Agreements

Agreements

Every MSP Bills Differently. Your Agreement Engine Should Too.

After 25 years of operating and advising MSPs, we’ve seen every billing scenario imaginable. Shared tenants. Weighted user types. Agency consolidations. Provider invoices that don’t match what you’re actually charging. We built MSP Mesh Map around the reality that no two MSPs โ€” and no two customers โ€” bill the same way.

Flexible agreement structures that match how your business actually works โ€” not how a software vendor decided billing should work.

Billing Scenarios MSP Mesh Map Handles Natively

๐Ÿ“ฆ

License Passthrough

Pax8, Sherweb, or direct โ€” reconcile and bill any way you choose

๐Ÿงฉ

Custom Bundles

Consolidate multiple services into a single per-user line

โš–๏ธ

Weighted Users

Full users vs frontline workers โ€” different cost, different weight

๐Ÿข

Dept & Location Splits

Invoice per location, department, or cost center

๐Ÿ”—

Shared Tenants

One M365 tenant, two entities โ€” split billing handled correctly

๐Ÿ›๏ธ

Agency Billing

True per-user cost across all managed tenants for agencies

You Got the Invoice. Now What?

A big license invoice from Pax8, Sherweb, or your distributor lands every month. How you handle it depends on the customer โ€” and no two are the same.

๐Ÿ’ฑ Passthrough + Markup

Bill the customer exactly what you paid, plus a defined markup percentage. Simple, transparent, and easy to explain. Set a minimum markup floor so no license ever goes out at cost.

M365 Business Standard: $12.00 cost โ†’ $14.40 billed (20% markup)
Minimum markup: $2.00 per seat, regardless of license cost

๐Ÿท๏ธ MSRP Pricing

Bill at Microsoft’s published retail price regardless of what you paid. Your margin is the difference between what you charge and your provider cost โ€” which varies as you negotiate better rates over time.

M365 Business Premium MSRP: $22.00
Your Pax8 cost: $17.50  |  Margin: $4.50 per seat

๐Ÿ”ง Management Fee

Pass the license through at cost and charge a separate management fee on top โ€” per seat, per service, or flat. The customer sees what the license actually costs and what you charge to manage it.

M365 Business Standard: $12.00 (at cost)
M365 Management Fee: $3.00/user/mo
Total per user: $15.00

๐Ÿงฉ Bundled Per-User

Consolidate M365, MDR, email security, SaaS backup, and your management fee into a single per-user price. The customer gets one clean line. You see exactly what it costs and what you make.

“Managed Workspace” ร— 27 users @ $42.00/user
Your cost: $31.20/user  |  Margin: $10.80 (34.6%)

๐Ÿ’ก Different customers can use different models โ€” one gets passthrough + markup, another gets a bundle, a third gets MSRP. MSP Mesh Map handles each independently without rebuilding your workflow.

โš–๏ธ Weighted User Billing

Not all users cost the same. Your billing shouldn’t pretend they do.

A company with 40 office workers and 30 warehouse staff isn’t a 70-user account โ€” not really. The office workers need M365 Business Premium, full endpoint protection, email security, and backup. The warehouse staff clock in on shared kiosks and need basic F-series licenses and nothing else.

Charging both at the same per-user rate either overcharges the frontline workers or undercharges the full users. MSP Mesh Map lets you assign weights to user types so your cloud management fees and bundle pricing reflect what each group actually costs โ€” and what they actually use.

  • Define user tiers โ€” Full User, Frontline Worker, Shared Kiosk, External, or any custom type you need
  • Assign cost weights โ€” a Full User might carry 1.0x weight, a Frontline Worker 0.4x, a Kiosk user 0.2x
  • Fair fee allocation โ€” cloud management fees and flat charges split proportionally by weighted headcount, not raw headcount
  • Per-user bundle pricing โ€” different bundles for different user types, billed at the right rate for each
  • License alignment โ€” the system checks that user types match the licenses assigned โ€” no F-series license on a Full User account

Cloud Management Fee: $500/mo
Allocated by weighted headcount

๐Ÿ‘ค Full Users ร— 40 weight: 1.0x
Weighted units: 40 $363.64
๐Ÿญ Frontline Workers ร— 30 weight: 0.4x
Weighted units: 12 $109.09
๐Ÿ–ฅ๏ธ Kiosk Accounts ร— 10 weight: 0.2x
Weighted units: 2 $18.18
Total weighted units: 54  |  Total users: 80 $500.00

vs. flat-rate: $6.25/user โ€” penalizes customers with more frontline staff

Shared Tenant: Acme Corp + Acme Realty

One M365 tenant shared between two legal entities. Acme Corp has 32 users licensed under Business Premium. Acme Realty has 12 users licensed under Business Basic. 8 shared guest accounts used by both.
Acme Corp invoice
M365 Business Premium ร— 32 users
Shared guest accounts: 4 of 8 allocated
Management fee: split 73% of total
Acme Realty invoice
M365 Business Basic ร— 12 users
Shared guest accounts: 4 of 8 allocated
Management fee: split 27% of total

๐Ÿ”— Shared Tenant Billing

One tenant. Two entities. Two separate invoices โ€” done right.

It’s more common than you’d think โ€” a parent company and subsidiary sharing a single Microsoft 365 tenant, or two related businesses that merged their IT but kept separate billing. Every platform treats this as one account. Your invoices shouldn’t.

