How to Close a Sale when a Customer Doesn’t Want to Sign a Contract

One of my biggest challenges as an inside sales person for a small phone company is, if I want to earn commission on a new sale, the customer needs to sign a contract with us. This isn't always as easy as it sounds because there are plenty of customers out there who are simply opposed to signing any sort of agreement.

In fact, out of every 10 customers I talk to, I average 3 who don't want to commit for any length of time. Some of them like the idea of being able to shop around whenever they want. Others don't know if they'll be in business that long and some simply feel I should be offering our best rates on a month-to-month basis.

Overcoming their hesitation is somewhat challenging and there are some that I can't sell to. However, I do manage to ultimately sell to a good portion of those customers by making a little extra effort.

One of the first things I attempt to do is explain how the contract benefits the customer. I believe the majority of customers who hesitate when asked to sign a contract do so because they believe the agreement is one-sided. And, as someone who has read our contracts, I have to admit they do seem that way at first glance.

In my specific case, I can remind the customer we are guaranteeing a certain rate or discount for the length of the contract. This does make my customers much more comfortable when they sign it.

If there's still some doubt, I then take the time to explain exactly why we require the contract. In our particular case, to get lower rates, we have to commit to contracts with our vendors. When I explain it that way, most of my customers do understand why I, in turn, need to have them sign an agreement too.

If all else fails, I look for some sort of extra incentive to offer them. This isn't always possible and what I can offer does vary quite a bit depending on the size of the customer. But, I have found that even a small extra incentive (such as a one-time $10 credit) will often be enough to get a customer over that final hurdle because it shows we are willing to invest in them in order to get their business for the long-term.

As I said before, this doesn't work for every customer and there will be some that won't sign a contract regardless of what I do. But, by making the extra effort the first time they tell me no, I have definitely increased my sales commissions.