Amendments

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MonetizeNow enables Sales Reps to amend existing Contracts without the need to involve RevOps or Deal Desk (assuming approvals are not required).

Common Contract changes include:

  • Upsell: Increase the quantity of a Product sold earlier
  • Downsell: Decrease the quantity of a Product sold earlier
  • Cross-sell: Add another Offering
  • Extension: Extend the end date of the Contract

As changes by Amendment are done during the Contract term, prices often need to be pro-rated.

Example Amendment: adding licenses

Initial deal

  • Term: January 1, 2023 to December 31, 2023
  • Licenses: 10 licenses at $1,000 per license per year
  • Total charge: $10,000 paid on January 15, 2023

Amendment to increase license count to 15

  • Amendment date: August 1, 2023

Best practice is for customer's to have a single contract for all licenses of the same product, which provides for 2 options for this Upsell:

  1. Amendment with co-termination - all licenses ending on December 31, 2023
  2. Amendment with extension - all licenses ending on July 31, 2024

Option 1: Amendment with co-termination - all licenses ending on December 31, 2023

  • Term: January 1, 2023 to December 2023
  • Licenses:
    • January 1, 2023 to July 31, 2023: 10 licenses
    • August 1, 2023 to December 31, 2023: 15 licenses
  • Total invoice for contract term: $12,083
    • 10 licenses for 12 months: $10,000 (10 licenses * $1,000/year)
    • 5 licenses for 5 months: $2,083 (5 licenses * $1,000/year * 5/12 months)
  • Payments received to date:
    • $10,000 on January 15, 2023
  • Incremental amount due:
    • $2,083

Option 2: Amendment with extension - all licenses ending on July 31, 2024

  • Term: January 1, 2023 to July 31, 2023
  • Licenses:
    • January 1, 2023 to July 31, 2023: 10 licenses
    • August 1, 2023 to July 31, 2024: 15 licenses
  • Total invoice for contract term: $20,833
    • 10 licenses for 19 months: $15,833 (10 licenses * $1,000/year * 19/12 months)
    • 5 licenses for 12 months: $5,000 (5 licenses * $1,000/year)
  • Payments received to date:
    • $10,000 on January 15, 2023
  • Incremental amount due:
    • $10,833

Updated 3 months ago