The Biggest Ways MSPs Burn Profits – Part 1

Last month, I was shopping online for some gifts to give to our Technology Marketing Toolkit Infusionsoft clients, and I stumbled upon a popular beverage container company that promoted nicely done, customized, “one-of-a-kind cool” products that I thought our clients would love. Great website, great product, easy form to fill out for more info on bulk orders, credit card in hand — done! Or so I thought …

I was wrong.

I had filled out their simple web form for more info on my order (big money for them!) and never got a response. Not one email. Not one phone call. Nothing.

Bulk orders are premium moneymakers for these businesses, so my form submission was an incredibly valuable lead. How much money do you think this trendy corporation spends on expensive marketing only to have it completely burned?

And it’s not just big corporations where leads get lost and slip through the cracks. It happens every day in MSP businesses too. We do an activity in our Rapid Implementation Workshops where attendees test each other’s websites, fill out forms, call the number on the homepage, etc. to see in real life how their peers’ leads are handled.

Want To Hear The Startling Truth That Makes My Marketing Soul Scream In Angst And Anger?

Between 20%–30% of the MSP attendees never got the lead. Whether the form was broken, the notification went to spam, the alert went to an old employee’s inbox, whatever — it doesn’t matter! The lead was completely lost and burned since the MSP never even knew about it.

How Many Leads Are You UNKNOWINGLY Burning Every Month?

The average MSP gets about six leads a month, so every lead you get is even more valuable than the hundreds or even thousands of leads a large drinkware corporation gets. It is absolutely critical that you are 1,000% positive that you (and someone else) are alerted for ALL leads and that you are using web technology that ensures that your lead isn’t disappearing into the ether.

If You Aren’t Using Web Forms That DIRECTLY Tie Into Your CRM, Then You Are Likely Burning Leads

All of the data you requested in the web form should be instantly and automatically entered into your CRM. This should not just be one email to someone’s inbox about a lead that opted in, leaving that someone to manually enter the lead’s info into your CRM. Your web form should connect to your CRM so that all opt-ins are automatically captured and can trigger next steps for follow-up.

Side note: In the November 2018 Marketing Strategy Brief, I wrote the entire Marketing Implementation Article on the five critical things that must happen as soon as a lead opts in, so refer to that if you need to know how to handle inbound leads.

The Numbers Don’t Lie

Let’s take a look at how these burned leads impact profits. As painful as it may be to see how it influences revenue, do not ignore this. Below are the average leads and sales from MSPs.

MSP Averages:

  • New Leads: 72 (six per month)
  • Appointments: 35 (48% of leads)
  • Proposals Generated: 24 (69% of appointments)
  • Closed Deals: 12 (50% of proposals)
  • Average First Year: $25,119.32
  • Total Annual Payout: $301,431.84

Based on our raw experience with hundreds of MSPs, we can assume that most MSPs are burning 20% of their leads because they never even knew about them. Let’s start with what it looks like from a profits standpoint if you were to stop burning 20% of the inbound leads in this article. (We’ll look at the rest in future articles.)

  • Increase Number Of Leads By 20% (Rounded)
  • New Leads: 86
  • Appointments: 41 (48%)
  • Proposals Generated: 28 (69%)
  • Closed Deals: 14 (50%)
  • Average First Year: $25,119.32
  • Total Annual Payout: $351,670.48

That’s an increase in $50,238.64 just by implementing a system and process to make sure your inbound leads aren’t burned! It is critical that you implement processes, management, and automation tools to plug these costly holes in your sales bucket.

We use Infusionsoft as our CRM/automation tool and recommend it to our MSP clients, too, since we can embed Infusionsoft web forms directly on our landing pages and websites, ensuring that the lead is immediately captured in our database, automatically put into a follow-up sequence of emails and phone calls, and always placed into our automated drip marketing.

If you want more info on Infusionsoft, then visit www.MSPMarketingCRM.com.

Stay tuned next month for when we take a look how MSPs are burning cash by failing to get to hot leads booked on their calendar. I’ll show you an easy and impressive way to instantly increase the number of leads booked on your calendar that ANYONE can implement — no CRM or automation tool needed!