Question
We provide 3D modeling and 3D Printing customization tools that our clients can implement into their own websites and shop systems. The software runs on our servers and allows clients to provide their customers with a very intuitive, easy-to-use interface to customize and order 3D printable designs.
When we form a contract with a client, that gives them license to use our software and implement it into their website, how do we determine an appropriate cancellation period for the contract? As a startup, we would like to keep our options as open as possible and we do not want to hinder our acquisition by a larger company. On the other hand, our clients will -- in terms of their own revenue -- depend on our product's availability, to varying degrees. In those regards, how short can we make cancellation periods on our end, which allow us to close down the provision of the service if necessary? Or should we simply commit to annual contracts? What is the usual practice?
Answers: 1 public & 0 private
What about doing an annual initial contract with an automatic renewal unless there's some kind of notification 30 or 60 days before the end of the year? But after the initial year you can do a 60 or 90 day cancellation period? That way clients aren't locked into something for too long but you have the stability of having them as a client and working through any issues that first year.
I have had some business owners tell me how frustrated they are with being locked into a contract with a SaS company they don't like anymore (or whose initial issues never got resolved). I think if they had been able to cancel their contract they would've been much happier and wouldn't have been as vocal about their dislike of the product.
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