In 2009, I looked into adding to my repertoire of services the capability of hosting webinars, conducting virtual meetings and facilitating distance e-training via web conferencing. At the time, there were three major players in that market who were all promoting their products and services with vigor and highly competitive pricing. Technological advances in the web-conferencing arena came fast and furious back then, and the demand for these products was off-the-chart.

After much research on the pros, cons and differences between the three, I decided on the one that boasted about being the inventors of such technology, the one that will continue to provide innovative, cutting-edge improvements and the one that would be “at my side” as I grew my business using web conferencing. Take a look at what this company says on its website about what makes them different:

“From the beginning of your experience with (name withheld), we put you and your audience center stage. Our employees are there every step of the way to understand your objectives for any type of event, help share best practices, and guide you to the best solution to achieve your goals. Your success is our primary objective, and we will work with you to ensure your team’s success. Being politely obssessed (sic) with service means our people, processes and technology are all focused on YOU!”

Sounds like a can’t-miss partner, doesn’t it? I was stoked. But, when I made the call to give my verbal commitment to them, my two-year nightmare began. First came the presentation of a very restrictive, auto-renewing, annual contract. I signed it with a hint of regret, but I thought “Hey, if they are half as good as they claim to be, this is a no-brainer.”

When I began to access the web conference control panel and set-up my first virtual meeting, I soon found out I needed a Ph.D. to interpret the commands—and I consider myself to be fairly computer savvy. When I called for technical support, I soon found out that was an extra charge—even for a brand-new client. After several other attempts to try to master the product with equally dismal results, I stopped trying. In the first twelve months of the contract, I could count on one hand the number of times I logged on and held a web meeting. Forget about trying to host a webinar—that would have been an embarrassing disaster.

To add insult to injury, I was never notified that my annual contract was up for renewal, and I missed the deadline to terminate the agreement. Hence, I was locked into another twelve months of a service I didn’t know how to use, didn’t have a strong need for, and with a vendor for which I had lost all respect. I attempted to opt-out of the contract several times during the second year and was sternly told nothing could be done about it until the annual contract expired. The best comparison I could make of the experience is it was as if I enthusiastically signed a long-term contract for a gym/fitness center only to find out I had no aptitude for operating the sophisticated equipment and stopped going to the gym due to frustration. Ugh, what a waste of money!

Taking the perspective of the web-conferencing company, in this case, here are the valuable business and customer service lessons that could have been learned:

1. Don’t force customers into severely binding contracts unless it costs you the entire value of the contract up front and the installment that the customer pays over the term of the contract is your means of recouping your costs. (Note: I asked about that and was told it was not applicable in this case.)

2. Periodically check in with customers—particularly new ones or ones that are grossly under-utilizing your service—to gauge their satisfaction with your products and services. Having them under contract is no excuse to not have some contact with them from time to time. Even hostages are looked in on occasionally.

3. If a customer is in the wrong product for their situation, initiate moving them into a more suitable alternative. It’s better to lose a little revenue and save a loyal, happy client than to alienate them completely and lose all of their business to a competitor.

4. Finally, use some common sense when it comes to the price, deliverables, terms and conditions of a contractual agreement. The two signatures on that document should acknowledge and represent a mutually beneficial partnership, not one where one party has the upper hand and the other is subservient.Good luck.