StringerBell

Account Executive

Who's msa/contract: Enterprise reps

this isn't usually, or really shouldn't be an issue in the midmarket and smb but with really large Enterprises I'm often told it absolutely has to be on their paperwork.

My legal team pushes back because they think they're Microsoft (400 employee company...).

What's the norm? I've lost one deal this year because of this and there's another I am suspicious of.

I get it from the clients side in that they have a ridiculous number of vendors at their size and want things consistent. I sort of get from our side in that our contract focuses on what's relevant to our product and space. At the end of the day, we want those big company logos and money.

I certainly try and push for our msa but it feels like sometimes there's nothing you can do. What do other Enterprise SaaS reps do in these situations?

🧠 Advice

📈 Closing

☁️ Software Tech

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Pachacuti

Politicker

They call me Daddy, Sales Daddy

Its been my experience that the contract from the larger organization is often the one used. The thought behind this is that its harder to push through the other company's contract through the larger org.

In the end, it doesn't (shouldn't) matter who's contract is used since lawyers from both sides should be reviewing it for any "gotchas" (such as unlimited liability, etc.).

If your lawyer is causing unjustifiable problems, you need to escalate this within your org. Its one thing to bring up red flags which have a legitimate business concern, but its another when the lawyer kills a deal "cause it needs to be on our paper".

Sunbunny31

Politicker

Sr Sales Executive 🐰

You make good points. The problem we have run into from time to time is that the customer may have non-SaaS or tech paper, particularly if they’re large manufacturers. It can be a challenge in those cases, where the MSA is not structured properly for the solution we’re selling.

Sr. Strategic CSM

Agreed^
I’ve used this as a primary reason to the client to use our paper. ‘Your doc is longer and has import/export tax language. This is totally irrelevant to our cloud platform.’

Either way though, starting with the question of ‘what are the crucial issues in this MSA?’ AND knowing what your points are from legal and the business (e.g. no termination for convenience, keeping your IP), will help you push through redlines faster and agree to shit that won’t hurt you.

As an aside: Client order forms are annoying and often don’t end up being used for renewals. Although I’m going through this with a F100 right now.

braintank

Politicker

Enterprise Account Executive

Your team won't consider their MSA?

StringerBell

Politicker

Account Executive

It seems almost impossible for them to agree to that

braintank

Politicker

Enterprise Account Executive

How big are these deals?
I've had legal teams be sticklers about small deals, but if the ACV is significant they need to do their jobs and negotiate.

StringerBell

Politicker

Account Executive

In one that got shut down…it’s only 60k ARR with a 3 year expansion plan to make it 250ish ARR after expansion. The next one I’m worried about is 120 ARR. in the case of the latter I think it’s the range we should be more open. Let’s just say our product isn’t jumping off the shelf this year.

Sunbunny31

Politicker

Sr Sales Executive 🐰

Our company is smaller, so will take someone else’s paper. However - we will use discounting as an incentive to use our paper. It’s one lever. If they don’t, fine, but you don’t get some of that sweet % off.

jefe

Arsonist

🍁

We use our MSA, but there's back and forth with the client's legal team.

CuriousFox

WR Officer

🦊

Always red lines from both sides.

jefe

Arsonist

🍁

Yup. It gets done though

StringerBell

Politicker

Account Executive

I got my 9 page msa turned into 35 by an enterprise and my legal just said no. I thought it was extreme too but they don’t even try in several cases.

jefe

Arsonist

🍁

That's.... a lot.
I wonder how much of what you sent actually remained?!

ASalesCoach

National Director of Sales

I think the answer is often more about the industry the company is and not the size. I have had very large global companies sign my companies MSAs and very small that will not. the more risk adverse the industry, the more they want things on their paper. Oil and Gas companies of all sizes want to use their own paper. the issue of their paper is that we are a Microsoft consulting company (people sitting behind keyboards) and not vendors working in the oil fields. their MSA is build for those type of companies and not relevant to the work that we will be performing.
if you can get the business buyer to want to help, you can sway away from their paper.

GDO

Politicker

BDM

Sorry for the question, what’s a MSA?

Diablo

Politicker

Sr. AE

It’s Master Service Agreement

GDO

Politicker

BDM

Oh okay clear. Never saw the abbreviation

ThatNewAE

Big Shot

Account Executive - Mid enterprise

MSA is a mutually agreed upon document, and hence it shouldn't matter whose MSA you use. Normally - the company that wants an MSA in place is the one that provides the format and the "ifs and buts".

The terms and conditions are always in favour of both the parties, that's why the legal teams vet so carefully.

Beans

Big Shot

Enterprise Account Executive

Why not just redline theirs or have them manage yours?

kneehigh

Politicker

Senior Enterprise AE

We are a series C SAAS company 120+. Our clients are typically always happy to contract on our documentation, GTCs, SLAs, MSAs etc.
But their lawyers still have a field day amending it all. it really depends from client to client, one client's lawyers had like 3 amendments to a 20 page document another had 3 pages...

Closingcall

Executive

Enterprise Account Executive

I have worked at orgs that only use customer paper if its 100K and above or depending on the logo, were able to negotiate a case study or something for it. It is costly for a smaller organization to use other companies paper bc it is more hours they need to contract out to a lawyer. Not every company has in house council. It has to be worth it. That said, a lot of large enterprises (like banks, telcos, etc.) will only use their paper and they have specific paper for their SaaS agreements. One bank told me that the negotiation phase is shorter by using their paperwork and it then covers you for things as your company grows, adds more product lines, etc. Bottom line, there has to be a give to get. Your company should be slightly more flexible but what would they get out of it? Case study? Commitment to growth or introductions to a different business' unit? Speak at your conference? What would be a win for your team that the prospect could agree to?

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StringerBell

Who's msa/contract: Enterprise reps

21 comment

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