How do I create an amendment?
Creating an Amendment is as simple as going to an active Contract and clicking Amend in the dropdown. This will take you Available Products and Rates are configured by the MonetizeNow administrator on your team. If there is a product or rate you cannot find, that you believe should be, please discuss with them. Often the admin will deactivate legacy products and pricing in the product catalog to encourage standard and modern pricing strategy.
How do I add a ramp / change pricing in an Amendment?
Pricing can always be changed in an Amendment. However, MonetizeNow enforces consistent pricing frequency (e.g. Monthly, Annually) for an offering. This is to ensure that billing remains accurate and predictable.
The current best practice to introducing ramps or change the pricing frequency (e.g. from Monthly to Quarterly) is as follows:
- Amending the contract to cancel (effective the first day of the ramp)
- Creating a renewal contract off this amended contract with the desired ramp properties
All contract statistics (e.g. ARR and Incremental ARR) will remain accurate.
See the short clip below to see this in action.
The pricing doesn't seem what I'd expect? Why is this?
In an amendment, the per unit price shown will be the blended average price for the total quantity of the offering.
For example, if an initial contract had 10 units at $10 ($100/mo) and you would like to add 10 units at $20 ($200/mo), the price for the amendment should be set at $15 (for $300/mo total).
This is done because two actions are happening at once, a price increase and a volume increase. We want to ensure the end customer's pricing is correct and by displaying the final end customer price we can ensure there are no surprises -- especially when the amendment is happening in the middle of a period and requires proration.
See video below for an example of this exact situation in action.
Updated 26 days ago