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Day: February 4, 2024

Understanding MSP Contract Valuation When Selling

Don’t Leave Money on The Table Are your contracts yielding their maximum potential value? Here’s an often-overlooked truth. Just as a prudent gardener prunes unproductive branches to stimulate growth, savvy business owners can extract value from seemingly static contractual engagements. Like the vine, there’s hidden value in existing business ties. When managed with strategic acumen, […]

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What are the contract "types"?

  • Standard MSP Contracts:
    • Definition: A standard Managed Service Provider (MSP) contract outlines the terms and conditions of the relationship between the MSP and its client. The specifics can vary based on the services offered, industry standards, and the unique needs of the parties involved.
  • White Label MSP Contracts:
    • Definition: In a white label MSP contract, the MSP provides its services to another company (the reseller or partner) who, in turn, sells those services under its own brand.
    • Ownership: The client perceives the reseller as the primary service provider, and the MSP works behind the scenes, usually transparent to the end client.
    • Branding: The services are “white-labeled,” meaning the reseller can apply its own branding, logos, and identity to the MSP’s services.
    • Responsibility: The reseller takes on the responsibility of customer interaction, support, and billing, while the MSP handles the technical aspects.
  •  Referral MSP Contracts:
    • Definition: In a referral MSP contract, a third party (the referrer) recommends the MSP’s services to potential clients but does not actively resell or white-label the services.
    • Ownership: The MSP retains ownership of the client relationship, and the referrer acts as an intermediary, earning a commission or referral fee for successful deals.
    • Branding: The MSP’s brand remains visible to the end client rather than the referrer’s brand.
    • Responsibility: The referrer’s involvement is primarily in referring clients, and the MSP handles the sales, support, and billing processes.
  • Reseller MSP Contracts:
    • Definition: In a reseller MSP contract, the reseller purchases services from the MSP at a discounted rate and resells them to their own customers under their brand.
    • Ownership: The reseller maintains a direct relationship with its customers, providing support and handling billing.
    • Branding: The reseller can choose to brand the services under its own name and may customize certain aspects of the service.
    • Responsibility: The reseller has a higher level of involvement in customer-facing activities compared to white labeling.

What do the contract status icons mean?

  • Active (green traffic light) – indicates that it is currently available for sale.
  • Pending (yellow traffic light) – indicates that an offer has been made and negotiations are in progress, but not yet finalized.
  • Sold (red traffic light) – indicates that the sale has been successfully completed, and ownership has transferred from the seller to the buyer.
  • Unpublished (purple traffic light) – indicates that the listing is not currently visible to the public.

Where are all the dang contracts??

For MSPX to effectively serve as a marketplace for the efficient transfer of managed services contracts, the active participation of the MSPX community is crucial. Listing contracts and other associated services for sale not only broadens the range of available contracts, but also creates a dynamic marketplace where buyers can find contracts that suit their specific needs.

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