Breaking Free From The MSP Crowd: The Power Of Specialization

Robin Robins MSP Marketing

For some Managed Service Providers (MSPs), standing out from the crowd can be a Herculean task. Many MSPs find themselves trapped in the cycle of being perceived as just another run-of-the-mill IT company, grappling with a slew of challenges that hinder their growth. Let’s dive into the core issues plaguing MSPs’ sales and marketing strategies and reveal the secret to overcoming these hurdles: authority positioning.

Breaking Free From The Generalist Trap

Common issues faced by MSPs:

  1. Lack of Interest from Prospects: It’s a familiar scenario – reaching out to potential clients only to be met with responses like, “We’re fine; we’ve got a guy.” This is the first sign of trouble for MSPs trying to establish themselves in a competitive landscape.
  2. Difficulty Unseating Incumbent Providers: Convincing clients to switch from a known provider to an unknown one can be a tough sell. Clients often view this as a risky move, making it hard for MSPs to make inroads.
  3. Rising Competition: The MSP market is booming, and competition is fierce. Local competition has gone national, and new players keep undercutting prices.
  4. Fee Resistance and Commoditization: MSP services are often seen as commodities, leading clients to resist paying premium prices.
  5. Sales Objections and Long Sales Cycles: Overcoming objections and navigating lengthy sales cycles can be exhausting.

All these problems have one common root cause: a lack of authority positioning. When MSPs present themselves as generalists, they blend in with the crowd, making it difficult to gain trust and authority in the eyes of potential clients.

The Power Of Specialization And Authority

In any profession, generalists are typically the lowest-paid. In contrast, specialists and authorities command higher trust and power in their respective fields. Furthermore, if one can attain celebrity authority status, they can achieve the pinnacle of trust and influence.

Becoming a celebrity authority transforms the dynamics of power in sales. Clients start to seek you out, follow your advice diligently, and willingly part with their money. This shift in power dynamics is what selling is all about – and clients are acutely aware of the power they hold during the sales process.

Appearing as just another salesperson for a generalist company is the least powerful position to be in. It diminishes your ability to influence and persuade potential clients.

The Wisdom Of Dr. Nido Qubein

A poignant insight from Dr. Nido Qubein: “The easier it is to replicate what you do, the less you get paid to do it.” In other words, the more unique and specialized your services are, the more valuable they become in the eyes of your clients.

In the fiercely competitive realm of MSPs, achieving success hinges on your ability to establish authority positioning. By progressing from a generalist to a specialist and, ideally, attaining celebrity authority status, MSPs can unlock the trust and influence needed to excel in their field. In essence, the more distinct and specialized your services become, the greater their perceived value in the eyes of your clients.

Find out how 7 MSPs and IT service businesses were able to add new and better clients, add new MRR, and finally have the freedom of a secure business