When I tell people we don’t have a contract with our software as a service (SaaS) product, they are often surprised. So many companies require a one or two year contract (much like a cell phone), that it is almost expected for mid-to-high end business software. Here’s why we don’t have a contract:
- Tightly aligns our interests with our customers since they can leave at will
- Requires us to get customers up and running quickly providing value within the first week
- Helps reduce our sales cycle and establish a nice cadence with our sales team
I recommend evaluating ways to achieve to these types of catalytic mechanisms.