{"id":34782,"date":"2023-05-22T13:47:49","date_gmt":"2023-05-22T09:47:49","guid":{"rendered":"https:\/\/www.msp360.com\/resources\/?p=34782"},"modified":"2024-01-23T19:43:30","modified_gmt":"2024-01-23T15:43:30","slug":"msp-sales","status":"publish","type":"post","link":"https:\/\/www.msp360.com\/resources\/blog\/msp-sales\/","title":{"rendered":"The Comprehensive Guide to MSP Sales"},"content":{"rendered":"<p>Running a sales operation may not be the most exciting part of your work as an MSP. But the fact is that, for an MSP business to be successful it needs an effective sales plan, sales team, and strategy for tracking sales performance.<\/p>\n<p>Keep reading for tips on how to implement each of these things for your MSP business, along with links to further reading with additional details on each topic.<br \/>\n<!--more--><\/p>\n<h2>Create a Customer Profile<\/h2>\n<p>You can\u2019t sell effectively if you don\u2019t know who your customers are. That\u2019s why building a profile of your target customer is a crucial first step in developing an MSP sales strategy.<\/p>\n<p>To be clear, when we say you should build a customer profile, we mean that you should identify the key characteristics of the customers to whom you will ideally sell. This is different from acquiring customers first, then figuring out what their profiles are. If you start by determining what your ideal customer looks like, you can target those types of customers with your MSP sales operation.<\/p>\n<p>This makes for a much more effective strategy than simply casting a wide net and seeing which customers respond. If you take that approach, you may end up spending sales resources on leads who are not a good fit for your company (based on their technical needs, budget, and so on). Worse, you could end up with customers whom you can\u2019t really support.<\/p>\n<div class=\"call-to-action\">\n<div class=\"call-to-action__left\" style=\"width: 30%;\"><img decoding=\"async\" src=\"https:\/\/www.msp360.com\/resources\/wp-content\/uploads\/2020\/06\/wp_pic_preview-3.png\" alt=\"WP icon\" \/><\/div>\n<div class=\"call-to-action__right\" style=\"width: 70%;\">\n<div class=\"call-to-action__title\">MSP Sales Pitch: 6 Tips from a Real MSP<\/div>\n<div class=\"call-to-action__text\">Create a dedicated sales pitch that will keep prospects engaged and your sales team focused on the task at hand.<\/div>\n<div class=\"call-to-action__text\">\n<!--HubSpot Call-to-Action Code --><span class=\"hs-cta-wrapper hs-cta-deferred\" id=\"hs-cta-wrapper-b73aefb2-e308-467c-8fc9-53801da0fcb9\" data-portal=\"5442029\" data-id=\"b73aefb2-e308-467c-8fc9-53801da0fcb9\"><span class=\"hs-cta-node hs-cta-b73aefb2-e308-467c-8fc9-53801da0fcb9\" id=\"hs-cta-b73aefb2-e308-467c-8fc9-53801da0fcb9\"><!--[if lte IE 8]><div id=\"hs-cta-ie-element\"><\/div><![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/5442029\/b73aefb2-e308-467c-8fc9-53801da0fcb9\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"hs-cta-img\" id=\"hs-cta-img-b73aefb2-e308-467c-8fc9-53801da0fcb9\" style=\"border-width:0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/5442029\/b73aefb2-e308-467c-8fc9-53801da0fcb9.png\" alt=\"CTA\"><\/a><\/span><\/span><!-- end HubSpot Call-to-Action Code -->\n<\/div>\n<\/div>\n<\/div>\n<p>So, start off your MSP sales strategy by building a profile of the customers whom you are well-positioned to serve. Be sure that your profile identifies the following:<\/p>\n<h3>The Size of the Customer\u2019s Company<\/h3>\n<p>How many employees does your ideal customer have? How many devices exist within the customer\u2019s IT infrastructure? What amount of budget should the customer have to spend on managed IT services? These are all important questions to answer to ensure that you don\u2019t bite off more than you can chew, while at the same time keeping your business profitable.<\/p>\n<h3>Industry<\/h3>\n<p>Which industry or industries do you want to provide services for? Many MSPs specialize in certain verticals, such as healthcare or finance.