Multi Year Vs One Year, HELP!

Client of mine is looking to renew for a multi year contract with an increase but wants the YoY to include no price increases.


My ELT isn't having it and is telling me to just stick to 1 year or elect a multi year with a % increase that equals the average 3 year flat the client is looking for. (The client won't I have explained this option already).


So we are looking at this:

Option 1: Total potential revenue if flat multi year ..... > 1MM

Option 2: Total potential revenue if 1 year ...... 1/3 of 1MM + a few grand


How would you approach this? As a entrepreneur in a side business I would take option one ALL day and twice on Sunday. Can someone explain why you would take option 2?


Keeping in mind year 2 and 3 are not guarantees it makes almost no sense to me.


Thanks!


👑 Sales Strategy
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🧠 Advice
3
JdiggityR
Executive
1
Enterprise Account Executive
What’s in it for your client? Don’t worry about YOU. If you look at it from their perspective the selling may be to you ELT not the client.
Lambda
Tycoon
1
Sales Consultant
100% i am on the clients side here,

either we get a 1 year and the client is pissed because they dont get the 3 year they want and we lose year 2 and 3 revenue
or we get the 3 year commitment but at the expense of pissing off the client
or we get 0 of 3 years because they decide to not renew!
JdiggityR
Executive
0
Enterprise Account Executive
I love it when leadership can’t get out of their own way. 
Meddic
Valued Contributor
1
District Manager
Will they do anything else in exchange for multi year that you value? Public reference, intro to other potential clients, try a new feature, etc.
Blackwargreymon
Politicker
1
MDR
Will they do anything else in exchange for multi year that you value?
Justatitle
Big Shot
0
Account Executive
As a business the only way I could take #2 vs #1 is growth in revenue YoY if you take option 1 the value of the client remains the same and you have no chance to grow the business on a PnL sheet option 2 shows business growth 
Lambda
Tycoon
0
Sales Consultant
So I thought that, but the thing is that year 1 is an increase from prior contract and there is a good amount of growth potential over those 3 years where we can make up the "lost" growth revenue if the salesman is at least halfway competent..... which is me so verdict is still out haha
Clashingsoulsspell
Politicker
0
ISR
Weekends are pretty scarce as they should be. We all need to reset for the week.
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