How to sell managed services to SMBs

Some of the pain points of small and medium businesses have to do with how to rein in IT-related expenditures, including staff-related costs—and a shortage of tech professionals, according to Anurag Agrawal, the chief analyst at consultancy Techaisle.

“This combination of increased reliance on technology as a key driver of business success, burgeoning complexity, and cost constraint has created a ‘perfect storm’ for the use of managed services,” Agrawal writes.

Managed services started as a means for managing print-related costs and technologies. But they’ve evolved into a full ecosystem that allows SMB managed services providers to share scarce IT resources across multiple locations. These offerings now include cloud services, mobile device management, storage, and security.

As demand grows, learning the managed services sales process becomes crucial, especially because SMBs are projected to spend $1 trillion globally by 2028, SMBs worldwide are expected to spend $1 trillion in 2028, growing at a faster rate than the enterprise segment, according to Techaisle. This comes from the need to constantly innovate and, yes, keep the lights on. Forty percent of midmarket firms and 15% of small businesses are carving out budgets specifically for technology-driven innovation, the firm says.

“Managed services address real and compelling issues and will continue to expand within the SMB community,” Agrawal says.

This expanding opportunity makes selling IT managed services an attractive business strategy- if you know how to engage buyers the right way. Below is a practical guide on how to approach selling MSP offerings effectively and deliver the best managed IT services for SMB markets that are hungry for support.

Always be helpful

It is tempting to focus on revenue, but the real power move in selling IT managed services is leading with value. Position your SMB managed services solutions around solving pain points rather than pushing contracts. This shift builds trust and aligns your pitch with what buyers actually care about.

Before meeting a prospect, research their industry, business size, structure, and challenges. The more you speak their language, the easier it becomes to show that your company offers the best managed IT services for SMB needs- not a generic solution.

Be transparent in setting expectations

Clear expectations are the backbone of any effective managed services sales process. Be upfront about what you deliver, what you don’t, and what level of service the client should expect. Prospects want MSPs that stay current with technology, so be ready to discuss your investment in tools and upgrades. Failing to deliver everything you promised is one of the fastest ways to lose credibility in selling MSP services.

Address the customers’ pain points

Focus on the customer in all your interactions with prospects. Show in concrete ways how you can help. For example, if storage is a problem, let them know you have a cloud storage service that can alleviate that while reducing their costs. Or, if they have experienced outages, find out how they have addressed them.

If it’s time for a follow-up, avoid generic “checking in” messages. Instead, remind them how your service can save them money and reduce headaches. This solution-focused approach matters when selling IT managed services, because SMBs want to see the business impact, not the technical specifics.

Develop a strong marketing campaign

Demand for MSP services is growing, especially since the pandemic began, so you should be capitalizing on that. Your campaign should focus on the specific services you provide and how you can maximize a company’s ROI. Incorporating messaging that shows the practical benefits of IT managed services for SMB can give you a competitive advantage during the early research stage.

Make sure your marketing campaign casts a wide net and includes emails, Google Ads, and SEO to reach your desired audience. SMB-focused content can highlight how SMB managed services simplify IT and reduce operational risks.

Educate your prospects

Often, you will encounter small and medium businesses that do not have a background in technology. They may not understand why technology and MSP services should be a part of their annual budget. It is important to educate them without using technical jargon. Be patient and take the time to explain why something like a hurricane is not just a natural disaster — but can also wreak havoc on their business continuity. A company won’t buy a service its leaders do not understand.

What are the examples of MSP services?

Managed Service Providers (MSPs) offer a wide range of IT services to help businesses stay secure, efficient, and productive. These services can include day-to-day IT support, system monitoring, and long-term technology planning. Here are some common examples:

1. Core IT and infrastructure services

• Network and server monitoring: Keeping an eye on systems to spot and fix issues before they cause downtime.

• Help desk support: Offering remote assistance for everyday IT problems.

• Endpoint management: Managing and securing devices like laptops, desktops, and mobile devices.

• Patch management: Regularly updating software to close security gaps and improve performance.

2. Security and data protection services

• Cybersecurity: Protecting against online threats using tools like firewalls and anti-malware systems.