<\/p>\n<p><span class=\"further-reading \">Further reading<\/span> <a href=\"https:\/\/www.msp360.com\/resources\/blog\/5-tips-for-choosing-your-vertical\/\">5 Tips for Choosing Your Vertical<\/a><\/p>\n<h3>Pain Points<\/h3>\n<p>What, specifically, does your customer need from an MSP? The answer to this question includes which types of managed services the company is looking for, as well as the level of support and guidance that it requires. Some customers are looking only for specific services, like data backup or server management, while others need big-picture guidance for their overall IT strategy.<\/p>\n<p><span class=\"further-reading \">Further reading<\/span> <a href=\"https:\/\/www.msp360.com\/resources\/blog\/top-5-smb-pain-points-solved-by-msps\/\">Top 5 SMB Pain Points Solved by MSPs<\/a><\/p>\n<h3>Who Are the Decision-Makers?<\/h3>\n<p>Who do you need to reach your target customer\u2019s company in order to market yourself and close a deal? For smaller companies, the decision-maker is often a CTO or (for smaller companies) even a CEO. At larger clients, the decision-makers for a managed services contract will be mid-level management.<\/p>\n<p>Once you\u2019ve answered all of these questions, you can create a customer profile, and design sales operations that target that portfolio.<\/p>\n<h2>MSP Sales Funnel<\/h2>\n<p>Once you know who your customers are, you\u2019re ready to begin MSP sales operations. The best way to do this is to adhere to the tried-and-true sales process, which includes the following steps:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.msp360.com\/resources\/blog\/msp-lead-generation\/\">Lead generation<\/a>, during which the MSP generates awareness and interest among potential customers in the MSP\u2019s services.<\/li>\n<li><a href=\"https:\/\/www.msp360.com\/resources\/blog\/qualifying-msp-leads\/\">Qualifying of prospects<\/a>, meaning that the MSP engages with leads via phone conversations or email to confirm that they are good potential customers.<\/li>\n<li>Proposal of services to provide to qualified prospects.<\/li>\n<li>The closing of the deal.<\/li>\n<li>Follow-up and loyalty programs to motivate contract renewals or increased business.<\/li>\n<\/ul>\n<p id=\"last\">This process is sometimes represented visually as a sales funnel. For more on these steps, check out our guide to MSP sales operations.<\/p>\n<p><span class=\"further-reading \">Further reading<\/span> <a href=\"https:\/\/www.msp360.com\/resources\/blog\/msp-sales-cadence-key-things-to-learn\/\">MSP Sales Cadence: Key Things to Learn<\/a><\/p>\n<div id=\"slidebox\"><!--HubSpot Call-to-Action Code --><span class=\"hs-cta-wrapper hs-cta-deferred\" id=\"hs-cta-wrapper-aa07fdb8-7776-46a5-9fa0-ec6e93f0f0a6\" data-portal=\"5442029\" data-id=\"aa07fdb8-7776-46a5-9fa0-ec6e93f0f0a6\"><span class=\"hs-cta-node hs-cta-aa07fdb8-7776-46a5-9fa0-ec6e93f0f0a6\" id=\"hs-cta-aa07fdb8-7776-46a5-9fa0-ec6e93f0f0a6\"><!--[if lte IE 8]><div id=\"hs-cta-ie-element\"><\/div><![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/5442029\/aa07fdb8-7776-46a5-9fa0-ec6e93f0f0a6\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"hs-cta-img\" id=\"hs-cta-img-aa07fdb8-7776-46a5-9fa0-ec6e93f0f0a6\" style=\"border-width:0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/5442029\/aa07fdb8-7776-46a5-9fa0-ec6e93f0f0a6.png\" alt=\"CTA\"><\/a><\/span><\/span><!-- end HubSpot Call-to-Action Code --><\/div>\n<div class=\"call-to-action\">\n<div class=\"call-to-action__left\" style=\"width: 60%;\">\n<div class=\"call-to-action__tag\">FREE WHITEPAPER<\/div>\n<div class=\"call-to-action__title\">Guide to Sales Funnel and Sales Operations for MSPs<\/div>\n<div class=\"call-to-action__text\">Tips on workflow and strategies to help you optimize the MSP sales process<\/div>\n<!--HubSpot Call-to-Action Code --><span class=\"hs-cta-wrapper hs-cta-deferred\" id=\"hs-cta-wrapper-32393d7f-6d80-49a1-b4df-aadfd3486315\" data-portal=\"5442029\" data-id=\"32393d7f-6d80-49a1-b4df-aadfd3486315\"><span class=\"hs-cta-node hs-cta-32393d7f-6d80-49a1-b4df-aadfd3486315\" id=\"hs-cta-32393d7f-6d80-49a1-b4df-aadfd3486315\"><!