If you’re running an MSP and wondering why your lead flow has slowed to a trickle, it’s not just you. Across the board, we’ve seen a staggering 40% drop in inbound leads for MSPs from January to July this year. Add to that skyrocketing ad costs, and you’ve got a perfect storm that’s crippling your business. But let’s be clear—this isn’t a time to panic; it’s a time to act.
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I’ve been in this game for over 22 years, working with more than 10,000 MSPs and IT service companies to not only attract more leads but to secure high-value, right-fit clients. And let me tell you, what’s happening right now isn’t just another bump in the road. It’s a shift in the landscape, and you need to adjust your strategy fast, or you’ll get left in the dust.
What’s Causing This Lead Drought?
Two words: Election Year.
When an election is on the horizon, businesses tighten their belts. They freeze spending, delay decisions, and hold on to their wallets like their life depends on it. And who can blame them? The uncertainty of election outcomes makes people cautious. On top of that, political ad spending is blowing up the cost of digital ads. In 2020, $9 billion was spent on political advertising—up from $2.9 billion in 2016. This year, it’s expected to be 30% higher. That’s right, your carefully crafted ads are getting lost in the noise of political campaigns.
And let’s not forget the upcoming holidays. Thanksgiving and Christmas are just around the corner, which means ad costs are about to spike even more. If you’re still relying on the same old strategies, it’s time to wake up and adapt.
The Path Forward: Strategic Partnerships And The CAT Factor
So, what should you be doing right now? It’s time to get strategic.
Let me give you an example. I recently spoke with a highly successful MSP bringing in over $20 million a year, focused exclusively on the dental niche. They’re not scrambling to buy more ads. Instead, they’re leveraging strategic partnerships—aligning with companies that already have access to the clients they want, but aren’t direct competitors. They’re also doubling down on referrals and networking groups—the tried and true methods that cost a fraction of paid ads and yield high-quality leads.
But here’s the real secret sauce: The CAT Factor. That’s Celebrity, Authority, and Trust. When the market is uncertain and ad rates are through the roof, you can’t afford to just spray and pray. You need to build unshakable trust with your prospects and clients. This isn’t just about blasting out spam emails or throwing money at Facebook ads. It’s about positioning yourself as a trusted authority—a mini-celebrity in your niche.
MSP sales are trust-based sales. When people are hesitant to spend, they won’t part with their money unless they trust you implicitly. The MSPs who master this are the ones who see fee resistance drop and close deals while their competitors are left wondering what happened.
Don’t Just Survive—Thrive
The truth is, the challenges we’re facing aren’t going away anytime soon. Maybe we’ll see some relief next year, but that’s not a strategy—that’s wishful thinking. The time to act is now.
We’ve just released a new report, The Election Year MSP Market Forecast, that dives deep into the economic forces at play and how they’re impacting your profitability and growth. This isn’t just another fluffy white paper. It’s packed with actionable insights on what best-in-class MSPs are doing to combat this lead drought. We’re talking about trust-based marketing strategies that actually work in this chaotic environment.
