Recently, I’ve heard from more and more people expressing frustration about being trapped in long-term contracts with web agencies. These contracts are often non-cancellable for the entire contract period. Many of the people I’ve spoken with report that the service they’re receiving doesn’t meet their expectations at all. Unfortunately, this isn’t too surprising, as most people only feel the need to speak out when they’re dissatisfied. It’s rare to hear from people who are happy with a long-term contract.
I recently saw a LinkedIn post where someone described how the service they received was both absent and directly harmful to their business. I’ve also heard about entrepreneurs who had to close their businesses but are still stuck in a contract years later.
This problem often arises because contracts are designed to protect the provider more than the customer, and many small businesses lack the legal resources or experience to negotiate better terms or thoroughly review the contract before signing. There’s also often an element of trust involved, where clients don’t expect the provider to fail in their responsibilities.
Of course, there are many agencies with long-term contracts whose clients are happy with the partnership. Unfortunately, there are also companies that use long contracts intentionally to lock in clients. It raises the question: why do they feel the need to bind other businesses to long, non-cancellable contracts?
To me, this borders on exploitation.
Do businesses themselves have a responsibility? Yes, of course. But it’s not always easy to tell if this is common practice when looking for a new website for your company. You might even be told it’s standard in the industry. But it’s not. Fortunately, there are many agencies and freelancers who operate ethically, where clients stay because the service or product meets their expectations. That’s the model I believe in.
If you do choose to enter into a long-term contract, there are several steps you can take to protect yourself as a business. First and foremost, make sure the contract includes clear exit clauses that allow you to terminate the agreement if the provider fails to fulfill their obligations. It may also be wise to include provisions for ongoing evaluation of the partnership and the ability to adjust terms if the service level isn’t satisfactory. Additionally, you might consider negotiating a shorter initial period, where the contract can be terminated on short notice before committing to a longer term.
With me, you own the solution once the handover is complete. The only type of ongoing contract you may have afterward is a hosting and/or service agreement — but these can be canceled with one month’s notice.