List Building Hacks: How to Create Winning Prospect Lists for IT and MSP
June 2, 2025
Building a winning prospect list is like fishing with the right bait. For IT companies and MSPs, it’s crucial to have precise and effective lists for prospecting. Without them, you’re casting your line into an empty lake.
You need 10 qualified prospects to close 1 new client. At $5K average monthly client value, that’s $500 per qualified lead. How much are you really spending per qualified lead right now?
If you’re an MSP owner doing $500K-$5M annually, you know the struggle all too well. You need consistent new business growth, but prospecting eats up time you should be spending serving existing clients or actually running your business. You handle IT for companies who can’t afford an IT Manager but who’s handling marketing for your IT company that can’t afford a Marketing Manager?
The solution isn’t working harder on lead generation it’s working smarter with better prospect data and proven systems that actually work for the IT industry.
The Painful Reality of Buying Lists (And Why Most MSPs Do It Wrong)
Most MSP owners buy lists from ZoomInfo, Seamless.ai, or similar platforms because it feels fast and easy. After all, you’ve got servers to manage, tickets to close, and clients demanding immediate attention. The last thing you want is to spend precious hours building prospect lists from scratch.
Here’s what actually happens when you rely on purchased lists:
The Data Quality Nightmare
ZoomInfo Data Quality Falls Short: People love to brag about their massive databases, but ZoomInfo data quality is notorious for being out of date. Buy a list and chances are you’ll get bounced emails, wrong phone numbers, and contacts who left the company months ago.
Seamless Data Quality Isn’t Much Better: Seamless.ai claims to provide fresh information, but the story isn’t much different. That “brand new” contact list has more holes than Swiss cheese, with outdated contacts, duplicate records, and compliance risks that could land you on email blacklists.
Real World Consequences of Bad Data
Here’s what happens when IT pros rely on poor quality purchased lists:
- Contact info is outdated: Three out of ten emails bounce back as invalid
- Decision makers are missing: That “CFO” contact left six months ago
- Low reply rates: Bad contacts lead to terrible engagement metrics
- Wasted resources: Teams spend hours cleaning lists, chasing dead leads, and apologizing to folks who aren’t decision makers
Real Example: One Wisconsin MSP owner told us: “We bought a ‘verified’ list for Milwaukee area prospects. Out of 500 contacts, over 150 bounced back as invalid. Another 100 were no longer with those companies, and one guy had retired to Florida five years ago.”
The Hidden Costs Add Up Fast
Time Investment: 5-8 hours weekly cleaning bad data
Your Hourly Value: $200-300/hour as an MSP owner
Opportunity Cost: $1,000-2,400 monthly in lost revenue
Plus: The actual cost of purchasing the lists
When you add it all up, “cheap” lists become very expensive very quickly. Every bad email address eats up time and money. Sales teams waste hours dialing numbers that go nowhere, marketing budgets shrink with every undelivered campaign, and opportunities for genuine connections slip through the cracks.
Introducing Waterfalling: A Superior Approach to List Building
When it comes to IT Prospect List Building or MSP Prospect List Building, the traditional method of buying a list from ZoomInfo, Seamless, or any other average provider simply isn’t profitable. What we need is something more accurate something like the Waterfalling strategy.
This approach doesn’t depend on data from just one source. Instead, it uses 20-50 sources of data (or even more) to create prospect lists that actually work for B2B technology companies.
What is Waterfalling?
Think of building a prospect list as making a layered Wisconsin cheese dip. Using just one type of cheese won’t be enough. The Waterfalling strategy combines different layers of high quality data from various sources, each improving and refining your list until you have something that’s both rich and satisfying.
Here’s how Waterfalling works:
- Multiple Layers: Instead of gathering one large batch of contacts, Waterfalling utilizes numerous data sources, each contributing new names, emails, LinkedIn profiles, firmographics, technographics, recent activity, and intent signals.
- Continuous Enrichment: No single source is always accurate. With Waterfalling, every record is verified and enhanced with better information from other sources.
- Real Time Validation: Data isn’t collected once and forgotten. Continuous cleaning keeps your list fresh and relevant.
- Avatar/ICP Enrichment: Every contact gets cross checked against your exact Ideal Customer Profile requirements no more wasted outreach to people who don’t fit.
Why Not Just Buy a List?
Buying a list is like fishing with an old worm: you might catch something, but chances are it’ll be disappointing and you’ll smell bad afterwards. The issue with purchased lists is that they only come from one source. If that source dries up or worse, has poor quality data you’ll waste time and money.
Waterfalling gathers contacts from various places. With 20-50 sources of data, your chances of getting accurate phone numbers and emails greatly increase dramatically.
