Fixing Outsourced Lead Generation for MSPs
When your managed IT services business has hit a plateau at or near $2 million in annual revenue, it can feel like you're working twice as hard for half as much.
And that can be infuriating - why does it happen? And why is it so common? If you talk to your peers at any industry event, many will share your frustration.
For technical founders who have enjoyed their no-outbound approach to growth via referrals, it can be even more confounding - but we see it every day.
If you haven't hit the wall yet, congratulations! Do not make the mistake of thinking that the wall isn't waiting for you.
Referrals will not be enough to sustain your growth if your growth goal is higher than 2M.
You're not the only MSP owner that has been frustrated by stagnation. Of the approximately 50,000 MSPs in North America, under 8000 have reached that 2M milestone.
What do you do when you can't move the needle?
When MSP Growth Stalls, Outsourced Lead Generation Seems Like a Viable Option
Often MSPs that were reliably relying on referrals see a decline in passive referrals from clients at around that 2M mark. Maybe you're dealing with client attrition. Sometimes that loss doesn't even reflect a service issue: it can happen when private equity rolls through an industry in your city.
Sometimes it IS related to service delivery - you lose a critical member of your help desk, or the addition of a large client took more time and resources than anticipated and some other smaller clients stopped feeling appreciated.
Getting past 1M in revenue is a big milestone. Getting to two, even more of a victory. But the promised land is five - that's where exit multiples become life and legacy changing for MSP entrepreneurs.
When growth in your MSP business has stalled, the idea of engaging a firm that specializes in outsourced lead generation for MSPs starts to look like a viable way to fix that problem.
But adding one MSP sales tactic without considering your overall MSP sales strategy can damage your MSP in ways that stunt your growth for longer.
There are no silver bullets when it comes to scalable sales systems - for MSPs or any other business.
"You have to plan the work before you can work the plan." -Ian Richardson, Fox & Crow Group
How Outsourced Lead Generation for MSPs is Damaging MSP Sales Pipelines
We recently spoke with an MSP owner who had been shelling out $2,000 per month to a lead generation company.
In one year, they have closed one deal—a low-value, break-fix client.
Meetings dropped from four a month to one. Worse, they discovered the agency was using fake names on calls, damaging trust before the first conversation even happened.
This isn’t an isolated story.
It’s what happens when you outsource one of the most important functions of your business without a strategy or oversight.
Outsourced MSP Lead Generation Takes Longer and Costs More
Let’s be blunt: outsourced lead generation for MSPs is broken. And Carrie would know - she's helped over 1000 MSPs with outsourced lead generation in the past ten years.
Does outbound work for MSPs?
Yes. Done correctly and consistently, outbound pays off - to the tune of over 1000% ROI in 18 months.
However, done poorly, or done for a short period of time, outbound can damage your brand quickly.
Can outsourced outbound for MSPs work?
Yes.
Sometimes.
If you get a good rep, and they don't leave, get promoted or take any time off.
MSP Lead generation agencies are staffed with revolving doors of inexperienced, entry level outbound agents - maybe from the US, maybe not.
For every agent that stays over 90 days, your lead generation agency has to hire three agents.
When your agent doesn't show up at work, you may get calls. You may get a brand new, inexperienced agent. What you won't get is skilled outbound executed by a professional that you can manage and coach for success.
One thing is certain: the person who sold you on the idea of that outsourced lead generation contract is not the person who will be working on YOUR campaign.
Don't assume that the agents assigned to your MSP sales appointment setting program are anywhere near as well trained as the one that just convinced you to sign that three year contract.
The Real Cost of Outsourced Lead Generation for MSPs
Let’s break it down:
Low-quality meetings waste your team’s time.
Vague or deceptive outreach damages your brand.
CRM bloat from unqualified leads skews your pipeline.
Lack of transparency leaves you flying blind.
Your lead generation firm has no incentive to perform - you assume 100% of the risk.
You might be paying for activity, but what you need is revenue-generating sales motion. If your outsourced provider isn’t delivering that, you’re not just wasting money—you’re stalling your growth.
By not learning how to execute on a vital business skill you're ensuring a cold pipeline and no ability to grow one when you terminate your MSP lead generation agency relationship. It could be years before your pipeline bounces back.
Want to Hit $3M, $5M, or $7M in Revenue? You’ll Need a Strategy First
The MSP we spoke with has aggressive goals: $3 million in 2025, $5 million in 2026, $7 million in 2027.
When we asked how they were going to hit those numbers, the answer was vague: “more leads.”
More leads won’t save you if you don’t know who your ideal client is, you’re not focused on any specific verticals, your team isn’t trained in consistent discovery or follow-up, and you’re not tracking rep behavior tied to revenue outcomes.
That’s not a lead generation issue. That’s a sales infrastructure failure.
What to Do Instead of Outsourcing Your Sales Blindly
Here’s what we advised—and what any MSP serious about scaling should consider.
Take lead generation in-house.
Control the message, the list, and the outcomes.
No more shady caller aliases.
No more guessing what was said on the call.
Target specific niches.
Focus your list-building and outreach on industries that need you—like compliance-heavy sectors.
Generic outreach doesn’t convert.
Leverage industry associations.
Build smarter lists by sourcing from industry-specific directories and trade groups.
It’s faster and more accurate than rented databases.
Implement a sales-centric CRM.
Tools like Membrain allow you to coach, track, and optimize around process.
Get a sales assessment that actually diagnoses the problem.
At Fox & Crow Group, our sales assessment isn’t fluff.
We spend a month with your leadership and sales team to audit processes, uncover blockers, and create an execution roadmap that aligns with your revenue goals.
Then we'll recommend a strategy that is unique to your MSP.
No cookie-cutter "one size fits all" systems - we're going to recommend you build your missing pieces in-house, and then we'll help you build and execute on your own MSP growth plan.
From giving you a plan, to supporting you through that plan, we can give you as much help and guidance as you need to scale your MSP. You can also choose to DIY it with the help of our sales growth platform.
Outsourced Lead Generation for MSPs Isn’t the Problem—Your Sales Engine Is
You can’t outsource your way out of a broken system.
The real issue isn’t the lack of leads—it’s the lack of clarity on what happens next.
Do you know what your reps are doing with those leads?
Are you tracking conversion rates from first touch to booked meeting to closed deal?
Can you coach based on actual performance, not gut feel?
If not, it’s time to build a real sales operation. One that scales. One that works.
Explore how we are helping MSPs grow - check out some of the case studies here:
Ready to ditch the dead leads and build a sales engine that actually drives growth?
Let’s talk about a Sales Assessment
