Advanced MSP Marketing Vendor Management

Hiring the vendor is just the beginning. Managing that relationship to ensure continued performance and ROI is where the real work happens. Many MSPs find themselves in a "marketing honeymoon" phase that lasts 90 days, followed by a slow decline into mediocrity and eventual frustration.

To avoid this, you need a structured approach to vendor management that includes clear contract terms, rigorous performance tracking, and a plan for what to do when things go wrong. Marketing is a business function, and like any other function, it requires active oversight.

Going Deeper

Negotiating the Marketing Contract

A marketing contract should protect you as much as it protects the vendor. Pay close attention to these three areas:

1. Ownership of Assets. Ensure the contract explicitly states that you own all creative work, website code, and ad accounts. If the engagement ends, you must be able to take your "ball" and go home without paying a ransom.
2. Termination Clauses. Avoid long-term "lock-in" contracts. A 30 or 60-day notice period is standard. Be wary of any vendor that insists on a 12-month commitment without a performance-based exit clause.
3. Scope of Work (SOW). The SOW should be highly specific. "Social media management" is vague. "Three LinkedIn posts per week and daily monitoring of comments" is a commitment you can measure.

Example: "Big Sky Managed Services" in Bozeman fired their previous agency after six months of "green arrows" that resulted in zero SQLs. Because they had insisted on a contract that guaranteed ownership of all assets, they were able to move their website and ad accounts to a new partner in 48 hours without any downtime or data loss.

Measuring Vendor Performance Beyond the Dashboard

Vendors will often present you with dashboards full of "green arrows": increased impressions, higher click-through rates, and more followers. While these are good, they are "leading indicators," not the end goal.

To measure real performance, focus on the "Lagging Indicators" that actually impact your bottom line:

• Marketing Qualified Leads (MQLs). People who have shown interest and fit your ideal customer profile.
• Sales Qualified Leads (SQLs). People who are ready to have a discovery call.
• Cost Per Acquisition (CPA). How much are you spending to get one new client? This should decrease over time as the vendor sharpens their tactics.

When and How to Fire a Marketing Vendor

Firing a vendor is a difficult but sometimes necessary decision. You should consider parting ways if:

1. Communication has broken down. They take days to respond to simple emails or miss scheduled meetings.
2. Quality is consistently low. You find yourself rewriting their blog posts or correcting their ad copy every single time.
3. There is no clear path to ROI. After 6-9 months, if you haven't seen any movement in your primary metrics, the strategy isn't working.

When you do fire a vendor, do it professionally and according to the contract. Ensure you have all your login credentials and data exports before you send the termination notice. This prevents any "accidental" loss of access during the transition period.

Managing Multiple Specialized Vendors

If you're using a hybrid model with multiple specialized vendors (e.g., an SEO agency and a separate PPC agency), you must act as the "Integrator." These vendors often have competing priorities and may even blame each other for poor results.

Hold a monthly "All-Hands" marketing meeting where all vendors are present. This forces them to coordinate their efforts and ensures that everyone is working toward the same strategic goals. It also prevents you from having to repeat the same information multiple times.

In the next topic, we'll look at the common sales tactics used by marketing agencies so you can spot them before you sign the contract.

Related Lessons

• How to Hire an MSP Marketing Vendor (101)
• Recognizing Common MSP Marketing Sales Tactics (101)
• MSP Marketing Law and Compliance (101)