Contract Tips
5 Hidden Clauses in SaaS Contracts That Cost You Money
Sarah Johnson
Dec 12, 2024
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Managing software subscriptions is one of the biggest challenges for modern businesses. With the rise of SaaS, companies are signing more contracts than ever before.
1. The Auto-Renewal Trap
Many SaaS contracts include an auto-renewal clause that requires you to give notice 30, 60, or even 90 days before the renewal date. If you miss this window, you're locked in for another year.
2. User Overage Fees
Pay close attention to how "users" are defined. Some contracts charge for active users, while others charge for provisioned seats regardless of usage.
3. Data Export Fees
Breaking up is hard to do, and some vendors make it expensive. Check for termination fees or costs associated with exporting your data.