The Biggest MSP Sales Process Mistakes and How to Avoid Them

The MSP sales process is the backbone that drives success for managed service providers. Yet, many MSPs struggle to close deals, generate consistent revenue, and build a scalable sales strategy. Why? Because they unknowingly make common mistakes that hinder growth. In this blog, we’ll uncover the biggest MSP sales process mistakes and how to fix them using proven MSP sales training techniques.

1. Relying Solely on Referrals for Growth

Referrals are great, and the quantity can be grown with the right process in place. But they cannot be relied on entirely as a scalable way to grow your MSP business. Many MSPs assume that their existing clients will bring in all the new business they need, but that’s not always the case.

Steps to address it:

• Use your data for a clear understanding of the ideal customers to target.
• Implement modern techniques for cold outreach and inbound marketing with MSP coaching.
• Take advantage of your network to build lead-generation events around this ICP.
• Use highly specific and targeted email marketing, LinkedIn / social marketing, and paid ads to attract new leads.

And of course, always make sure that the managed services sales process you have in place includes proactive lead-generation strategies. 

2. MSP Sales Process Resembles "Trial-And-Error"

Many MSPs approach sales without a structured process. They rely on gut instinct, or outdated sales tactics - leading to lost opportunities. With all employees operating under a clearly defined strategy, MSPs find that organic lead generation increases naturally.

Steps to address it:

• Lead generation, qualification, consultation, and closing must all have a carefully defined MSP sales process that team members adhere to.
• Track key performance metrics, such as close rates, sales cycle length, and lead sources.
• Leverage sales automation tools to streamline repetitive tasks, allowing the sales team to focus on building relationships and closing deals.
• Implement practice scenarios in your MSP sales training to refine your approach and improve conversion rates.

3. Focusing Too Much on Features Instead of Outcomes

A common mistake MSPs make is bombarding prospects with technical jargon ("How we do it") and a list of services instead of showing how a prospect's real business problems will be resolved. 

Steps to address it:

• Shift your messaging from a service-based pitch to a conversation around the client's needs and how your services offer advantages.
• Highlight how your services reduce downtime, improve security, affect their bottom line, and boost efficiency.
• Position yourself as a partner and guide towards resolution, rather than a vendor.
• Invest in authentic, ethical, and proven MSP sales coaching to master consultative selling techniques.

4. Poor Follow-Up Strategy

Many MSPs fail to follow up with leads effectively, assuming they'll reach out if a prospect is interested. However, studies show that most sales require multiple conversations before any kind of decision is made. Are you taking the steps required to put these into place?

Steps to address it:

• Implement a structured plan (Timelines!) for future conversations and follow up with calls, emails, and LinkedIn messages.
• Use CRM and email marketing tools to automate follow-ups and track interactions.
• Use a lead scoring system to gauge which prospects are more likely to convert, so you can prioritize your time and energy.

5. Underpricing Services to Win Clients

Offering lower prices to compete with other MSPs might bring in clients, but it’s not a sustainable growth strategy. Many MSPs end up working harder for less profit, onboard more difficult customers, and then struggle to scale.

Steps to address it:

• Create service packages at different pricing tiers, allowing clients to choose based on their needs - but don't compromise on your solution by parting out services
• Position yourself as a premium provider by emphasizing quality, and setting the right pricing expectations.
• Show prospects how investing in your services saves them money in the long run by avoiding downtime, security breaches, and inefficiencies.

6. Not Qualifying Leads Properly

Not every prospect is the right fit for your MSP services. Many MSPs have a hard time saying "no" or waste time chasing leads that don’t have the need, budget, or authority to make a decision.

Steps to address it:

• Streamline your discovery calls to reveal early in the process whether a prospect is a good fit before investing too much time.
• Develop a lead qualification framework with specific qualification criteria (need, budget, authority, timeline) as part of your MSP sales process.
• Make sure the sales team is capable of disqualifying leads that are not a good fit. Investing time in poor-fit leads will drain your resources.

Conclusion: Strengthen Your MSP Sales Process Today

Avoiding these mistakes requires a structured approach, ongoing training, and a clear strategy. Investing in the best MSP sales training and working with MSP sales experts can help you refine your approach, close more deals, and build a scalable business. But beyond increased ROI or close rates, we also see things like employee confidence and satisfaction improve across the board for MSPs. If you're ready to transform your MSP sales process, learn more about Feel-Good MSP sales training and coaching today.