Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual?
SaaStr
NOVEMBER 1, 2024
Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual? I think this is a topic where you get a lot of bad advice. Annual contracts combined with prepaid cash are a huge benefit, when done right: You get all the cash up-front (this is how I went cash-flow positive in fact) — IF you can collect it a timely fashion; and Your churn almost by definition goes down, at least nominal churn.
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