For those, who have read LMS Moneyball – I discussed discounts and multi-year contracts. As such, I felt that a nice supplement to the posting, would be a mini paragraph I had initially in my LMS Contracts posting. I hope you find it helpful.
Multi-Year Contracts
Reality Rule
A three year contract is the appropriate way to go. It is the right amount of time, to get the full potential of the system, to maximize its potential to your audience, market it effectively to your employees/customers to use it (I know shocking, huh?), and roll it out in terms of ROI. THREE YEARS. Not longer and not less. Why?
One year: Worthless
You sign and dine. Then near the end of the year, you decide to renew and sign longer, an additional hassle, more problems, potential higher costs and really you have other things to build and grow upon – even with the LMS, but also other aspects of your training dept.
Two years: Cannot assess your ROI on this
How long did it take you to find your current LMS partner? Right.
Longer than 3 years: Risky
Your new BFF could be bought out and then what happens to you? Customer service wise? Does the solution stay the same, features? Also, from your standpoint, what if they make some changes or do some things and now you no longer want to go with the system, but are locked into this long term deal.
Note: If you want additional information on contracts, please read my post, “LMS Contracts“, which covers everything you need to do to ensure you are receiving a fair and accurate deal from the vendor.
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