In the onboarding software niche, there are a number of business models. However, the most commonly used revenue generation instrument is the contract. Locking a new customer into a contract that runs for several years is one way to ensure that a software business has a steady stream of income. A contractual commitment means clients can’t easily extricate themselves from a vendor relationship and shop for services elsewhere.
With these contracts in place, a software vendor can focus attention on bringing in new clients without worrying too much about losing existing customers. Business owners, HR directors, and IT managers know that breaking a contract – even for a good reason – can lead to all kinds of trouble. The threat of early termination fees, a collection claim on the company’s credit history, and lawsuits are just some of the tools vendors can use to keep their customers from even considering going elsewhere. Plus, if a traditional license is involved, the customer has sunk a sizable sum into the initial investment of purchasing the software. It’s hard to walk away from that type of commitment even if the level of service is unsatisfactory.
Emerald Software Does It Differently
We do sympathize with the fact that running a successful software business isn’t easy. However, we believe that ongoing customer satisfaction is the factor that should determine whether a vendor sinks or swims – not how good their lawyers are at writing an ironclad, unbreakable contract. This is why we don’t use a contract-based revenue model to keep our SaaS business going. Instead, our customers pay a fixed amount per new hire on a monthly basis with no long-term commitment.
Emerald’s clients experience the speediest implementations in the onboarding software industry. Pair that with a cost effective monthly payment and pretty much any HR department can afford to give Universal Onboarding a try. We’re taking on the risk in the relationship so our clients don’t have to. It makes sense to work this way because you don’t know the quality of our services until you try them; but we already know what your response will be once you have access to our onboarding solution.
Our business model is based on bringing in new business and ensuring that our existing customers are more than happy with our software services. It’s only through this combination of growth and stability that we can stay in business. Fortunately, these aren’t mutually exclusive goals. When we invest in giving our current clients access to the latest and the best in software technology (such as our recent cloud computing option), we also attract even more new customers. It’s a way of doing business that makes sense to us – and we know it will make sense to you too.