Attribution · Published 2024-11-12 · 3 min read
The legal side of signing with an MMP
The big risk when you connect an MMP is the contract. Signing is quick and easy; getting out is nothing like as easy. I have stepped on every rake available — I very much hope — and lost a lot of money. Here is what I learned.
VAT
By default the MMP will include VAT in your contract with them. I am not much of an accountant, but for instance I would not be able to reclaim that VAT for my Cyprus company if the company providing the MMP is in, say, Germany.
What to do: work out with your accountants whether including VAT on the invoice is lawful in your case. If it is not, ask the MMP to take it off. MMP contracts are usually expensive — over $10k — so you will save around $2,000. A small word of praise for Adjust here: in exactly that situation they returned the money to my account by bank transfer.
The risks around terminating the contract
- You cannot simply stop using the MMP
…and assume you owe nobody anything. The installs keep coming and keep being tracked, which means you owe money for them. If you quietly stop using it, in two or three months invoices with impressive amounts start arriving. If you send those invoices to spam, debt collection agencies start calling. That is what happened to me with MMP "A". They literally wrote to my social accounts and rang my phone. When you stop using an MMP, always warn them using the proper procedure — see below.
- The contract will not end by itself
With another MMP, "B", I had this situation:
- We signed a one-year contract. The contract gives an end date of 10 August 2023.
- On 10 August an email notification arrives: "Agreement is terminated".
- In September and October I receive invoices.
- I ask the manager whether this is a mistake and get the answer "the contract has been renewed".
- I send over the contract PDF, which says nothing about renewal.
- In reply the manager sends me a line and a link to "additional terms" on their website, where the automatic renewal is mentioned.
Crooks.
- The contract has to be ended in advance
Read the termination procedure carefully. There will most likely be a clause saying "give two months' notice of termination to the stated email address". Miss it and nobody will meet you halfway. This is standard practice for American business, in principle. For a Russian speaker it is unfamiliar.
In general it is worth keeping in mind that large companies have lawyers and debt collectors who operate independently of the sales and support departments. You can be having a drink in a bar with your account managers while, in parallel, the lawyers are threatening you with court. And your friends the managers will not be able to help you.
Have you had unpleasant stories with MMPs? If so, please write about them in the comments.