<ul><li>Allowing refunds in a multi-year SaaS contract paid upfront can be a controversial decision for startups.</li><li>Sales, finance, and customer success teams may not be in favor of refunds due to various reasons.</li><li>However, for startups with less than $10-20 million ARR, allowing refunds might be worth considering to close the deal and prioritize cash flow.</li><li>While the risk is low, it's important to stand behind the product and minimize dissatisfaction among customers who prepaid for multiple years.</li></ul>

Dear SaaStr: Should We Allow Refunds in a Multi-Year SaaS Contract Paid Upfront?

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