$7M MSP Owner: "What the Hell Is Going On?"
A $7M MSP owner reached out to us last week with a problem that's becoming painfully common.
Good reputation? Check. Solid service delivery? Check. Productized offerings? Check.
But his close rates had tanked.
"Is it the economy? Fear of tariffs? What the hell is going on?" he asked.
So we ran a sales audit. And what we found is something I'm seeing everywhere right now – but it's only recently become a critical issue.
The Hidden Inefficiency Killing MSP Sales
Here's what was happening:
Two sales reps. Both responsible for:
Generating their own leads
Running discovery
Working with engineers on proposals
Presenting and closing deals
Managing accounts and upsells
Full cycle. Lead gen to account management.
Sounds efficient, right? Wrong.
Here's the kicker: Each rep excelled at ONE thing but was mediocre at the other two.
Rep #1: LinkedIn outreach wizard. Could fill his calendar with intro calls all day long. Closing those deals? Couldn't do it to save his life.
Rep #2: Closing machine. Give him a qualified opportunity and he'd convert it. But finding those opportunities himself? Not happening.
Neither was great at account management – just good enough to get by.
Why This Matters Now More Than Ever
In good times, you can get away with this inefficiency. The economy's humming, deals flow easier, everyone's happy.
But when uncertainty creeps in – inflation fears, recession talk, whatever – people hesitate. They delay decisions.
And suddenly, those hidden inefficiencies become deal killers.
What worked okay six months ago is now tanking your pipeline.
The Fix: Stop Asking Quarterbacks to Play Defense
Think about your service delivery. You don't ask your Level 1 techs to handle complex cybersecurity issues. Why? Because specialization drives results.
Same principle applies to sales.
Here's the optimized model we're implementing:
1. Dedicated Lead Generation (SDR/BDR): Someone who ONLY focuses on:
Responding to marketing touches
Outbound prospecting
Booking qualified meetings
They're not selling services. They're selling time – getting prospects to invest 15-30 minutes. That's a different skill entirely.
2. Focused Outside Sales Reps: Your closers should prospect, but they’re more value to you closing deals, not cold calling. The sweet spot? They generate about half their own opportunities, with marketing/SDRs providing the rest. When marketing/SDRs start to provide more than that, hire another outside sales rep.
3. Account Management Specialists: Different personality. Different skills. They're not hunters – they're farmers. And they're selling too, just differently.
The Bottom Line
One MSP we restructured this year? 30% growth in a market averaging 6%.
The company providing this structure? It's seeing dramatically better results than those asking reps to do everything.
Adam Smith figured this out centuries ago: specialization creates production. It's not just economic theory – it's how you build a sales machine that actually scales.
Your Next Move
If your close rates are dropping or sales are slowing, look at your model, not just your reps.
Are you asking people to excel at three different jobs? That's your leak.
Fix it now while others are panicking about the economy. When confidence returns (and it always does), you'll be positioned to absolutely dominate.
Want help evaluating your sales structure? Hit reply and let's talk.
Adios,
Ray
P.S. That $7M MSP? We're restructuring their entire sales model as I write this. I'll share the results in a future newsletter, but if history is any indicator, they're about to see growth while everyone else is sliding downhill on sales metrics.
