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Category: MSPX Blog

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Layoffs Causing Uptick in MSP Demand: What to Expect

Layoffs Causing Uptick in MSP Demand: What to Expect In 2023, U.S. layoffs were 98% higher than those of 2022. Amidst this tumultuous climate for employment, Managed Service Providers (MSPs) are witnessing a significant surge in demand as corporations streamline operations and reduce headcount. This uptick is underscored by the strategic realignment towards cost-efficiency, driving […]

12 Questions to Ask When Buying an MSP Contract

12 Great Questions to Ask When Engaging in A Contract Purchase   When buying an MSP (Managed Service Provider) contract, it’s crucial to ask the seller a series of questions to ensure that you have a clear understanding of the services being provided, the terms of the contract, and the overall fit for your business […]

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, […]

Building Strength Through MSP Community

More and More MSPs Will Find Strength in Community: Building a Cooperative Ecosystem Has the competitive landscape obscured the benefits of collaboration? In the world of Managed Service Providers (MSPs), embracing partnership can yield immeasurable advantages, transcending mere rivalry through shared ambitions and synergies.   Collaboration is the key.   Through strategic alliances, MSPs unlock […]

Key Tips for Buying MSP Contracts: A Comprehensive Guide

Key Tips for Buying MSP Contracts: A Comprehensive Guide Once upon a time, a wise person said, “The devil is in the details.” As you venture into the world of Managed Service Providers (MSPs), that adage becomes particularly pertinent. Neglecting the minute aspects of an MSP contract can lead to sub-optimal service delivery and unanticipated […]

The Ultimate Guide to MSP Contracts

Unlocking the True Value of Your MSP through Robust Contracts While the technical prowess of your staff and the efficiency of your tools may draw clients to your MSP, the real value often lies in a less conspicuous element: your contracts. Investors and finance professionals prioritize the long-term financial commitments embedded in MSP contracts, recognizing […]

Why Should I Sell My Managed Services Contracts and Not Just “Fire” the Client?

As a Managed Services Provider (MSP), you may find yourself in situations where you need to terminate a client relationship. However, before you make the decision to “fire” a client, consider the benefits of selling your managed services contracts to another MSP. By selling your contracts, you can retain the ongoing business of clients while […]

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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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