Many MSPs are not able to well define their target segments. The result can be a huge sales effort with disappointing sales closes. There are three main differentiating factors we could use to fine tune service directed toward the different segments:

• Industry, verticality
• Seats
• Complexity

IT managed services providers could divide their market among three segments described below to benefit from more focused communication and delivery strategies.

The 3 minute video discusses the segmentation based on seats and complexity.

I’ve been talking with a fellow MSP entrepreneur recently about sales. He’s been suffering the inability to find the right someone for MSP contract sales, so he or the other directors are saddled with the sales work.

This is actually the usual situation among IT managed services providers... I see it all the time. The directors, CEOs and company presidents, are doing the sales for MSP services and neglecting their bailiwicks...developing the business.

The problem however is not HR, but the nature of the operation. Usually, when you find yourself unable to hire someone, and the high level staff are stuck doing it, you only see that symptom and not the root cause. In this case, the operational problem is causing the HR problem. The process is so complex that it narrows your field of potential hires. Only those with the most experience can manage it, and those people are most needed in other roles.