Monday, February 28, 2005

Extranet Pricing and Vendor Selection

When considering a legal extranet vendor, be sure to ask about the pricing structure.

Subscription based pricing is better than pricing with large upfront expenses. Per site pricing is generally better than per seat (per person) pricing. Try to avoid implementations with high implementation fees for system setup and configuration. Try to avoid pricing structures with significantly high incremental costs for large volume amounts.

But, after taking all of these factors into consideration, also remember that the legal extranet vendor has invested considerable time and money building the system you are interested in using. If it has all the features that you want and is easy to use, that obviously occurred at a cost. The key with pricing is to be sure that you as a client have a predictable and fair cost for the services you will be receiving, with limited exposure to unexpected or unanticipated costs, but also that the price is also appropriate so the vendor recaptures a portion of their programming and operational expenses and makes a modest profit providing this service to their clients.