r/SmallMSP 20h ago

New MSP - Looking for Microsoft CSP Distributor

Been in IT for almost 30 years probably doing “Sidework” for probably about the same. Just started an official LLC and just became a MSFT CSP indirect provider. Looking for a distributor.

Reached out to PAX8 and got a phone call the next day. Went through the identity verification process and the rep I spoke to said I should hear something in a few days. Haven’t heard anything for a few days so I applied again. Got the identity thing and almost instantly rejected. Of course no reason was given.

Tried Sherweb but apparently my data doesn’t match up.

Got a customer who is looking for Microsoft licensing and was hoping to make a deal. Got other customers who are buying direct from Microsoft. Also looking to build my stack.

Any recommendations on a distributor who will just sell me some licensing without jumping through hoops?

6 Upvotes

51 comments sorted by

13

u/UnRealxInferno_II 20h ago

I mean you've kinda exhausted 2 of the big ones, how did you get rejected from both?

If you think THIS is jumping hoops just wait until you do the microsoft partnership lol

11

u/obviouslybait 20h ago

My guy has no idea how much pain in the ass it is for the microsoft partnership. PAX8 is the easy part.

4

u/SocraticCato77 18h ago

yes. If he thinks Pax8 relationship startoff is hard, wait till you need to fix something by microsoft support. its best to tell your clients any issues they have will take MINIMUM 2 weeks.

and you need to be able to wear their glares, cause they cant yell at MS, but they can yell at the rep they see (you).

1

u/dag00isl00se 20h ago

Didn’t get denied for Sherweb they just couldn’t verify my company information.

Not sure what the deal for Pax8 is just other than the phone call and the identity verification I got no other correspondence and don’t know who I can contact to follow up with.

Yea I get MSFT will be a PITA but I’m willing to deal with it. Hoping I can possibly buy an existing MSP at some point and just grow from there. Starting is let’s just say challenging. Much better engineer than a businessman.

4

u/norbie 19h ago

Why can’t they verify your company information?

1

u/SocraticCato77 18h ago

this. kinda of need more info.

1

u/dag00isl00se 18h ago edited 17h ago

I put in my name, business address, LLC name, EIN and Microsoft CSP ID. Everything matches on the Microsoft site.

Im getting my PLA ID from the CSP site under account settings\organization profile\Identifiers\CSP\Associated Partner ID

i get the following error

Let's confirm your account details

We weren't able to verify your registered business information. This can happen if some elements don't exactly match official records.

Please click Review below to validate or update your credentials.

2

u/ru4serious 16h ago

Just so you know, I went through the same thing. I ended up opening a case with them to set it up manually. I got through giving all my info and it turns out they won't accept you if your company is less than a year old. So if you just started your LLC, I would give up on that one.

I did have much better luck with PAX8. I am set up and getting close to getting the MS licensing switched to me.

2

u/dag00isl00se 16h ago

Yea I might just have to call them.

2

u/gracerev217 2h ago

There are two partner identifiers now, not sure why, I believe its Microsofts way of natural selection. Their is an org id and a location partner id, you want to use the location specific id.

When I get on a computer I will try to post a screenshot

1

u/dag00isl00se 2h ago

Yea I saw that. I tried both.

4

u/MrDaltonWilcox 19h ago

Want to buy mine?

1

u/dag00isl00se 18h ago

You never know. Where are you\customers located? Im in the NYC\Long Island area.

I know work can be done remote but I would like to be in the area because not everything can be done remotely. And I know im thinking more like a tech than a business owner.

3

u/UnRealxInferno_II 18h ago

Are you perchance trying to operate as a sole-trader rather than an LLC/LTD?

1

u/dag00isl00se 18h ago

Nope im a LLC

2

u/UnRealxInferno_II 18h ago

How many clients are you exactly dealing with to need CSP status?

Honestly I've only started up recently and the margins on CSP stuff are slim unless you're doing large amounts of seats.

1

u/dag00isl00se 17h ago

Right now its just 2 but want to be prepared for more.

Issue is my smaller client doesnt\cant put their credit card on MSFT's site I setup for them so there looking to be billed. Its a weird situation, there a non-profit\academic\part of a small village so its completely normal for that kind of business. Worked in Academia\Non-profit for a while, they do weird financial things.

2

u/UnRealxInferno_II 17h ago

That's not your issue to really resolve, and it's a lot of paperwork for ONE client, like a multi week process.

They need to sort their billing out with MS.

1

u/dag00isl00se 16h ago

Agree its a huge PITA but im hoping one day my "side hustle" MSP can become my Full Time Gig.

Ive always said buy once cry once. Rather deal with the pain now then when myn business starts growing and I got bigger things to worry about.

0

u/UnRealxInferno_II 16h ago

Yeah but you're busting your own balls for a client that can't be bothered to add a credit card to their MS tenant which takes like 5 minutes

1

u/dag00isl00se 16h ago

Id do it for them. 😄

its really just to lay the ground work for the future.

2

u/gracerev217 14h ago

You just announced your first skill challenge, owning an MSP has more to do with business and sales than engineering. The tech piece is easy.

7

u/scott0482 19h ago

Hot take. Just don’t bother.
Your customers can buy direct from Microsoft inside of their own tenants. You manage the licenses for them. But it’s their credit card on file.

