The Playbook

Sell the Whole Year Up Front and the Renewal Chase Disappears

This firm just had its biggest sales month ever. The part that changed the business was not the size of the deals. It was the length of them.

This firm sells into a defined enterprise market and had two problems it could name precisely. The first was volume: four new clients in an entire year. The second was shape. Every new client that did land arrived as roughly a quarter’s worth of work, which meant the team started working the renewal almost the moment delivery began.

Two new clients signed in the same month this year, and the founder changed one variable at signing.

The move is unglamorous and easy to copy: ask for the year at the point of signature rather than selling a quarter and hoping the relationship survives the first renewal conversation. Same client, same scope of work, different contract term.

Worth noting what the founder is building toward. This firm is deliberately assembling its sales and delivery process into a documented operating system, with the stated intention of positioning the firm for sale at the end of next year. Contract length is one of the pieces being put in place for that.

Why it matters to you.
A quarter-length engagement means you have to sell the same client three more times a year. That resale consumes real selling capacity, and it is capacity that never reaches a new prospect. It is the quietest tax on a growing firm: your pipeline has to work harder every quarter just to stand still.
“We had two problems before. One was we only did four new logos all in last year. We’re already on 6 now for this year. And two was when we did get a new logo, it was for a quarter’s worth of work, and then we immediately had to start working the renewal, so this time we were able to sell them both for 12 months, so it’s a double win for us.”
Your one thing.
Look at your last three new clients. What term did each one sign, and how many days after signature did someone on your team start working the renewal?

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