The MSP Death Spiral

Does your MSP not make enough money to do any marketing? You might be in the business “death spiral”.

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Transcription:

Bryce Whitty here from Technibble.com, and in this video I’d like to talk about the cost-cutting death spiral that I often see with struggling computer businesses.

So, something I often hear is “I can’t afford to advertise” and the people who say this are already in the middle of the death spiral already.

Basically what happens is business owners see a slump in sales, either because word-of-mouth or referrals dried up, or they stopped advertising nearly a point.

A slump in sales results in less money coming in. Which means less money to spend on advertiser. With less advertiser, it’ll result in less sales, which leaves less money for advertising. You can see how it goes on from there.

When you get into the MSP business, you need to ALWAYS be marketing, even when you are busy today. The reason why is because you aren’t marketing for business TODAY, you are getting the work for a month from now.

If you are stuck in the death spiral, you need to either spend or work your way out of it. If you have some money to spend and no time, you can pay for services. If you have no money but some time, you need to work your way out which takes discipline but luckily discipline is free.

Knowing that you are in the death spiral is key to getting out of it. So either spend or work your way out of it.