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For SAAS companies, a well-crafted contract must be comprehensive, protective, and allow for the greatest profit potential.

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SaaS Law: A Crash Course

What is Software as a Service?

Software as a Service (SaaS) is cloud-based, on-demand software that allows third-party providers to host a company's applications and make them available to clients over the Internet. SaaS businesses typically generate revenue through subscription and licensing fees. Some also maintain an advertising revenue stream.

Are contracts and agreements the backbone of a successful SaaS business?

For SaaS businesses, reliability and trust are integral. Companies must be on top of data security, confidentiality, backup and contingency plans, cancellation - the list goes on. As such, terms of service, end user license agreements, and SAAS agreements play a pivotal role. If a SaaS startup launches with weak agreements, they could find themselves liable for trivial things that are preventable with the proper agreements in place.

More than just liability shields, SaaS agreements reflect a company's ethos and brand. What is the tone of your company's agreement: personable and approachable or stern and impenetrable? Does the company seem to be hiding something? Does it exude professionalism? All these questions must be considered when crafting effective SaaS contracts and terms.

What can a SaaS lawyer do for my business?

SaaS lawyers are invaluable resources for businesses -- especially startups. They can help:

What is the difference between software licensing and SaaS?

SaaS is delivered online and runs on a company or third party vendors' infrastructure. When clients want to install and run applications via their own computers or data centers, software licensing is required.

Whether a given situation calls for a SaaS-style agreement or software licensing depends on your operational details. Our online business lawyers can determine which model works the best for your company.

From a startup's or company's perspective, what things should be included in a SaaS agreement?

Good SaaS contracts limit liability and allow for maximum profitability. That balance is achieved by addressing:

How do SaaS businesses make money?

The majority of Software as a Service companies use a subscription model. Typically, users can choose between several subscription packages; businesses often set parameters on the number of users and transaction rates.

Increasingly, startups are opting for the freemium model: Offer a stripped-down version of the service for free and superior features for a fee. Utilitarian revenue models, where rates are based on usage, are also popular.

Questions For a SaaS Lawyer? Get In Touch.

Our firm has worked with countless startups and businesses on various SaaS and transactional matters. We offer flat rate packages, in the vein of LegalZoom and Rocketlawyer, but our work is customized to fit your business needs and done by an actual lawyer -- which will likely save you legal troubles down the road.

Get in touch today. The consultation is free.

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