Avatar/ICP Enrichment: Hitting the Bullseye Every Time
Having plenty of data is good. But having the right data? That’s where Waterfalling excels in B2B List Building for the IT industry.
Every IT company has an ideal customer profile (ICP). Think Avatar enrichment: You want companies in your service area with 20-100 users running Microsoft 365 who are dissatisfied with their current MSP because support tickets take too long to resolve, or they’re paying too much for basic services.
Waterfalling allows you to:
- Define your Avatar/ICP down to industry, location, tech stack, pain points, even recent hiring trends
- Cross-check every contact from all those data sources against your ICP requirements
- Ensure only prospects matching your exact criteria make it through, no more wasted outreach to people who don’t fit
This means you spend less time pursuing unqualified leads and more time talking to potential customers who actually need what you offer.
The Power of AI Enrichment in Modern List Building
Effective list building isn’t just about gathering names; it’s about ensuring the data is accurate and actionable. AI enrichment tools play a crucial role in achieving this level of precision that modern MSPs require.
Enhancing Accuracy with AI Enrichment Tools
AI enrichment tools provide up to date and relevant data, far surpassing traditional sources like ZoomInfo. These tools continuously scan and update information, ensuring your prospect lists are current and precise. For IT, MSP, & SaaS prospecting, having the freshest data means you’re reaching out to potential clients at the right time with the right information.
Advantages of Integrating AI in Waterfalling
AI driven enrichment tools bring several critical benefits to the Waterfalling process:
Improved Efficiency: By automating data collection and updating, AI saves countless hours of manual work, time you can spend serving clients or growing your business.
Scalability: As your MSP grows, AI can handle larger datasets without compromising accuracy, supporting your growth without adding overhead.
Enhanced Targeting: With precise data, you can tailor your outreach to match your Ideal Customer Profile better than ever before.
The Pitfalls of Inaccurate Intent Signals
Using stale intent signals for SMB IT prospect list building can lead to significant issues:
- Wasted Resources: Time and money spent on contacting prospects who have already moved on or made decisions
- Missed Opportunities: By the time intent signals are processed into a purchased list, the window of opportunity may have closed
- Low Engagement Rates: Outreach efforts fall flat when based on outdated information
The Bottom Line: Effective lists are built with Waterfalling, not bought from sources like ZoomInfo. The integration of AI enrichment tools ensures that your data stays fresh and relevant, making your marketing efforts more impactful.
Your Three Paths to Better Prospect Lists
Option 1: DIY with Clay.com
Investment: $149-800/month + your time
Time Commitment: 2-3 weeks to learn + 1-2 hours weekly maintenance
Best For: MSP owners who want full control and have time to invest in the learning curve
Clay.com provides access to multiple data sources and automation tools for building your own waterfalling system. It’s powerful, but requires a significant time investment to learn properly.
Reality Check: Do you have 2-3 weeks to become a data expert, or do you need leads flowing now?
Option 2: The Managed Prospecting System Approach
Investment: $2,000-5,000/month
Time Commitment: Zero hours from you
Best For: MSP owners who want results without the learning curve
At Managed Prospecting System (MPS), we’ve been where you are. As former MSP owners with 20+ years of IT marketing experience, we understand your challenges, your sales cycles, and what actually works in the IT industry.
Our integrated 3-pillar lead generation system combines:
- Content Marketing: Authority building content that positions you as the expert
- LinkedIn Outreach: Professional, relationship based prospecting
- Email Campaigns: Targeted, personalized email sequences
We use warm, authority based outreach, no expensive ads, no cold calling, just proven methods that work specifically for IT companies.
Option 3: Coaching & Done With You Programs
Investment: Custom pricing based on needs
Time Commitment: We handle setup, you manage ongoing activities
Best For: MSP owners who want to learn the system but need expert guidance
This hybrid approach gives you the knowledge and tools while having experts guide the implementation.
The ROI Math That Actually Matters to MSP Owners
Let’s talk real numbers, not fluff. Here’s the math that every MSP owner needs to understand:
Your Current Prospecting Reality
- Close Rate: ~35% (industry average for sales appointments)
- Leads Needed: ~10 qualified prospects per new client
- Average New Client Value: $2,000-10,000 monthly recurring revenue
- Break Even Math: Just 1 new client every 4-5 months pays for the investment
Managed Waterfalling Results
- Qualified Prospects Delivered: 5-15 monthly (people who fit your avatar and are scheduled for meetings)
- Expected New Clients: 1-3 monthly (based on 35% close rate)
- New Monthly Recurring Revenue: $14,000-140,000
- Investment: $2,000-5,000 monthly
- Payback Period: 1-2 months typically
The Critical Question: If we handed you 10 qualified sales opportunities this month (companies that fit your ideal client profile and want to meet), could you close 2-5 of them?
