Your Terms of Service is the legal articulation of your unique business model. It supports every dollar of revenue. It is the most important commercial legal agreement for a SaaS startup. Get it right the first time.
Providing online services and software is a common startup undertaking. How they go about doing this usually unlike any other business. However many founders feel that their terms & conditions can be cloned from other services. This approach though not only breaches copyright, but usually inherits the flaws of another service along with making promises or describing features that simply aren’t relevant.
A startup’s Terms of Service is usually a contract entered into thousands of times by users, and governs the basis for the startups revenues and manages its liabilities. A startup should implement a Terms of Service when they’re ready to take on paying customers (and prior to this should implement some beta or pilot terms to disclaim liability during any testing periods). A tailored Terms of Service will give the startup certainty about its obligations, with the flexibility to change commercial aspects (such as pricing and product features) without needing to re-contract.
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