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by mwcampbell 2643 days ago
> But no one likes contracts and I don’t like conflict, so I didn’t ever transition to long term contracts. Again my lower brain (fear and the desire to be liked) took control and I decided to stick with month-to-month contracts. Then my upper brain came up with convincing arguments and justified this decision by saying I had created a “customer-friendly” pricing model.

Your upper brain was right. You did the right thing, and this is an example of where building to flip is at odds with doing the right thing for the customer. I hope we'll see more bootstrapped companies that are profitable enough to be sustainable and offer a good living for their owners and employees, but don't maximize profit or valuation at the expense of doing what's right.

2 comments

This is not correct. From the perspective of the buyer long-term contracts limit liability for an extended period of time, which reduces variability in expenses and lowers overall cost. Not every buyer values the benefit equally but to say 'no one likes contracts' is simply inaccurate. It's a big deal especially in enterprise markets.
Are long term contracts customer hostile though? If the offered as an option that ans cost less, they should be advantageous for everyone