--[if lte IE 8]><div id=\"hs-cta-ie-element\"><\/div><![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/5442029\/32393d7f-6d80-49a1-b4df-aadfd3486315\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"hs-cta-img\" id=\"hs-cta-img-32393d7f-6d80-49a1-b4df-aadfd3486315\" style=\"border-width:0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/5442029\/32393d7f-6d80-49a1-b4df-aadfd3486315.png\" alt=\"CTA\"><\/a><\/span><\/span><!-- end HubSpot Call-to-Action Code -->\n<\/div>\n<div class=\"call-to-action__right\" style=\"width: 40%;\"><img decoding=\"async\" src=\"https:\/\/www.msp360.com\/resources\/wp-content\/uploads\/2020\/03\/Guide-to-Sales-Funnel-and-Sales-Operations-for-MSPs.png\" alt=\"WP icon\" \/><\/div>\n<\/div>\n<h2>Measuring MSP Sales Metrics<\/h2>\n<p>Sustaining a successful MSP sales operation requires monitoring and measuring it in order to track performance, identify weak points, and find ways to achieve continuous improvement.<\/p>\n<p>The most common MSP sales metrics to track include:<\/p>\n<ul>\n<li>Median Recurring Revenue, or your average revenue in a given period.<\/li>\n<li>Average Deal Size, or the average value of the contracts you sign.<\/li>\n<li>Time to close, which refers to how long it takes you to close a deal, on average.<\/li>\n<\/ul>\n<p>For more insight on these and other metrics that can help you measure your sales performance, see our article on MSP sales metrics.<\/p>\n<p><span class=\"further-reading \">Further reading<\/span> <a href=\"https:\/\/www.msp360.com\/resources\/blog\/msp-sales-metrics\/\">Guide to MSP Sales Critical Metrics<\/a><\/p>\n<h2>Managing an MSP Sales Team<\/h2>\n<p>At first, you might rely on yourself and your technical staff to run sales operations. But as your MSP business grows, you\u2019ll need to hire and manage dedicated sales personnel.<\/p>\n<p>Finding and managing the right salespeople for your business is no easy task, especially for MSPs who specialize in technical services, not sales and sales management. But as long as you ensure that you post clear job ads, set <a href=\"https:\/\/www.msp360.com\/resources\/blog\/msp-sales-compensation\/\">MSP sales compensation plans<\/a> properly, and document your sales process effectively, your sales team is easier to manage than you might expect.<\/p>\n<p>For tips on these processes, see our guide on building and managing an MSP sales team.<\/p>\n<h2>Conclusion<\/h2>\n<p>As an MSP, your specialty is providing managed IT services. But running a business is also critical if you want to succeed as an MSP, and that requires a systematic approach to building and managing MSP sales operations. The processes and resources described above will help you get started with this complex but essential part of running an MSP business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Running a sales operation may not be the most exciting part of your work as an MSP. But the fact is that, for an MSP business to be successful it needs an effective sales plan, sales team, and strategy for tracking sales performance. Keep reading for tips on how to implement each of these things [&hellip;]<\/p>\n","protected":false},"author":59,"featured_media":44352,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[889,878],"tags":[917],"class_list":["post-34782","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-msp-business-guides","category-msp-university","tag-msp-sales"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/posts\/34782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/comments?post=34782"}],"version-history":[{"count":1,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/posts\/34782\/revisions"}],"predecessor-version":[{"id":55524,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/posts\/34782\/revisions\/55524"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/media\/44352"}],"wp:attachment":[{"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/media?parent=34782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/categories?post=34782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.msp360.com\/resources\/wp-json\/wp\/v2\/tags?post=34782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}