You’ve probably heard the phrase “marketing funnel” tossed around in webinars, podcasts, or at channel events. But if you're like many small to midsize MSPs, the concept can feel more confusing than helpful—especially when you’re juggling service tickets, cold calls, proposals, and client fires.

Here’s the good news: understanding the basics of a marketing funnel can help you get more mileage out of your marketing efforts, even if you don’t have a dedicated marketing team. This post will walk you through what a funnel actually is, how it works, and how you can use it to consistently turn cold leads into paying clients.

What Is a Marketing Funnel?

Think of a funnel as a visual way to represent how a stranger becomes a customer. At the top, you’ve got lots of people who may just barely be aware of your company. By the time they reach the bottom, they’ve seen enough value to make a deeper commitment of their time or money—whether that’s booking a call, requesting an onsite appointment, or reaching out to you with an active (read: emergency!) need. This is when they officially transition from the marketing funnel to the sales funnel and your sales hunters take the baton from here.

At each stage of the marketing funnel, your job is to move prospects closer to trust, understanding, and action. That means giving them the right content at the right time.

Lead Acquisition vs. Conversion: What’s the Difference?

Before we go further, let’s clear up two terms that often get mixed up:

• Acquisition is about capturing attention and contact info. This could be someone filling out a contact form, downloading a free resource, or signing up for a webinar. You’ve got their info—but they’re not a client yet.
• Conversion is when that lead takes a significant next step—like booking a sales call, requesting a demo, or signing a managed services agreement. In other words, this is the hand-off to sales or the point at which their action converts to dollars.

Understanding the difference helps you focus your efforts: not every piece of marketing has to convert into a sales opportunity. Some are just there to capture their contact information, to educate them, or build trust.

The Three Stages of the Funnel

Let’s break down the funnel into its three key stages, and what type of content fits where:

1. TOFU (Top of Funnel) – Awareness

This is where you cast a wide net. People here are just realizing they have a problem—or maybe they don’t even know it yet. They’re looking for ideas and information. But first, they have to know you exist.

Content and engagement examples:

• SEO
• Blog posts
• Social media posts and paid ads
• Educational videos
• Infographics
• Light, engaging LinkedIn content
• Cold list re-engagement campaigns
• Sponsoring an event
• Being a featured guest on a podcast

Goal: Help potential clients find you and show them that you understand their world.

How to know if your TOFU is working:

It’s a numbers game: Track the number of unique visitors to your website, the number of business cards you’re able to collect at sponsored events, the total engagement on your social media posts, the click-through-rate (CTR) on your emails, etc. This will give you an idea of how well people are finding you.

2. MOFU (Middle of Funnel) – Consideration

Now they’re digging deeper, looking into solutions, getting to know you more. They know they need help—but they’re not sure who to trust. They’ve likely already opted into your email list and are looking for more substantial content to help them make a decision. And their actions are showing you more about who they are too.

Content examples:

• Case studies
• Free resources or downloads (eBooks, solution briefs, checklists, white papers)
• Webinars or “Lunch & Learns”
• Interactive content (quizzes, assessments, calculators)
• Email nurture sequences (a.k.a. drip campaigns or journeys)

Goal: Build trust, demonstrate expertise, and begin positioning yourself as the solution.

How to know if your MOFU is working:

Again, numbers matter. But this is where things start to get more interesting. Track the number of resource downloads, attendance at your events, and the total engagement at the end of your email nurture sequences. But also, pay attention to the more nuanced details. What types of links are they clicking on? What do their responses tell you?

3. BOFU (Bottom of Funnel) – Decision

These folks are nearly ready to buy. Your job is to help them say yes. Once a prospect has reached the bottom of the funnel, time is of the essence. They’re called hot leads for a reason—it’s time to strike.

Content examples:

• Free consultations or assessments
• “Why Us” videos
• Testimonials and reviews
• ROI calculators
• Personalized outreach
• Product demos or free trials
• Client engagement email campaigns (because the first close is never the last)

Goal: Make it easy and obvious to choose you.

How to know if your BOFU is working: 

Oftentimes, these leads will make themselves known without much handholding. They’ll book a call with your sales team themselves. But you still need to monitor the effectiveness of this part of your funnel. If you see a hot lead that has suddenly transitioned from clicking informational content to clicking testimonials and your “book a call” link, but hasn’t committed yet, it’s time to get your sales team on the horn.

Why MSPs Should Care About Marketing Funnels

Most MSPs rely on referrals or word of mouth—And while it’s true that in terms of building trust, this is marketing gold that you simply can’t buy, it can also be very limiting. Sooner or later, the referrals reduce to a trickle. A basic marketing funnel gives you a predictable way to attract and nurture leads, so you're not stuck waiting for the phone to ring. Even better, with a steady stream of leads in your funnel, you get to pick the work that you want—rather than settling for the work you can get.

Here’s what even a simple funnel can do for you:

• Help you find and prioritize leads who are actually ready to talk
• Prevent you from scaring off cold prospects with premature sales pitches
• Make your marketing dollars stretch further by targeting the right message at the right time.

A casual site visitor isn’t ready to book an appointment, and SEO alone isn’t going to convert a hot prospect. But when you leave the right breadcrumbs in the right places, you show them the way.

Final Thoughts

You don’t need a massive budget or a full-time marketing team to build a simple funnel. Start by thinking through your current outreach—what stage of the funnel does it serve? Where are the gaps?

By understanding how a funnel works, you’ll stop treating every lead the same—and start building a smoother, smarter path from “never heard of you” to “where do I sign?”

Need help figuring out where your funnel leaks are? We love helping.

Ready to Build a Funnel That Actually Converts?

Join us for our Sales & Marketing Automation Workshop, hosted in partnership with GlassHive and Microsoft. This one-of-a-kind event is designed specifically for MSPs who are ready to take control of their lead generation and close more deals—with less guesswork.

Experts Brandi Rogers and Gio Sanguily walk you through the implementation step-by-step. Come ready to roll up your sleeves. Walk away with leads already pumping through your funnel.

Reserve your spot now – space is limited!