STATE OF THE INDUSTRY CONT .
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Our goal is no-surprises on the billing because there isn ’ t a faster way to make a client feel like you are taking advantage than to mess with their checking account . – Mike Bazar
retention even harder . On top of that , there is increased scrutiny on MSPs , particularly as cybersecurity threats grow , and state and federal regulations loom .
One way to level the playing field and gain a competitive advantage is to make your ethical stance part of the customer conversation . But what does it really mean to run an ethical MSP ? Here ’ s how some top MSP business owners set ethical standards .
What Does “ Ethical ” Mean For MSPs ?
Mike Bazar , who merged his MSP with Atlanta-based Vector Choice and is co-owner of the business , says there are two ways of viewing “ ethical ” practices .
“ The first , and easiest ,” he says , “ is the typical definition of ‘ ethical .’ Do we hold ourselves to moral and good standards in how we operate ? Do we bill correctly , quote correctly , deal with clients and employees fairly ?”
A second and more complex component is how you convey what you ’ re delivering — and the value , Bazar says . “ I often run into well-meaning MSPs that sell very basic cyber solutions to clients ,” he notes . “ The odds of those clients being hacked , shut down , fined , or otherwise have something bad happen to the business from hackers or the government [ noncompliance with laws ] are much higher .” While he doesn ’ t believe all of those MSPs are intentionally unethical , “ their indifference to creating a complete and robust offering could be considered negligent .”
Vector Choice has established its own core set of ethics that all staff members must understand and adhere to . “ In addition ,” says Bazar , “ we have a zero-tolerance policy to people being unethical . We understand that mistakes will happen , but if people , clients , or employees are treated in an unethical manner , we won ’ t tolerate that .”
Transparency In Your Services
If an MSP withholds vital information from a client , nickels-and-dimes with hidden fees , or fails to deliver on promised services , it erodes trust and gives all MSPs a bad name . Ethical MSPs are transparent in three key areas :
1 . Deliver What You Promise
Mark Adair , president and CEO of Owasso , Oklahomabased Adair Technology , says even well-meaning MSPs can easily drift into unethical practices , particularly when recurring revenue is involved . “ If you ’ re taking someone ’ s money , are you delivering on the value that you agreed upon ?” he asks . Adair recommends proactive communication and clear checkpoints to ensure clients understand what they ’ re paying for — and whether it ’ s being delivered .
2 . The Importance Of “ No Surprise Billing ”
Bazar says transparency around pricing is critical to client trust . “ I often go into sales meetings with prospective buyers where the biggest complaint is , ‘ We don ’ t know what the next bill is going to be .’” That ’ s because their current MSP sold them a “ cheap ” solution and then tacked on fees for various services . “ The client feels taken advantage of , and that ’ s what we want to avoid ,” Bazar says .
Bazar ’ s ethical practice includes getting pre-approval for any additional charges . “ And typically , the only thing we are charging for [ are ] projects that are out of scope of labor on a package that we clearly explain doesn ’ t include certain types of labor . Our goal is no surprises on the billing because there isn ’ t a faster way to make a client feel like you are taking advantage than to mess with their checking account .”
3 . Allow Clients To Own And Control Their Data
Neal Juern , CEO of San Antonio , Texas-based 7tech , has observed that some unethical MSPs hold a client ’ s data hostage when they want to leave by charging a hefty off-boarding fee , plus a project fee to transfer crucial information . Other unethical MSPs selectively withhold data throughout the entire relationship to extract unnecessary fees and make customers overly reliant on the MSP , adds Tommy Thornton , CEO of National City , California-based Automates .
Responsible Sales Practices
Sales are important , but trying to sell anything for a quick buck , rather than what the client needs , can tarnish an MSP ’ s reputation . Tim Conard , president at TS Conard , Inc . Technology Solutions in St . Joseph , Missouri , says unethical sales tactics are unfortunately not rare . “ I ’ ve been in events where the salesperson openly talked about , ‘ I ’ ll tell them anything . I ’ ll lie my [ butt ] off to get them to sign an agreement .’”
In contrast , ethical MSPs focus on building long-term relationships . Conard advocates for treating every client interaction — whether they ’ re signing up or leaving — as a partnership .
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