• Data backup and disaster recovery: Ensuring important data is safely backed up and can be restored quickly after a loss.

• Cloud services: Managing cloud platforms, migrations, and tools such as Microsoft 365.

3. Strategic and specialized services

• IT consulting: Offering expert advice to align technology with business goals.

• IT staff augmentation: Providing additional skilled IT professionals when needed.

• Managed applications: Maintaining and supporting key business software.

• Database management: Ensuring databases run efficiently and securely.

• Communication services: Handling systems like VoIP for business communication.

• Managed print services: Managing printers, supplies, and print-related costs.

In short, MSPs handle everything from everyday tech support to advanced cybersecurity and cloud management, allowing businesses to focus on growth while their IT runs smoothly.

Related reading : psa software for small business

What are the benefits of selling managed services?

Selling managed services can bring significant advantages to businesses, both in terms of revenue and client relationships. Here are the key benefits:

1. Predictable and recurring revenue: Managed services are usually offered on a subscription or contract basis, which provides a steady, predictable income stream rather than one-time project fees.

2. Stronger client relationships: By managing a client’s IT environment continuously, you become a trusted partner rather than just a vendor. This long-term engagement strengthens loyalty and opens opportunities for additional services.

3. Proactive problem solving: MSPs monitor systems constantly, identifying and fixing issues before they become major problems. This reduces downtime and builds client trust in your reliability.

4. Competitive differentiation: Offering managed services sets your business apart from companies that only provide reactive, break-fix support, positioning you as a strategic IT partner.

5. Upselling and cross-selling opportunities: Ongoing relationships with clients make it easier to introduce additional services like cybersecurity, cloud solutions, or specialized IT consulting.

6. Improved efficiency and scalability: Managed services allow businesses to handle IT more efficiently, helping clients scale without needing to hire a large in-house IT team.

What are the challenges related to selling managed services?

While selling managed services offers many benefits, it also comes with some challenges that businesses need to consider:

1. Shifting client mindset: Some clients are used to paying for one-time projects or break-fix support. Convincing them to move to a subscription-based managed services model can be difficult.

2. Initial setup and investment: Setting up managed services requires investing in tools, training, and processes. This can be costly and time-consuming before recurring revenue begins.

3. Managing client expectations: Clients may expect instant results or unlimited support. Clearly defining service levels and boundaries is essential to avoid misunderstandings.

4. Ongoing monitoring and maintenance: Providing managed services means constantly monitoring systems and maintaining infrastructure, which requires consistent effort and expertise.

5. Pricing and profitability: Determining the right pricing model can be tricky. You need to balance affordability for clients with profitability for your business.

6. Competition: The managed services market is growing, which means more competitors. Standing out requires strong branding, clear service offerings, and proven results.

Frequently asked questions

What are managed services, and why should SMBs consider them?

Managed services are outsourced IT services that handle tasks like cybersecurity, network monitoring, and data backup. SMBs should consider them because they provide expert support, reduce downtime, improve security, and allow small businesses to focus on growth without the cost and hassle of a full in-house IT team.

How do I identify which SMBs are most likely to benefit from managed services?

Look for SMBs that rely heavily on technology, have limited internal IT staff, or experience frequent system issues. Businesses with growing IT needs, regulatory requirements, or remote employees can also benefit. These organizations often struggle with downtime, security gaps, or software management, making them ideal candidates for managed services.

What is the most effective way to communicate the value of managed services to SMB owners? 

Focus on benefits SMB owners care about, like cost savings, reduced downtime, stronger security, and predictable support. Use clear examples of how managed services prevent problems before they occur and free up their team to focus on core business activities, showing tangible ROI rather than technical jargon.

Which pricing models work best for selling managed services to SMBs? 

Subscription-based or fixed monthly pricing is often most effective for SMBs because it’s predictable and easy to budget. Tiered plans based on services or user/device count also work well, letting businesses choose the level of support they need while scaling up as they grow.

How can I handle objections or concerns SMBs might have about outsourcing IT or managed services? 

Listen carefully to concerns, such as loss of control or cost. Explain how managed services improve security, reliability, and efficiency while keeping them in control. Provide examples, case studies, or trial periods to build trust, and show that outsourcing is a partnership, not a replacement of their team.