If yes, this investment pays for itself quickly. If no, you need sales training, not better leads.
What Makes a “Qualified Prospect” for MSPs?
Unlike generic lead generation, qualified prospects for MSPs have very specific characteristics:
Company Profile:
- Size: 25-100 employees (or your specific sweet spot)
- Technology Stack: Current systems you can improve, migrate, or replace
- Geographic Location: Within your service area
- Pain Points: Documented IT challenges, security concerns, or compliance needs
Contact Profile:
- Decision Maker: CEO, COO, operations director, business owner, or CFO
- Authority: Someone who can make or influence purchasing decisions
- Timing: Currently evaluating options or experiencing pain points
- Engagement: Agrees to a discovery meeting or consultation
This isn’t just a name and email address it’s a complete profile of someone who needs what you offer and is willing to discuss it.
Case Studies: Real Results from Real MSPs
Case Study #1: Northeast MSP Doubles Pipeline in 3 Months
A 7 employee MSP in New York had been buying ZoomInfo lists and facing the usual headaches:
- Contact info was outdated (30% email bounce rate)
- Decision makers were missing (contacts had changed jobs)
- Low reply rates from bad data
After switching to managed waterfalling:
- Month 1: 2 qualified prospects
- Month 2: 7 qualified prospects
- Month 3: 14 qualified prospects
- Result: Doubled their monthly lead generation goal within 3 months
More importantly, the quality improved dramatically. Instead of chasing contacts who’d changed jobs, they were talking to current decision makers actively looking for MSP services.
Addressing the “It’s Too Expensive” Mindset Head On
We get it. Spending $2,000-5,000 monthly feels like a big commitment when you’re used to thinking like a small business owner, even though you’re running a company doing $500K-$5M annually.
The Real Cost Comparison
Alternative 1: Hire a Full-Time Marketing Person
- Base salary: $65,000-90,000 annually
- Benefits and taxes: Additional 30-40%
- Training time: 3-6 months to productivity
- Total first year cost: $85,000-130,000
Alternative 2: Keep Doing It Yourself
- Time spent prospecting: 15-20 hours weekly
- Your hourly value: $200-300/hour
- Monthly opportunity cost: $15,000-$20,000
- Plus the stress and inconsistent results
Alternative 3: Keep Buying Cheap Lists
- List costs: $200-1,000 monthly
- Time cleaning bad data: 5-8 hours weekly
- Poor results and frustration: Priceless (in a bad way)
The Psychology Shift You Need to Make
Ask Yourself These Questions:
- How many $5K+ clients did you close last month?
- How much time did you spend prospecting vs. serving existing clients?
- What would happen to your business if you consistently added 2-3 new clients monthly?
- What’s the real cost of NOT having a predictable lead pipeline?
At your revenue level ($500K-$5M), you’re not a “small business” anymore, you’re a growing company that needs systems and processes that scale.
Why Growing MSPs Choose Professional Lead Generation
Time Back in Your Schedule
No more spending weekends cleaning contact lists or researching prospects. Focus on what you do best, running and growing your MSP, serving clients, and building your team.
Predictable Growth Engine
Instead of feast or famine lead generation, you get a consistent flow of qualified prospects monthly. This predictability allows you to plan hiring, capacity, and growth initiatives with confidence.
Professional Competitive Advantage
Your outreach becomes more targeted and personalized, setting you apart from competitors using generic approaches or spray and pray tactics.
Scalable Foundation
As your business grows, the lead generation scales with you without requiring more of your personal time or attention.
The MPS Difference: Former MSP Owners Who Get It
At Managed Prospecting System, we’re not just another marketing agency selling generic lead generation. We’re former MSP owners with 20+ years of IT marketing experience who’ve walked in your shoes.
We understand:
- The unique challenges of selling IT services
- Long sales cycles and complex decision making processes
- The importance of trust and authority in the IT space
- How to communicate technical value to non-technical decision makers
Our 3-Pillar System Works Because:
- Content: Establishes you as the trusted authority before prospects ever meet you
- LinkedIn: Professional, relationship based outreach that builds connections
- Email: Targeted, personalized sequences that drive meetings
Client Testimonial: “Jim has great aptitude for working through the details of my business. We created the right message to target my prospects. He is very knowledgeable about LinkedIn and helped me expand my business by finding new prospects.”
Getting Started: Which Path Is Right for Your MSP?
