Short Term Sales Contracts

Video Below

Today, we’re talking about short term sales contracts. They are bad news for your company but potential customers will often ask for a short term contract on the premise that there’s a bigger, juicier, long term contract coming very soon.

When a customer asks for a short term contract — let’s say 3 months — you should respond with an offer for a 15 month contract. 3 months + 1 year. In exchange, you’re going to give the customer a lot of what they want — the annual price discount, you’ll allow them to pay in 2 parts — mimicking the short term contract, and even make it super easy for them to cancel after those 3 months.

BUT we want to avoid the short term contract, if at all possible. Because that means we will have to get 2 approvals in quick succession — 1 each for the short and long term contract — and that’s tough.

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