Creating your Enterprise SaaS Agreement
3 Things to Consider When Creating your Enterprise SaaS Agreement
Lots of clients ask me to help them with their enterprise SaaS agreement models. The discussion always starts with; well tell me about your ‘enterprise’ SaaS offering. Too often the clients don’t have it all mapped out, so we then talk about the following 3 issues.
Its About Price and When Your Customer Pays.
I have found that most enterprise SaaS customers are looking for a discount and are usually willing (but not always) to make some kind of long term commitment to your service (or some kind of other commitment that you can sink your teeth into). So remember that you are looking for a commitment here, and if you don’t get one then all you have given them is a big discount. Also, try to structure the agreement in a manner which requires them to pay upfront for at least 1 year (which is pretty typical for enterprise SaaS deals).
Is your Capacity Locked?
In other words, does your service prohibit them from exceeding the capacity they purchased (however that is measured) without coming back to you to make an additional purchase? If your service does have this restriction (which by the way I think it should), then providing the customer the ability to exceed the purchased capacity and pay later is usually part of the enterprise SaaS deal.
Price and Terms are Linked.
The main underlying theme of all enterprise SaaS agreements is price and terms are …