Choose DIY with Clay.com if:
- You have 2-3 weeks to invest in learning the platform
- You want full control over the prospecting process
- You enjoy the technical side of marketing and data management
- You have someone on your team who has these skills and can dedicate time to this
Choose MPS Done For You if:
- You want results starting immediately
- You’d rather invest money than time in prospecting
- You’re focused on growing your MSP, not becoming a data expert
- You want to work with people who understand the IT industry
Choose Coaching/Done With You if:
- You want to understand the system but need expert guidance
- You’re planning to eventually hire someone internally to handle this
- You want the knowledge transfer along with the results
- You have 10-20 hours a week to devote to marketing
Beyond Lists: Building a Complete Revenue Growth System
Effective lead generation for MSPs isn’t just about better prospect lists, it’s about building a complete system that turns prospects into clients predictably.
The Complete System Includes:
- List Building: Using waterfalling for accurate, targeted prospects
- Authority Building: Content that establishes expertise and trust
- Relationship Development: LinkedIn and email sequences that warm up prospects
- Meeting Setting: Proven approaches that get prospects to say yes to calls
- Discovery Process: Structured conversations that uncover needs and build value
The Technology Stack That Makes It All Work
Data Sources: 20-50 different providers for comprehensive coverage
AI Enrichment: Continuous updating and verification of contact information
Integration Options: Google Sheets, API connections to your CRM
Quality Control: Deduplication and verification processes
Compliance Management: CAN-SPAM compliance for US outreach
Tools We Recommend:
- Clay.com: For DIY waterfalling ($149-800/month)
- LinkedIn Sales Navigator: For professional prospecting
- Email automation platforms: For sequence management
- CRM integration: To track and manage the entire pipeline
The Bottom Line: Stop Fishing with Old Bait
Effective lead generation for MSPs isn’t about finding the cheapest list, it’s about finding the right prospects efficiently and consistently using proven methods designed specifically for the IT industry.
Whether you choose to build waterfalling capabilities internally with Clay.com or partner with experts who understand your business at Managed Prospecting System, the key is moving beyond single source data to a multi layered approach that delivers qualified prospects who actually convert.
Your Next Steps:
- Calculate your current cost per qualified lead
- Evaluate how much time you’re spending on prospecting weekly
- Decide which path fits your growth goals and available time
- Take action, your competitors already are
Stop wasting time on lists that don’t work. Start building prospect pipelines that fuel predictable growth.
Ready to see waterfalling in action for your MSP? Whether you want to learn the DIY approach or have experts handle everything for you, the choice is clear: better data leads to better results, and better results lead to business growth.
For MSP owners tired of feast or famine lead generation, it’s time to build a system that works as hard as you do.
Ready to explore how the Managed Prospecting System can transform your lead generation? Let’s discuss which approach fits your growth goals and gets you the consistent pipeline your MSP deserves.
FAQs (Frequently Asked Questions)
Why is buying prospect lists from providers like ZoomInfo or Seamless.ai often a bad strategy for MSPs?
Buying lists from providers such as ZoomInfo or Seamless.ai can lead to poor data quality, resulting in wasted time cleaning inaccurate contacts (5-8 hours weekly) and ineffective outreach. Many MSPs face real world consequences due to stale or incorrect data, making this approach costly and inefficient.
What is ‘Waterfalling’ and how does it improve IT and MSP prospect list building?
‘Waterfalling’ is a layered approach to building prospect lists, similar to making a layered Wisconsin cheese board. It combines multiple data sources and enrichment techniques to create highly accurate and targeted prospect lists, outperforming traditional list buying methods.
How does AI enrichment enhance the accuracy of MSP prospect lists?
AI enrichment tools provide up to date, relevant data by continuously validating and augmenting contact information. This leads to higher accuracy in identifying qualified prospects, enabling more personalized and effective outreach efforts for MSPs.
What are the three main paths MSPs can take to build better prospect lists, and what are their investments?
MSPs have three options: 1) DIY with Clay.com costing $149-$800/month plus 2-3 weeks of time investment; 2) Managed Prospecting System with $2,000-$5,000/month investment requiring zero hours commitment; 3) Coaching & Done With You programs with custom pricing based on needs and variable time commitment.
How do managed waterfalling services impact MSP lead generation results?
Managed waterfalling delivers 20-40 qualified prospects monthly who fit the ideal customer profile, significantly improving the quality of leads compared to generic lead generation. This method helps MSPs double their sales pipeline within months by focusing on high-conversion prospects.
Why should growing MSPs consider professional lead generation over in house marketing efforts?
Professional lead generation offers predictable growth engines, saves time by eliminating weekend data cleaning, provides scalable solutions as the business grows, and delivers a competitive advantage through targeted and personalized outreach that in house teams may struggle to match.
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