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Hi, this is Karl with another SOP video for managed service providers. Today I want to talk to you about service agreements and in particular, seven reasons why you need to have of or perhaps update your managed service agreement. First, lets start at the beginning. Your service agreement is not about your service. Your service agreement is fundamentally an agreement about your relationship with your client. It literally lays the groundwork of how were going to proceed with this relationship. So it sets the tone. Its part of your branding, its part of your professionalism, its part of how you define the way that youre going to proceed, what you can expect and what the client can expect. So thats probably the most important thing. All the details, they fine tune some stuff, but fundamentally the document as a whole is about the relationship. Second, you need a contract because you need to keep your taxes straight more and more, not just in the United States, but across many count