Don’t do it, unless your churn is high or they pay you a ton of cash up front (and $100 a month x any number of months isn’t a ton).

Many of your customers will last a decade or longer in SaaS. More on that here: The 10+ Year Customer | SaaStr

So …

  • It’s not worth discounting this future stream of revenue. The discount almost always is too high if the customer will otherwise stay many, many years.
  • You’ll be valued on a multiple of revenues forever. So terminating that revenue in the future isn’t worth it.
  • The team won’t support the customer as well, probably. In SaaS, you have to keep re-earning the customer. That’s a good thing.

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