A sales agreement is a contract between your company and its customer that covers your services and limitations. It's the most important sales document since it helps align expectations from the onset of the customer relationship. A sales agreement that isn't clear or comprehensive enough puts your company at risk of losing a customer, damaging your reputation, or, in the worst cases, being sued.
All sales reps should be well-acquainted with the sales agreement template and should be clearly articulating the information to leads as they move them through the pipeline. By the time leads are ready to sign the agreement, there should be very little new information presented.
SaaS sales agreement templates are a bit trickier than other products. Since the product or service is virtual, you'll need to be explicit about exactly what you're offering, how often, and how you plan to bill for it. While sales agreement templates will differ from product to product, there are some basic clauses that you'll need to include:
- The service level agreement (SLA) which includes service, installation, and support. You need to detail the availability of the services, how you handle hosting, and how you maintain the software. This is also where you'll include quality standards and time frames for dealing with any bugs or latency issues.
- Permitted and prohibited use stipulates who can use the services and to what extent. This clause usually explicitly forbids making any changes to the software or sharing with unknown people.
- Ownership explicitly defines who gets the rights to anything created through the services offered. So in the case of collaborative writing documents, who owns the rights to the documents created within.
- Data management and security explains the extent to which your service is keeping personal information from being compromised. This is particularly important in SaaS since sensitive data usually lives on the provider's servers, rather than the customers'.
- Termination stipulates who can terminate the contract and under what circumstances. It should include information on how much the customer is responsible for paying upon termination and how offboarding works.
Ideally, you'll want to get your sales agreement reviewed by a law firm to make sure you've covered everything and protected your businesses.
Perspectives on Sales Agreement Templates
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