Don’t do it, unless your churn is high or they pay you a ton of cash up front (and $100 a month x any number of months isn’t a ton).
Many of your customers will last a decade or longer in SaaS. More on that here: The 10+ Year Customer | SaaStr
So …
- It’s not worth discounting this future stream of revenue. The discount almost always is too high if the customer will otherwise stay many, many years.
- You’ll be valued on a multiple of revenues forever. So terminating that revenue in the future isn’t worth it.
- The team won’t support the customer as well, probably. In SaaS, you have to keep re-earning the customer. That’s a good thing.
