“You should consider selling long-term contracts. Investors like companies with contractually guaranteed recurring revenue. SaaS companies get better valuations.”
A good friend gave me that advice about 10 years ago when he visited Austin.
We were both engineers once. By then, he had become an investor.
Over dinner, he explained the logic: predictable revenue receives a higher valuation.
I understood the financial argument. For SaaS, that can make sense.
But it raised a question for me:
Talroo is a job advertising business. Employer demand depends on hiring needs. If a customer is not hiring, should we still be charging them because a contract says so?
The conversation revealed a deeper belief in me:
Long-term customer relationships should be earned, not handcuffed.
Otherwise, what motivates a team to serve with urgency?
That reminds me of golf.
There are two types of iron clubs: cavity-back and blade. Cavity-back irons are more forgiving and easier to hit. So who chooses blades?
Better players.
They choose a less forgiving club because it gives immediate, unfiltered feedback on mistakes.
Companies need that same kind of feedback.
When a customer cuts their budget, it sounds an alarm. That signal forces us to improve service, strengthen the product, and move faster.
Because customers are free to leave, Talroo has to earn trust again and again.
I would rather build a business that wakes up every morning knowing it must keep proving value.
If customers stay, it should be because we helped them hire better, not because we made leaving difficult.
It’s a brutal way to run a business when the market turns. But it’s the only game worth playing if you actually want to stay sharp.
#TalentAcquisition #HRTech #FounderMentality #BusinessStrategy
