1$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 the number of his new closed deals has 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:

They had 2 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—from lead gen to account management.

Sounds efficient, but it’s not.

Here’s why: Each rep excelled at ONE thing but was mediocre at the others.

Rep #1: Wizard at cold outreach. He used LinkedIn, email, and cold calls incredibly well. He could fill his calendar with intro calls all day long. But he couldn’t close a sale.

Rep #2: Closing machine. Give him a qualified opportunity and he'd convert it. But finding those opportunities himself? Not happening.

And 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

Look at your service delivery. Whether you have three tiers or specialists or both, you don’t ask one tech to handle everything from basic tickets to advanced security incidents. Specialization drives results.

Your sales process should work the same way.

Just like you break tech issues into different levels and incorporate specialization, I recommend optimizing your sales model with three roles:

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 of 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 late last year? 30% growth in a market averaging 6%.

They’re getting better results because they have a more efficient sales model with the right people in each specialized role.

The added advantage is they have the makings of a real Sales org that allows people to ascend into the next role.

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 sales model as I write this. One person will specialize in opening deals while the other focuses on closing them. The combined results will generate enough revenue to hire someone dedicated to manage and grow the account. I'll share the results in a future newsletter, but if history is any indicator, they're about to see growth while everyone else stalls out.