4 ms·
I honestly wouldn't target startups as contract customers - many who have gone down that route find out the hard way that startups are volatile - one day they a
by moocow01 15y ago
I honestly wouldn't target startups as contract customers - many who have gone down that route find out the hard way that startups are volatile - one day they are on-board with you and the next day they are short on funding, changing direction, etc. I'm sure there is opportunity but managing the process and churn could be a really tough challenge. Just my 2 cents.
- Aloha 15y agoI agree, since I want to be able to offer plans without long contracts, to deal with that I ether need to; 1. Raise the onboarding cost high enough so leaving at the drop of the hat is not expensive for us.; or 2. Lower the cost of acquisition of customers.; or 3. Pass the onboarding costs on to customers as a setup fee. If it costs me 250 dollars to bring on a customer, and they leave after two months, I'm never going to make money. Obviously a contract is always an option, I get stability, customer gets lower pricing, at a cost of flexibility on both sides. The big advantage of startups is customer acquisition is easier for us, they are less barriers for contracting, and getting them to try our service, furthermore; these are companies that have no real viable way of providing support as-is – it’s a win-win.