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MenuWhat is the point of having multi-year contracts in SAAS if the customer does not pay upfront for the 2nd year?
What if the customer does not pay in the second year?
Filed under:
Direct Sales:
SaaS, Sales Management
3 answers
•
10 years ago
Answers
SN
SN
If you have an enforceable contract, the client is obligated to pay for the services received.
As a business owner, I would be very concerned if a SAAS was demanding upfront payment for 2 years.
JS
JS
A multi-year contract helps you ensure steady revenue for your business. So long as it can be properly enforced.
There can be different payment models: monthly, yearly, full contract upfront, etc... And you can discount each of the terms appropriately. If I were a customer I would want some flexibility in how often and what I pay for.
But just like everything else, no payment / no service.
SC
SC
You tie in the customer.
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