Unique Original Articles » What? No Early Termination Charge?

What? No Early Termination Charge?

Author: Patrick Clements

Recently, I posted an answer on LinkedIn's Q&A section about SaaS contract terms. Instead of using examples and vague descriptions, I sent our primary subscription contract to him for review.

Here was the response that I received:

Jason:
What happens if a customer just wants to cancel early, no breach of contract involved?
Is there an early termination fee?
Thanks,


My response:

Our approach to customer relationships is very centered on satisfying them. On one year contracts, if they cancel we will refund them a pro-rated amount equal to time left. On a multi-year contract, the only thing extra they will owe us is any discounts that were given for the multiple years.

We do not charge a penalty for our clients to cancel because we feel that it is a failure on our part to deliver what we promised. It may be that they simply did not put the effort into implementing, but that could be partially our fault as well for not giving them the proper tools to assist in the process.

One of the primary inspirations for our approach this (and other aspects of our business culture) has been Seth Godin's blog and his relentless approach on businesses not being satisfied with where they are.

If you are looking for outside ideas to help shape your business/organization, and you are not following Seth's blog now is the time. His insight and creative approach to being remarkable is a great tool... and it's free!

It's been three weeks since my response. My assumption is that my answer was not what he was looking for. I bet he's not listening to Seth!
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