MSP Mesh Map lets you split a shared tenant across multiple billing entities โ€” allocating licenses, shared resources like guest accounts, and management fees to each party based on rules you define. Both get their own invoice. You see the whole picture.

  • Tag users by entity โ€” assign each licensed user to the correct billing account within the shared tenant
  • Allocate shared resources โ€” guest accounts, shared mailboxes, and resources split by rule or by percentage
  • Independent invoices โ€” each entity gets its own invoice with its own line items and totals
  • Management fee proration โ€” flat tenant management fees split proportionally by user count, license cost, or custom allocation

๐Ÿข Department & Location Billing

Your customer’s finance team wants to charge IT costs back to each department. Now you can.

Larger customers โ€” and plenty of mid-size ones โ€” run internal chargebacks. They want to see what IT is costing each department or location so those groups can be held accountable. That means your invoice needs to break down by org structure, not just show a single total.

MSP Mesh Map maps each user and device to a department or location, then produces invoice sections โ€” or entirely separate invoices โ€” for each one. You build the agreement once. The splits happen automatically at billing time.

  • Location-level billing โ€” HQ, branch offices, remote sites each get their own section or separate invoice
  • Department chargebacks โ€” IT, Finance, Operations, Sales โ€” each sees only what they’re responsible for
  • Shared service allocation โ€” infrastructure and management costs split across departments by user count, device count, or custom weight
  • One agreement, any output format โ€” combined invoice with sections, fully split invoices, or a summary with department totals

Invoice breakdown: Regional Logistics Co.

๐Ÿข HQ โ€” Operations (45 users)
Managed Workspace Suite   $1,890.00
Endpoint Protection             $315.00
๐Ÿญ Distribution Center (22 users)
Frontline Worker Package   $330.00
Endpoint Protection          $154.00
๐Ÿšš Fleet & Remote (14 users)
Mobile Device Management   $210.00
Frontline Worker Package   $210.00
Total (81 users) $3,109.00

Are You Billing All Your Users?

The most common revenue leak in MSP billing isn’t a pricing problem โ€” it’s a headcount problem. Users added mid-month, contractors that slipped through, and license counts that drifted between systems.

๐Ÿ‘ค

New Hires Never Added to Billing

HR onboards a new employee, IT provisions their M365 account โ€” but nobody updates the agreement. That user is managed for weeks or months before anyone notices the count is off. MSP Mesh Map flags user count changes in M365 against your active agreement quantities automatically.

๐Ÿค

Contractors Billed at the Wrong Rate

Contractors often get the same license type as full employees but should be billed under a different tier โ€” or not billed at all if the customer is managing them directly. User tagging lets you define how each account type is handled at billing time.

๐Ÿ”ข

License Count Drift Between Systems

Your RMM says 47 managed devices. Microsoft says 52 licensed users. Pax8 billed you for 49 M365 seats. Which number is right? MSP Mesh Map cross-references counts across every connected system and surfaces the discrepancies so you can resolve them before they affect your invoice.

๐Ÿšช

Departed Employees Still on Agreements

Offboarding is handled in HR and IT, but the billing agreement isn’t always updated. You’re managing and billing for a user that left three months ago. Account status changes in M365 trigger a billing review prompt so departures don’t silently inflate your customer’s invoice.

Agency View: All Clients, True Per-User Cost

Acme Corp
52 users ยท M365 BP + Security Stack
$38.40/user
margin: 22%
Midtown Logistics
81 users ยท mixed tiers
$28.10/user
margin: 18%
Harbor Financial
29 users ยท M365 BP + Compliance
$44.20/user
margin: 9% โš 
Westfield Medical
67 users ยท HIPAA-compliant stack
$52.00/user
margin: 28%

๐Ÿ›๏ธ Agency & Multi-Client Billing

True per-user cost across every client โ€” not an estimate, not a blended average.

Agencies and multi-client MSPs need a real picture of what they’re spending and making per user, per client โ€” not a spreadsheet they update manually each month. When one client’s margin drops to 9% and you don’t know until you reconcile the quarter, that’s a problem.

MSP Mesh Map aggregates vendor costs across all managed tenants, maps them to each client, and calculates true per-user cost and margin in real time โ€” across every licensing tier, every vendor, and every agreement structure.

  • Per-client per-user cost โ€” true cost from all vendors, divided by the actual billable user count
  • Margin alerts โ€” flag any client where margin drops below your defined threshold before the invoice goes out
  • Cross-client reporting โ€” see all clients ranked by per-user margin, revenue, or headcount
  • Renewal intelligence โ€” know which clients are underpriced before their agreement comes up, not after

Why This Exists

Built by people who ran MSPs. We’ve seen every billing nightmare firsthand.

After 25 years of operating and advising MSPs, we stopped counting the billing scenarios that don’t fit neatly into any tool. Shared tenants. Frontline worker tiers. Agencies wanting true per-user economics across 40 clients. License invoices that arrive on one day but cover services billed on another.

We haven’t found a system that’s as flexible as MSPs actually need. So we built one. Every agreement structure in MSP Mesh Map came from a real scenario a real MSP was handling manually โ€” in spreadsheets, with custom QuickBooks workarounds, or just by leaving money on the table.

Tell Us How You Bill. We’ll Show You How It Works.

No two MSPs are the same. Bring your most complex billing scenario โ€” shared tenant, weighted users, multi-entity split, agency consolidation โ€” and we’ll walk through exactly how MSP Mesh Map handles it.