SaaS and self-service terms and conditions
Using terms and conditions that are not adapted to the SaaS model (self-service or signed) is risky. Learn how to choose the right terms format for your SaaS.
Do you sell a self-service SaaS and do you think you will save time by using the same terms and conditions as those provided for a SaaS contracted by quotation? It is a mistake. You must adapt the terms and conditions to your sales funnel.
There are two main ways to market a SaaS: the self-service model and the contractual model based on a signed quotation.
Although the legal basis remains similar, these two approaches require precise adjustments in your terms and conditions. Your terms and conditions must be adapted to your sales method.
In the self-service model, the customer signs up and subscribes to the service alone without negotiating or signing any formal document. The acceptance of the contract is done online, typically by a simple check box or an acceptance button after displaying the T&Cs.
Here, the GTC must imperatively provide for:
A common mistake? Requiring the customer to cancel by registered letter when the entire customer journey is done exclusively online. This creates unnecessary friction, and above all, a risk of the process being rejected by a judge in the event of litigation.
The key principle: stay consistent between the user experience and your terms and conditions. Your terms and conditions should accurately reflect the simplicity of the online shopping process.
On the other hand, if your model is based on more traditional contracting, with quotes and signatures, the clauses adapted to the self-service model become useless, even problematic.
In this case, your terms and conditions should instead:
The immediate consequence of using unsuitable terms and conditions is a risk. For example, in the event of a customer dispute, how will you prove the clear acceptance of the contract if your clauses do not match your sales journey?
In court, the validity of the consent will be evaluated strictly. You take the risk of having your terms and conditions considered not applicable if they are not adapted.
Good news, however: you can start from a common base for your SaaS CGV. But be careful, this base must be adapted according to your specific model.
Why choose a mutual NDA in SaaS? Protect sensitive information, save time, and build a balanced business relationship from the start.
Drafting contracts in simple language is recommended to reduce misunderstandings and the effectiveness of contracting: a few tips.
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I have been supporting software and SaaS companies for more than 10 years, to structure their business, protect their intellectual property and improve their contracts.
