ChickenDinner

Account Executive

Valued Contributor

Client backs out after signing contract

I'm a new AE in saas sales and very frustrated with how many rescissions I've had already. I have had 4 people rescind from my first 10 wins and all did so before implementation even started. 1 ghosted after signing. 1 ghosted and eventually fessed up that their business is newly broke. And the other 2 ended up being non-decision makers that signed as if they were the decision maker even though I asked if there need to be other folks in on the decision.

So I take those as a loss. And then my boss comes back at me with "it's a legally binding contract you need to enforce it" so i'm trying to be all bad cop with these people but I have no authority to make them pay up. And they are 5k and 7k deals which just aren't worth chasing.

So how do yall approach folks like this that back out of the deal after signing? Advice appreciated!

🏰 War Stories

☁️ Software Tech

9

11 comments

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CuriousFox

WR Officer

6

🦊

If your boss feels that way then they should be backing you up.

SaaSam

Politicker

4

Account Executive

Honestly, chalk it up as a loss. Nobody is going to take this to court. Your boss is just hoping you can squeeze some juice out of these lemons but at the end of the day there isn't anything you can do that doesn't risk you making a terrible name for yourself and your company.

ChumpChange

Politicker

2

Channel Manager

The best advice here. Your boss is trying to squeeze blood out of a rock. It's a leadership Hail Mary.

TennisandSales

Politicker

1

Head Of Sales

very true. if a customer doesnt want to pay they wont pay. not really much you can do about it.

braintank

Politicker

1

Enterprise Account Executive

I've never had this happen. Who are you selling to??

TennisandSales

Politicker

0

Head Of Sales

never? damn your lucky!!

ChickenDinner

Politicker

0

Account Executive

I sell to HR professionals for businesses under 50 ee. Some of these folks are real small like 10ee

jefe

Arsonist

1

🍁

Let legal earn their keep and go after 'em

(as unlikely as that is to happen)

TennisandSales

Politicker

0

Head Of Sales

this.....is literally my worst nightmare. I had this happen more often when I sold insurance. people would sign, and I would get paid and then when the policy was issued they would change their minds and I would get commission pulled back.

also this should NOT be your job. this should be your manager/ finance's job to collect on payment.

antiASKHOLE

Tycoon

0

Bravado's Resident Asshole

I have only had this happen once and it was a similar situation where they recently came out as going through bankruptcy. nothing we could do and had to cancel contract. Clients aren't dumb. No contract is final until services have been provided.

Ashing

Opinionated

0

Senior Account Executive

If you're expecting to get nothing, and you know your legal team won't back you up, so you have no stick to hit them with, try the blank cheque technique.

You explain to them that they owe you X (whatever the cancellation fee, or half the term, or whatever is in your T&C's)

Then you say you understand their situation, and you would like them to propose a fair amount to pay that will release them from obligation. Tell them you will accept what they offer (even if it's $0) if they think that's the fair, equitable, and correct thing for them to pay.

Often you'll get at least half of whatever you should be owed, just so they can sleep at night. Yes many will go with $0, but if you were already expecting $0 this is a nice diplomatic way to try for more, and you never know where you will run into these people again later in your career

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