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Published on Zdnet: http://blogs.zdnet.com/SAAS/?p=113

With traditional software selling, you make the sale, turn your back on the customer and move on to the next – “Accountability=none”. The on-demand model is great. If the customer fails, we fail, and vice versa. There is great reason to ensure the service works, not just for the customer, but for the future of the SAAS business too..
We’ve had customers try to talk us down on price. We say, “Sure, we could discount price, but that lost revenue at our end is affecting the level of infrastructure we can afford to have in place to support your business.” They always pay after hearing that – they understand.

With traditional software, it’s inherently a selfish model. The software co takes money for the product, and shifts the risk of the software to the customer’s end, often with no accountability if any issues occur. It’s “Tough, thanks for the sale, cya later!”

With on-demand software it’s a symbiotic relationship once in place. If the customer leaves, the SAAS provider suffers. If the SAAS provider leaves, the customer suffers. They need each other, which means, like it or not, you are in a forced ‘relationship building’ business model. It’s a great way to do business…

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About the author:
Julian Stone, CEO – Project, Task & Time Management specialist for: ProActiveSoftware.com, ProWorkflow.com & Julian101.com

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About The Author:
Julian Stone begin_of_the_skype_highlighting     end_of_the_skype_highlighting is the CEO of ProActive Software, developers and creators of the leading web based project management software http://www.proworkflow.com.