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Negotiating Contracts and Licensing Print

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Agreeing terms.

WHAT TO ESTABLISH ABOUT PRICING

What is included What is charged separately Currency What happens at renewal What price increases are permitted

WHY RENEWAL TERMS MATTER MOST

Initial discounts frequently disappear, and switching is expensive by then.

WHAT TO NEGOTIATE

Multi-year pricing certainty Caps on increases Pricing at expected future user counts

WHAT LICENSING MODELS EXIST

Per user, named or concurrent Per transaction or volume Per module Enterprise-wide

WHAT TO MODEL

Cost at your size in three years.

WHAT TO ASK ABOUT

Users who only view information Occasional users External users, such as customers or suppliers

WHY

They are frequently charged as full users unless negotiated.

WHAT IMPLEMENTATION TERMS SHOULD DEFINE

Scope, precisely Deliverables and acceptance criteria Responsibilities of each party What happens if dates slip How changes are priced

WHAT TO NEVER ACCEPT

Undefined scope with an estimate Payment entirely in advance

WHAT TO ESTABLISH ABOUT DATA

That it is yours That you can export it, in a usable format What happens to it on termination

WHAT TO HAVE REVIEWED

The contract, by someone competent.


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