How to use FAQs in SaaS Contract Negotiations?

How to use FAQs in SaaS Contract Negotiations?

  • FAQs - Aber Law Firm

saas contract negotiationsI have found that FAQs are not used enough by SaaS companies as part of their selling and SaaS contract negotiation process. Here is the frame of reference, at least from my perspective: you are selling something that is intangible (aka cannot touch or feel) and your customer does not exactly know what they are getting. They may know how much it costs, but how it works and what exactly they get are somewhat elusive. This is never good when trying to get a SaaS contract deal closed. So here is what you can and–more importantly–should do.

  1. Create

    Create a really great FAQ for your customer (including their purchasing, finance and legal departments) so they can better understand, for example, your ordering, renewal, onboarding, payment process, etc. The FAQ should be short and list the most important issues first. Remember, contracts are poor communication vehicles, but FAQs are great at it.

  2. Communicate

    Have your sales team use the FAQ when they are selling and when they are working with the finance, purchase or legal departments of your customer to get the SaaS contract closed. These people want–and more importantly need– to understand these things, and it is your job to educate and explain it to them. Did you get that? This is part of your job.

  3.  Examples

Who is doing this well?

  •  Kareo’s FAQ is really great. It is simple, short and to the point. Plus the questions are listed in categories, and the answers are hidden (initially), which makes it easier to read. Good thinking Kareo! Here is the Link.
  • Atlassian’s FAQ is super too. They probably have the most comprehensive software company FAQ I have ever seen. They call it their Licensing and Purchasing FAQ. Take a look. Link

 Who is not?

  • The open source movement has lots of FAQs, but I don’t like them. Good intent, but bad execution. See what you think? Link. 

You may not realize that there is a lot of anxiety (worry about an uncertain future outcome) before a SaaS customer decides to sign a SaaS contract, and sorry to tell you the anxiety is actually  increasing over time (these data breaches are really causing the increase in anxiety). So the only way I know to combat anxiety is to communicate and educate, and a FAQ is probably the best way to do it. So get working on your FAQ and get it out there! 


Disclaimer: This post is for informational and educational purposes only, and is not legal advice. You should hire an attorney if you need legal advice, which should be provided only after review of all relevant facts and applicable law. Also, Kareo is a client, so I need to mention that.

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