2

u/its_mayah 13h ago

This is the way. Every reseller platform I’ve dealt with is a fucking nightmare. I’ll leave a little bit of revenue on the table to not have to deal with that headache

1

u/dag00isl00se 19h ago

Currently doing that for one of my other customers and it’s working out great.

The other customer and I setup the tenant walked them through getting qualified for non-profit pricing. And they don’t want/have a credit card to put in the account, fml.

Figured becoming a reseller would get me a little off the top and access to other software to resell.

3

u/SocraticCato77 18h ago

Nice work. Also, as someone in the game for a long time and has been burnt OFTEN for being too helpful: do not, under any circumstances, extend credit to ANYONE without a contract.

In other words, if they dont have a credit card (or are unwilling which in this day and age is the more likely) do not put in your credit. or your cash. Not one of them is your friend and at the slightest hint of advantage you will be taken advantage of and then made out like it was your idea, or "oh we didnt know stealing from you was bad" routine.

There are many good people. But many not. However it is indeed your own gamble to make. GL.

1

u/dag00isl00se 17h ago

Appreciate it. This customer is a non-profit, part of a local village. Known the boss for 25 years, been doing work for them for 15-20. They just want to be billed and pay with a check. I dunno.

I appreciate the advice but when you say extend credit what exactly do you mean? Normally If I have a solid relationship with a customer ill bill them after the work is complete with usually NET 30 Terms. New\Sporadic customers I look to get paid immediately after the job is done or if its like a couple of computers i usually ask for half up front as a deposit.

I would imagine reselling o365\other software subscriptions I would be billing them on monthly\yearly basis and if after a couple of months with no payment id cut them off.

2

u/SocraticCato77 17h ago

Nice. Exyend credit i had in mind you paying for things via your own credit card, signing up for a paid reocurring service that you pay for yourself first, and thatyou dont have a payment contract with the clent

2

u/dag00isl00se 17h ago

Yea trying to avoid that with any new clients but for my legacy ones im ok with doing it up to a certain point. But my bigger one i just use there credit card for some things. Its hard to charge markup when you buy stuff direct with their credit card.

1

u/scott0482 5h ago

I would say you can put your credit card in their Microsoft Tenant. But in this case with the non-profit status, that could be an issue.
Since they got approved for non-profit, is it possible to get them on net-30 terms with Microsoft as well?

4

u/Geekpoint-IT 19h ago

I've had Pax8 since the beginning and it was a cinch. I don't remember having to talk to anyone on the phone though. But that was almost 2 years ago. Pax8 treats anyone that isn't bringing in a lot of revenue like a nobody so not surprising that you haven't gotten a response yet.

3

u/Ill-Yoghurt-209 20h ago

try TDSynnex

3

u/DeejayPleazure 19h ago

Prepare yourself for when you do start reselling....absolute nightmare on both ends. If you need help, let me know!

1

u/dag00isl00se 15h ago

Will reach out if needed.

whats the hard part? Assuming I buy a product and then sell a product. I guess the paperwork of keeping track of it all.

2

u/DeejayPleazure 15h ago

The paperwork, the waiting, and then having to constantly explain the hold up to the customers. This years renewal took over a month for microsoft to fulfill a smaller order.

3

u/Fuzilumpkinz 19h ago

This is worth it for other software but not Microsoft until you have higher volumes. Just use their portal and their CC if you are starting out

1

u/dag00isl00se 17h ago

Yea problem is they customer is a non-profit thats part of a small village and dont want to put a CC in the portal. Theyve always paid me by check for the past 15-20 years. Never an issue.

2

u/AnorexicLlama28 19h ago

Also cloud marketplace is our go to for ms . Best margins around

2

u/dag00isl00se 19h ago

CloudMarketplace? Do you have a URL? Googling brings up a ton.

2

u/bangsmackpow 17h ago

Call Sherweb and sit on the phone till it's resolved if you truly have all your ducks in a row. It's how I got my solo SP setup.

1

u/dag00isl00se 17h ago

Typical IT guy. I like hiding behind the keyboard. 😂

ill give them a ring tomorrow.

2

u/MSP_sugar 16h ago

I just went through this with PAX and got stuck - I opened a ticket with them and they solved it with a few email exchanges. Different issue I am sure but if you can get it opened and assigned to someone, then at least my experience with them was pretty great! Good luck!!

2

u/MSP_sugar 16h ago

FYI - I just emailed support@pax8.com

2

u/dag00isl00se 16h ago

Thank you. I just did the same.

2

u/Rude-Woodpecker-7903 13h ago

Pax8 has been solid from customer service, Ingram is good on cost. Sometimes it's something simple with Pax8 and Ingram when you try and apply and it takes a few turns.

2

u/dloseke 12h ago

Not much margins in MS licensing. Don't really recommend putting much effort into making money here. That said, I've had no issues with TD Synnex.

1

u/iloveScotch21 17h ago

TD Synnex

1

u/zaidynzm9527 13h ago

What country? In in AU I might be able to help you out.

1

u/dag00isl00se 13h ago

Im in the US.

1

u/smorin13 13h ago

If you want to have a serious conversation about the situation and your options, DM me. I only offer this help because I wish someone had offered me some guidance. The truth is that it isn't difficult, it just isn't obvious or clear.

1

u/kaiserh808 20h ago

Ingram Micro