What Does Your EULA, SAAS or Master Services Agreement Say About You?

Interesting question. When a software, SAAS or other IT company sends its written end user agreement to the customer as part of closing a deal, it is really telegraphing a message about the company and its sophistication.

The wrong impression would be:

1. Is this company for real?
2. This seems too complex?
3. I don’t understand what they are providing and what we are responsible for?
4. I need to send this to the legal department or to outside counsel?
5. I will read this later; maybe on Friday?
6. It looks like they bought this on the web for $29?
7. I think they wrote it themselves?
8. I am not sure this company knows what they are doing?
9. Is this their first sale? 

I suggest that for any company looking for expansion capital, none of those impressions or observations would be a good thing or help the agreement move through the process.

Here is what your end user agreement should be telegraphing about you (at least if you are seeking venture capital funding). 

1. They are serious about this!
2. I understand their pricing/licensing/services model. It is very simple. 
3. They seem to be transparent about the way they work.
4. It seems like they know what they are doing.
5. I bet they sell a lot of this stuff.
6. Looks like they have vetted this agreement, and will stand behind it. 
7. This looks fair, and I am going to approve/sign it. 
8. I don’t see any tricks in here. 

When I work the OpenView portfolio of growth capital companies, I often ask them this question: So, what does your agreement say about you?

Read your agreement and find out, at least before your customer does. 
TAKE THIS QUICK TEST: Read this 2 page IBM agreement and see what it telegraphs about IBM. IBM NDA.