Before launching your startup’s product, you’ll want to create a document that covers you against common customer liability claims. Below, you’ll find a sample Terms of Use template and how to use it.
The Setup
Ask your new customers to agree to Terms of Use when they are signing up on a website or mobile app. If you don’t have an interface yet, you can use an online form that sends the customer to your demo (e.g. Google Forms or Typeform).
Include a link to your complete Terms of Use document, but only require the customer to tick an empty checkbox to agree. Although some companies, e.g. Apple, insist that customers scroll the entire document before approving.
Template
Disclaimer — The terms in this document are general in nature only and you should have an attorney or other qualified professional review them for the particulars of your business. The document is for informational purposes only and is provided with absolutely no warranty.
It is primarily intended for companies based in the USA.
Sales Tactics
Once approved, this Terms of Use document lets you avoid asking customers for new signatures after each price change — see the “Paid Services” section of the template.
You can further simplify your sales process by using “purchase orders.” A purchase order is a letter-headed overview of your service and price, with the customer’s signature block; it should also mention the Terms of Use. Thus, when a customer verbally agrees to pay, you can send over a 1-page “purchase order” rather than a new contract. This approach vastly reduces legal review time for most customers, meaning you get paid faster.
Other Options
Outside of the Sterling Road template above, there are plenty of other templates available that may work for your startup:
CooleyGo — A well known startup & tech law firm offering an automatic Terms of Use generator, along with other tools. They offer both US and UK versions.
Termly — A compliance tool for SMBs, offering a variety of document generation tools, including a Terms of Use generator. Providing services for companies with customers in the USA, UK and Europe.
At the earliest stage of your startup, a good Terms of Use document is necessary for your legal protection. If you use available resources to get one live, and implement it correctly, it can lead you to closing sales even faster.
Thanks to Gunderson Dettmer and Silicon Valley Counsel, for their help constructing this template.
Thanks to Kaego Rust for their help with this article. Photo by Jonathan Singer.
Sterling Road invests up to $250k in pre-seed B2B startups based in the USA, Canada and UK.
Learn more by visiting Sterling Road
