Software Escrow Top 10 List (Letterman Style)
Posted by Christine DeFazio on Thu, Feb 24, 2011
Top 10 signs you chose the wrong escrow vendor
#10 The vendor has an office - in their house. Size does matter! Too small and they could be running an escrow business out of their home. Too large and you could end up being just another number because they dont' specialize in escrow.
# 9 They're not a neutral third party. The transaction needs to be in the best interest of all parties involved and the vendor should be unbiased and merely there as a provider of escrow services.
#8 Your source code is being stored in any of the following: a basement, a bank vault, a closet . . . do you know where you're IP is being held? Do you have access to your money maker?
#7 Al a carte costs. Software escrow isn't like ordering off the drive-thru menu! You want a vendor that will have fair pricing and a great combo meal. Chances are you don't want to be hit with hidden costs.
#6 Every time you call customer service, you hear a new voice. Sam, Carla, Norm, Cliff . . . Who doesn't want the Cheers experience? Where everyone knows your name.
#5 They're new or up and coming. Too much room for error is what I hear. Do they have references or for that matter, clients? How long have they been in the industry? What is their background? You want an escrow vendor with a stable history and most importantly positive client feedback. Always check out the testimonials. If you can't find them or they can't provide any, keep it movin.
#4 Creating an agreement is like running a three-legged race BACKWARDS. Your vendor should allow you to customize your agreement based on your specific needs. There is no such thing as a cookie cutter agreement and if they tell you there is - run (FORWARDS)!
#3 Their limitation of liability is capped. Remember that saying, "too bad, so sad," well it's sort of the same. During the research stage many people forget to question the vendor's LOL. This leaves you asking, what is my IP worth to me? Or in this case, the person responsible for protecting it.
#2 They are the cheapest vendor you could find. Listen, since the beginning of time we've been clipping coupons and today we may be clipping Groupons and there's no shame to our game. Smart shoppers are savvy shoppers, but savvy doesn't mean cheap. As I've mentioned before, "you get what you pay for." Shop around and research for sure, but just remember the right questions to ask and that this person will be holding one of your most prized possessions - your intellectual property.
And the #1 sign you chose the wrong software escrow vendor . . .
"It's who everyone uses!" Ok, flashback time . . . I'm sure at one time in your life a teacher or parent said to you "if all your friends were to jump off a bridge, would you jump too?" Word of mouth is great but don't jump without doing your research first. It could lead to a bumpy road.
What made you choose your current vendor? What questions do you have about shopping for an escrow vendor? Share your thoughts!