Making mistakes in a $112.8 billion Software as a Service (SaaS) market with an 18.3% annual growth will be an expensive one. While there could be mistakes in the aspects of product development, there are also mistakes made by providers and businesses in the aspects of the SaaS agreement. We highlight these mistakes, so you don’t fall victim.
Not Negotiating Terms
Our last post was about what you should know when negotiating a SaaS agreement. Interestingly, most businesses don’t even read through and just sign this agreement like a click-wrap. Getting a lawyer versed in the nuances of the software industry to handle the negotiations is a smart thing to do. Remember, billing and costs should not be the sole basis of negotiation.
Involving Multiple Drafters and Editors
It is common to have documents involving multiple drafters and editors. This not only makes the review, negotiation and approval process longer but could cause the SaaS agreement deal to fall through. Make things simpler and faster by involving only key persons, especially those with the requisite knowledge to negotiate and the appropriate authority to close the deal.
Inaccurate or No Documentation
Most businesses are clear about their financial flow and take painstaking efforts to document them. However, this practice does not seem to spill over into their management of legal contracts. One could blame the fact that legal contracts usually have to go through several eyeballs and multiple revisions. Another factor could be not having a dedicated digital location for legal contracts.
Having a well-drafted, well-negotiated agreement is important for a thriving SaaS business and experience, for both vendors and users. Feel free to send us a message, so we can handle this for you.