Sales Agreement Templates

Sales Agreement Breakdown: Active User Subscription With True-Up

Sales agreements are created for a variety of use-cases, a single template cannot be one size fits all. That’s why we created the RevOps gallery of pre-made sales agreement templates. 

The RevOps gallery is your source for sales agreement templates to fit your individual business use-case and pricing structure.

Choose one and start customizing it for free. 

For the second in our series of posts covering the various templates in the gallery, we’ll be focusing on the Active User Subscription with True-Up template.

For businesses that have their products priced on a monthly, per-active user basis, a significant challenge arises when a customer wants or needs to increase their active-users mid-payment cycle. 

For this situation, a true-up built into your contract is ideal. 

The Active User Subscription with True-Up template was built for this exact scenario. 

This template allows you to create a simple per-active user agreement but gives your customers the flexibility to add additional users as-needed within an agreed-upon price. 

Let’s break down this template into its various parts. 

Get Started With the Active User Subscription With True-Up Template for Free

Active User Subscription with True-Up Template

This template comes with two SKUs out of the box:

  • Monthly SKU: For products priced with a monthly charge
  • Metered Usage SKU: To create a true-up rate for overages

Monthly SKU

With the RevOps monthly SKU, companies that charge on a per-seat, per-license, or per-user basis can quickly create agreements. In addition, you can easily map this SKU back to Salesforce and enable limits on discounting off the book price. 

For overages, let’s look at the Metered SKU. 

Metered SKU

The metered SKU in RevOps enables you to easily add a true-up price for additional active-users to be added during the billing cycle. In addition, RevOps allows you to create tiered pricing structures for different buckets of users. 

A best practice for leveraging this SKU would be to user volume discounts – decreasing the price as the active users they add increase. This incentivizes the customer to grow their account and helps you grow your revenue. 

In the example above, the per-active user rate for the subscription is $99 per month for 12 months, coming out to a total of $1,188. 

The true-up – the cost for additional active-users – is $129.00 per active user. 

A monthly subscription is one of the simplest ways to structure an agreement, it requires little customization or oversight and can help you close a deal quickly.

It’s easily described on a pricing page and a transparent offer with no hidden fees. 

However, what if a customer plans to expand their users mid-billing cycle? You could re-negotiate the cost of additional users mid-cycle, draw up a new contract, and go through the entire closing process again…

Or you could use a True-Up. 

True-Up

The RevOps Active User Subscription Template with True-Up enables you to establish an agreed-upon price for any additional active users a customer might add throughout their billing cycle. 

This is done by using our Metered SKU. 

With a monthly subscription on a per-active-user basis, there is a price set for an agreed-upon amount of active-users for a given billing cycle. A true-up can be added in which an overage cost is set for additional active-users in the terms of that contract and is billed at the end of the billing cycle. 

A familiar example of a true-up is seen in your electricity bill. At the end of the billing cycle, you will receive a true-up statement that reconciles all costs associated with your usage against the credits you have paid for. If there’s a discrepancy, you are billed the cost of those overages. 

In the context of an active user subscription agreement, the customer usually makes an assessment of their planned active-users, this is done in good faith and based on their best available knowledge of how they foresee their usage. The provider generally keeps tabs on their active users but doesn’t enforce its limits so as to not impact the business’s operations. 

The costs of going over the agreed-upon amount of active-users are then assessed and a “true-up” is applied to align the agreed-upon terms to your actual active users. 

Get Started

Does your business charge on a per-seat, per-license, or user basis? Then the Active User Subscription with True-Up template from the RevOps Gallery is perfect for your needs. 

Head over to the Gallery and check it out, click “Use Template” and get started customizing this template to your specific needs today for free.