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Contracts or No Contracts?

by solchristopher
12 replies
I would like to get opinions on wether to have 1 yr contracts or not for offline business clients for services I offer.

I also thought about 3, 6, 9 or 12 month contract options- and for every client that signed one of those, discount the monthly payment a little. The longer the contract-the more discount.

Please let me know your thoughts and if and feedback you've had from the forum or even your own clients.

Thx,

Sol
#\\contracts #contracts
  • Profile picture of the author Stranger Danger
    Without knowing what services you will be offering, what you will be charging and how you will be charging etc., it's hard to say.

    It's easier if you have control of things. For example, providing SEO to clients by using your own, private blog network, or hosting web sites on your hosting account etc.

    If you have control of your work/services, contracts become less important. If you charge small amounts, contracts become less important. If you are only accepting payments that do not/can not receive charge-backs, contracts become less important.

    What will you be doing? What concern(s) do you have, specifically, that you think you should use a contract agreement?
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  • Profile picture of the author agkfl
    Originally Posted by solchristopher View Post

    I also thought about 3, 6, 9 or 12 month contract options- and for every client that signed one of those, discount the monthly payment a little. The longer the contract-the more discount.
    You have the right idea, but depending on the Cost for the client, I would try upfront payment first. Guaranteed Income in any way possible.
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  • Profile picture of the author JMB Marketing Group
    Originally Posted by solchristopher View Post

    I would like to get opinions on wether to have 1 yr contracts or not for offline business clients for services I offer.

    I also thought about 3, 6, 9 or 12 month contract options- and for every client that signed one of those, discount the monthly payment a little. The longer the contract-the more discount.

    Please let me know your thoughts and if and feedback you've had from the forum or even your own clients.

    Thx,

    Sol
    Here's some food for thought!

    If you don't feel comfortable using a conventional contract, then why not use a "Memorandum of Understanding" instead. You can still state YOUR different time-frames, but it is less threatening for all parties involved, but still lays out the expectations of all the parties involved.

    Don't worry. It ("Memorandum of Understanding") is still considered a legal document, once it's been agreed upon and signed (this is a much cheaper route to go than having a high-priced legal document put into place) in MHO!

    Something to think about!

    Cheers,

    JMB
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    • Profile picture of the author David Miller
      It seems whenever I see a discussion about length of contract on the forum, the idea is almost always this:

      longer time = less money

      In most cases, this is not a bad idea at all, and it does depend a great deal on what it is you're providing. However, don't forget that in our current economy the price of virtually everything is going up quickly. If you are giving a significant discount for a 12 month contract vs. a 3 or 6 month contract you may find yourself with much less profit than necessary 6 or 8 months down the line.

      If you place value on what you are providing the client, and have sold it properly, why not offer a price guarantee instead of a discount. To many business owners, a price guarantee gives them the ability to plan expenditures for the long term (which is also a benefit of your service).
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  • Profile picture of the author jakecoop79
    Another factor is also the type of clients you are going after. For bigger companies the longer contracts make sense, they are used to them and understand them.

    For mom and pop stores, they are more fearful of contracts. For them it might be easier to get their business if you allow them to go month to month but clearly set expectations that SEO is long term.

    Then later down the road when they trust you and understand that you get results and can keep them ranked, they will be more willing to sign with you for 6 months to a year at a time.
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    • Profile picture of the author solchristopher
      Thanks to all who answered my questions on this post-it will help me out a lot.
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      NEVER GIVE UP... Always have a dream and live life the way YOU want to...
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  • Profile picture of the author Chronic IM
    Hello!

    Contracts are a bit risky. But it is also very effective depending on what kinds of clients you have, what services you offer and the deal you are offering. Start a short time contract for starters and if it profits you well, then you can bridge your contract with your clients.

    Best of Luck!
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  • Profile picture of the author MaxwellB
    If your solution (product/service) helps them get more customers and grow go for a contract, 6 months to 1 year.

    Do they plan to be in business for longer than 1 year? Do they plan to want more customers for longer than 1 year?

    Then it shouldn't be an issue to sign a contract.

    You should take this stance and stick to it no matter who you sell to. They will respect you for it and the relationship will start out on the right foot. Let them dictate when they can cancel and they'll be in complete control of the work you do for them.
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  • Profile picture of the author AboveSound
    You should always have some type of contract for a monthly service
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  • Profile picture of the author JerrickYeoh
    yeah , if the contract able to help you maintain your customer longer or paid more for your service then why not?
    contract is a need so that they won't run in the middle to cause lose to you .
    Usually high cost services do need this kind of contract to maintain your customers.
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  • Profile picture of the author rohiteshwar
    First make contract for small period after that go for long if he work in great response.
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  • Profile picture of the author housewarrior
    Hello Chris,
    Yes, you need to have a contract. Personally I use a very short but precise one. You can see it in my pdf on my site under my Community Website stuff.

    My contract lists only a half dozen points including how much is owed, and how much the next payment will be. It also serves as a receipt each time.

    It also says two important things... First, when payment is due and how much. And also that I'm not responsible for errors and omissions as the client agrees to approve my work as it is done.

    You could charge quarterly, but unless you are charging some kinda tiffany prices, I wouldn't go for less than bi annual. Get all or half up front.

    Biz type folks appreciate a good contract. It adds professionalism and stops confusion cold.

    Norm


    Originally Posted by solchristopher View Post

    I would like to get opinions on wether to have 1 yr contracts or not for offline business clients for services I offer.

    Sol
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