If you’re running an MSP or IT services business and trying to market to “anyone who needs tech help,” you’re making your life unnecessarily hard. Not only is it harder to stand out, but you’re also leaving a ton of revenue, efficiency and opportunity on the table.
When I first launched my consulting business, I didn’t just throw darts and hope I’d land on a viable audience. I was very intentional. I knew I wanted to sell consulting services, which meant I had to target people who already understood the value of consulting. They had to get the value of ideas, processes and systems.
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And that’s what we’re diving into today:
Why choosing the right vertical (aka, niche) is one of the smartest strategic moves you can make as an MSP.
Why “Anyone With A Pulse” Isn’t A Strategy
Let’s say you’re pitching your services to a local restaurant, a dentist, a financial firm, a school district and a retail clothing store. Sounds great—diversification, right?
Not really.
- You have to rewrite your pitch every time.
- You can’t create scalable processes, because every client needs a different set of tools.
- Your marketing is generic…because it has to be.
- Your referrals are scattered.
- You don’t get deep enough to offer true value beyond tech support.
This leads to weak positioning, lower pricing and churn. The solution? Specialization.
My 3 Rules For Picking A Profitable Vertical
When I built my business, I looked for three core things in a market:
1. They Sold Intangible Services
I wanted a client who already valued knowledge. A cosmetic dentist, financial advisor or CPA understands that the thing they’re selling isn’t just a product. It’s expertise, results and trust.
These kinds of clients are far more likely to pay a premium for strategy-driven services because they get that the real value is in the outcome, not just the tool.
How this applies to you as an MSP: Targeting industries that are knowledge-based (e.g., legal, financial, medical) means your services are aligned with how they already think and buy.
2. They Had High Transaction Value
Let me ask you something: would you rather double a $5 sale or a $30,000 one?
I knew if I could help someone double their average transaction size from $15,000 to $30,000, they’d see my $3,000/month fee as a no-brainer. But if I helped a $5-per-transaction business (like a smoothie shop) get to $10 per sale… well, they’d need to sell a LOT of smoothies to break even.
How this applies to you: Focus on clients whose own services or products are high-value. Your impact is magnified, and so is your pricing power.
3. There Was An Energy And Values Match
I’m analytical. Metrics-obsessed. Strategic. I wanted to work with people who appreciated that and didn’t flinch at spreadsheets or systems.
This compatibility matters, especially when you’re trying to shift from “IT fix-it guy” to strategic partner. When you and your clients think the same way, trust builds faster and you can go deeper.
How this applies to you: Consider not just the industry you want to work in, but the kind of people you enjoy working with and who value your approach.
The 6 Strategic Advantages Of Niching Down
Once you commit to a niche, your entire business gets easier to scale and more enjoyable to run. Here’s why:
1. Marketing Gets Sharper (And Cheaper)
You’re not writing vague marketing copy anymore. You’re speaking directly to your audience’s pain points, tools, regulations, vendors and language. It makes ads perform better, cold emails convert higher and content hit harder.
2. Your Conversion Rates Improve
Specialists get hired faster. Why? Because they’re seen as less risky. When you say “We help dental practices stay HIPAA-compliant and ransomware-free,” you’re no longer “a tech company”—you’re the expert.
3. Your Clients Stay Longer
When you speak your client’s language and understand their business, they’re less likely to shop around. You’re not just fixing tickets, you’re helping them run better businesses.
4. You Can Charge More
With specialization comes the perception of authority. Even if your services are similar to a generalist’s, you can command a premium because your positioning is stronger.
5. You Attract Better Partners
Trade shows, vendors, consultants. They’re all potential JV partners when you share a vertical. Instead of trying to sell to everyone, you’re co-marketing with people who already serve your ideal clients.
6. You Discover Bigger Problems to Solve
When you go deep, you uncover hidden pain points your competitors never see. That opens the door to selling advanced solutions, consulting, compliance packages and more.
But What About the Downsides?
Niching down isn’t all sunshine. There are some legitimate risks. But, all of them are manageable if you plan ahead.
You Might Need to Expand Geographically
If your niche is small or tightly defined, you may need to grow your service area. (That could mean remote service, a virtual team or a regional expansion.)
You Could Cap Out The Market
Going too narrow may limit long-term growth, especially in rural areas or niche industries. But you can mitigate this with a portfolio of sub-verticals.
Disruptions In Your Niche Can Impact You
If your chosen industry suffers. Think COVID, tariffs, regulatory changes—you may feel the ripple effects. That’s why it’s smart to build verticals in stable and essential industries (like healthcare, finance or legal).
So, Should You Specialize?
YES! Especially if you’re tired of chasing small clients, fighting price wars and struggling to explain your value.
The right vertical:
- Magnifies your marketing.
- Increases profitability.
- Attracts better clients.
- Makes growth easier and more systematized.
Where to Start (In 15 Minutes Or Less)
- List your best clients by profitability and relationship quality.
- Group them by industry—do any patterns emerge?
- Research their transaction size and pain points.
- Decide where you can make the biggest impact.
Final Word: Stop Being “Just Another MSP”
You’re not a commodity. You’re not “just IT.”
You are a strategic partner, a compliance expert, a process optimizer—and your clients should see you that way. But that only happens when your message, market and services align.
Pick your vertical. Commit to the work. And watch your marketing transform.
Need help implementing a marketing strategy? Schedule a FREE MSP marketing strategy session. In 60 minutes or less, we’ll show you how to get in front of more high-quality prospects who WANT your services and are ready to buy.
