Tom recently joined Josh Peterson and Alexander Caplan on The BMK Vision Podcast for a practical discussion about what MSP owners should consider when a client stops paying.
The conversation covered contract structure, staged agreements, termination fees, out-of-scope work, annual rate increases, and the importance of treating payment plans as formal financial obligations rather than informal promises.
A central theme of the discussion was that what gets tolerated gets encouraged. For MSPs, consistently enforcing payment expectations can help prevent small issues from becoming larger collection problems.
Tom also emphasized that a strong client agreement should do more than provide legal protection. It should support the sales process, protect margins, establish clear expectations, and provide a defined path forward when a client fails to perform.
Watch the full BMK Vision Podcast episode to hear the complete conversation:
Key Takeaways for MSP Owners
The conversation highlighted several practical principles for MSP owners:
- Address payment expectations before there is a problem.
- Enforce the terms you establish consistently.
- Make sure your contracts support the way you actually run the business.
- Define out-of-scope work clearly and avoid allowing exceptions to become expectations.
- Build annual pricing adjustments into your planning.
- Use clear termination provisions and understand how they affect the client relationship.
- Treat payment plans as formal financial arrangements rather than informal promises.
The common thread is discipline. The strongest agreement in the world provides limited value if the business repeatedly chooses not to follow it.
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