Simplified example: users on contract by opening day: one small office.
4 users (example number: Simplified example: new users signed a month.) · Simplified example: new users signed a month.
25 hours (example number: Simplified example: hours billed a month for fixes and setups.) · Simplified example: hours billed a month for fixes and setups.
$4,500/month (example number: Simplified example: a one-person IT business's monthly costs: a car, tools and licenses, insurance and your own pay.) · Simplified example: a one-person IT business's monthly costs: a car, tools and licenses, insurance and your own pay.
$150/hour (example number: Simplified example: what a managed IT firm bills for an hour of work outside the monthly fee, like after-hours calls and projects.) · Simplified example: what a managed IT firm bills for an hour of work outside the monthly fee, like after-hours calls and projects.
$85/hour (example number: Simplified example: what a one-person IT business bills for an hour of work.) · Simplified example: what a one-person IT business bills for an hour of work.
$7/monthmicrosoft.com ·2026 · Microsoft's cheapest business plan (Business Basic: web apps and email, with Teams), per user a month, US commercial list price from July 2026.
$22/monthmicrosoft.com ·2026 · Microsoft's top small-business plan (Business Premium, with Teams), per user a month, US commercial list price from July 2026.

How an IT services firm makes money

Pick the business you'll run

Spot something wrong?

How an IT services firm makes money

Pick the business you'll run

Spot something wrong?