The former Reds' midfielder believes that the performances of the club in cup competitions this season shouldn't detract from how poor and wasteful they have been in the league
Kenny Dalglish's side currently see themselves in eight place in the league after a topsy turvy season which has seen them win just five times in 18 games at Anfield all season.
In Molby's eyes, the problems stem from a lack of quality up front, despite the club having spent upwards of £50 million on strike duo Luis Suarez and Andy Carroll.
"They spent a lot of money last season," Molby told BBC Sport.
"But with all the chances they have wasted, they have to find somebody to score more goals.
"They need wide men who can bring us real quality, a real playmaker in midfield and of course, importantly, and depending on how much money is available, a goalscorer."
Liverpool look set to record their lowest ever league finish since being relegated from the top flight in 1954 and Molby believes that the club must aim for a spot in the Champions League once again, with the club set for a third consecutive campaign out of Europe's elite next season.
He continued: "There have been some really disappointing performances in the Premier League and you can't overlook that.
"If you become a cup team and you finish seventh, eighth or ninth in the Premier League, the group of players you are going to attract, as great as your history is, is limited.
"Every player worth his salt wants to play in the Champions League. As much as they say the cups are great, Liverpool have to get back there."