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I've seen start-ups recently a few sign your customers want contracts to get started.

The logic will use that you'll can guarantee recurring income for your business (for the duration of the contract) or some if the person does not pay.

But there are two errors with this thinking:  

If your product is really good, customers stick around if you have a contract or NotIf of the customer owes less than a few thousand dollars, it is not even value to sue your time

 So if a contract links you never will enforce you, ask why even for it in the first place?  All you do is a hurdle to get new customers for your product try create.

Google AdWords is a good Beispiel.Die most agreements in the advertising world are done still with paper contracts but decided that let Google advertising via AdWords someone in a few minutes without starting up front costs or contracts.

 If not to pay, your AdWords account is Google not to sue you for $500.  It's not value your time.You shut down just your AdWords account, until you your Bill are ready bezahlen.Wenn of two years later you finally to try AdWords again, hey - no hard feelings - can it just numbers and your account is activated immediately.

When I see an Internet company, the questions for contracts, feels it must be not very good as your product - otherwise, why don't you would let me try it knowing I am likely to stick around?

Brian Armstrong

P.S. I certainly mean not to imply that all contracts are bad.For independent contractors, real estate, nothing to with larger sums of money, etc. can be made perfect sense.But most Internet companies are relatively small sums of money per person charge.

P.P.S.Ein is another way to look at "what would it cost you if the customer does not pay?"Most Internet companies have low marginal cost in their products (ad space, some CPU time, etc.).If high margins, to one you afford to give away all kinds of "free trials" in the form of people who is not bezahlen.Es once often worth it just to get your product in the hands of more people.

P.P.P.S.Die most companies (including Google) still make a "terms of service" agree to by clicking on a Kontrollkästchen.Verwechseln you this with a contract though.Die terms are usually to prevent * you * from sued, not the other way around, and it is that it will probably affect your signup prices sufficiently small hurdle.

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