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Fees

Common Paper Software License Agreement term: Fees

Mark Frantz avatar
Written by Mark Frantz
Updated over 4 months ago

Fees is a variable that appears in the Software License Agreement Cover Page, in the Order Form section. This section is for your agreements' key business terms.

How to fill this out

First, you'll need to choose how you wish to structure your fees.

Do you want to show the fees monthly, yearly, per Subscription period (see the Subscription Period term) or a custom unit. The custom unit option is good for timeframes like quarterly or semiannually.

Pricing Models

Once you've chosen a fee structure, you can construct your pricing table using a variety of different pricing models. You can add as many of these models as you need.

Flat Fee

Use this model to charge a set amount of money over the duration you picked in the fee structure section.

Example: Platform fee $100

Price with Quantity

This model is used when you are selling a set number of units at a certain price upfront in the contract.

Example: 10 Users at $10 per user

Usage based/Metered Pricing

Use this model when you are setting a fixed price for a quantity of items, but the customer will only be charged for the items they actually use. Usage based billing is usually done in arrears.

Example: Active Monthly Users at $10 per user

Graduated Pricing

Use this model when you are setting a fixed price for a quantity of items, but the price changes as the quantity increases, and the customer will only be charged for the items they actually use. Usage based billing is usually done in arrears.

You can set either/both a unit cost, and a flat fee for each tier.

Example: API Calls cost a flat $100 and $.05 each for the first 1,000, $0.04 for the next 1,000 and $0.03 for any beyond that.

Included (free) Item

This model allows you to add line items that are included with the subscription. You can optionally add a quantity to these items.

Example: Priority Tech Support Included

One-time Fee

Sometimes you have fees that are only charged once in a recurring subscription - these items will be shown separately from the recurring charges.

Example: Implementation Fee. $1,000

Discount

Use this model to add any discount line items to your pricing table. Discounts can be expressed as a dollar figure, or as a percentage. You'll also have the option to specify a duration:

  • Once is a one-time discount

  • Multiple months will apply the discount for any invoices that fall within this duration

  • Every month applies the discount on every invoice

Example: Springtime Discount 10% (Once)

Describe Using Free Text

This model lets you add any text that you'd like under the pricing table. It can also be used in place of the pricing table if, for example, your pricing scheme is more complicated than the models above can accommodate.

Add As Attachment

You can use this model to attach documents when you have pricing outlined in a separate document, or want to provide additional details about your pricing.

Previewing your Fees

As you enter your pricing information, the MagicBill preview will update with how Common Paper is interpreting your pricing.

Additionally, you can click the Preview your fees button to see a pop-up window that will display how your fees will look in the finalized agreement.

Here's an example using the pricing models above:

Additional Options

Taxes

Do your fees already include all of the relevant taxes?

Default: No

Renewal fees

Do you want to include a scheduled increase of your fees automatically each time this contract renews? Will it automatically increase or it just might? By how much?

Default: No

Tip: If you select "no", you should provide notice of any increase in fees before the Non-Renewal Notice Date window.

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