1 year vs multi-year deals

Seeking tips/advice

I work in SaaS - I'm in a newish role where we get a higher commish percentage for a multi year deal. i've never been in this scenario, so in the past i've always done multi when the prospect brings it up first.

I've learned we typically only do this for larger deals - 10-15k avg. deal size so in the 40-50k range is large

My question - what is a good way to position a multi year over a one year if they're a first time buyer and implementation is ~30 days?

TIA

👑 Sales Strategy

2 comments

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HarryCaray

Notable Contributor

HMFIC

Do you lock in prices during the life of the contract? If so, it benefits the customer to sign a longer term deal. Come renewal time, there will likely be incremental price increases, and they won't have to deal with that for X number of years if they sign a long term commitment.

I work in SaaS so it might not directly line up with what you're selling, but that's the way I position it.

StraightCashHomey

Politicker

Manager, Commercial Sales

Always start with multi-year. It is more of the norm anyway. Companies don't like switching technologies annually and would prefer the multiyear pricing protection by committing to a longer contract.

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tonysoprano

1 year vs multi-year deals

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