CLM Buyer’s Guide: How to Spot and Avoid Common Traps

September 20, 2024 • Contract Management • 6 minutes

Finding the right contract management solution (CLM) can be tricky. Some vendors promise shockingly low prices and fantastical feature sets, making it hard to tell what’s real and what’s pure marketing fantasy. As the saying goes, if it sounds too good to be true, it probably is.

This CLM buyer’s guide will provide you with critical questions to ask during your next CLM demo to uncover hidden fees, limitations, and overhyped promises that don’t deliver.

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1. The “Name Your Price” Trap – Unforeseen Costs

Certain vendors offer a “name your price” strategy, making you feel in control of your budget. It seems cost-effective at first, but once you commit, essential features like custom templates, integrations, and reporting are suddenly added as extra fees. What looked like a bargain becomes an out of control budget nightmare.

Questions to Ask:

  • What features are included in the base price, and what will cost extra later on?”
  • “Can you provide a detailed breakdown of a typical customer invoice, including any fees beyond the initial price?”
  • “What is the total cost of ownership over 1-3 years, considering necessary features and integrations?”

The Truth: This pricing model is designed to get you onboard with a low initial cost, but as your needs grow, so do the additional fees. For finance teams focused on precise long-term budgeting, this unpredictability causes financial strain and difficulty managing total costs effectively.

Why Concord is Different: Concord offers transparent, all-inclusive pricing. Features like unlimited document storage, electronic signatures, and templates come standard—no hidden costs. Our pricing model supports your long-term budgeting strategies, keeping your contract management predictable and manageable

2. Overpromising AI Capabilities – The Reality of What AI Can Deliver

Artificial intelligence has become a powerful buzzword in the contract management space and many vendors will promise advanced AI features that sound groundbreaking. The reality is often far less impressive. AI can absolutely help automate certain tasks, such as metadata extraction, and auto-populating
third-party data, but some providers overstate what their AI can truly achieve. They might claim their AI can handle complex decision-making, risk assessment, or even fully automate contract management, but these capabilities are still far from reliable.

Questions to Ask:

  • “What specific AI functionalities are included in your platform?”
  • “Can the AI automatically review and manage the entire contract lifecycle?”
  • “What real-world tasks can your AI reliably handle today?”
  • How does your platform handle customer data privacy, and do you use client data to train your AI models?

The Truth: Many vendors inflate the promise of AI to make their product stand out. Claims that AI can fully automate contract management, reduce all risks, or predict future issues are often misleading. The technology, while evolving, is still limited to more basic tasks like recognizing key contract terms or generating reports based on predefined parameters. For more complex tasks, human oversight is still required.

Why Concord is Different: Concord takes a transparent, conservative, and honest approach to AI. We provide AI tools that assist with practical, real-world tasks such as metadata extraction and contract term identification, but we don’t overpromise. Additionally, we prioritize your data privacy with a zero data retention policy, ensuring that your private data is never used to train our AI models. We believe in AI’s potential, but we’re clear about its current limitations. Our platform focuses on delivering reliable, practical AI features that add value without misleading you.

3. Implementation Timelines – How Long Will It Really Take?

Lengthy implementation timelines can derail your entire contract management strategy. Vendors catering to large enterprise clients often require 6-8 months or more for full implementation. Getting stuck in this extended process can drain your team’s morale, slow productivity, and hinder overall adoption of the system.

Questions to Ask:

  • “How long does it typically take to implement your CLM solution?”
  • “What support do you provide during the implementation process?”
  • “Can you share examples of customers who completed implementation within the expected timeframe?”

The Truth: A long and complex implementation process can delay the benefits of the CLM solution, causing friction and wasted resources. Knowing the timeline upfront helps avoid unnecessary setbacks.

Why Concord is Different: Concord’s implementation process typically takes just 3-4 weeks for new customers. Our dedicated team provides all the necessary support for a smooth rollout, helping you get up and running without extensive delays.

4. Certifications and Compliance – Are They Up to Standard?

Data security, and compliance certifications are critical, especially if you operate in an industry with strict regulations. Many providers might claim to be compliant but lack key certifications that protect your business from legal and financial risks.

Questions to Ask:

  1. “What certifications does your platform have, and are they up to the latest compliance standards (e.g., HIPAA, GDPR, and 21 CFR Part 11)?”
  2. “Where are your data centers located, and do you allow clients to choose where their data is stored?”
  3. “How does your platform handle data privacy and security at the application level, not just the server level?”

The Truth: Some vendors simply lack important and necessary certifications like AICPA SOC 2, HIPAA, or 21 CFR Part 11, putting your organization at risk of costly fines and data breaches. Without these standards, their solutions may fall short in providing the data privacy and security you truly need.

Why Concord is Different: Concord’s servers are compliant with AICPA SOC2 Type 2, ISO 27x, FedRamp, PCI DSS, HIPAA, FIPS, FISMA, CSA, and 21 CFR Part 11, and HIPAA , and we offer control over data storage locations. Our platform prioritizes security at every level, making us a reliable choice for contract management in regulated industries.

Conclusion: Ask the Right Questions, Make the Right Choice

Finding the right CLM solution is more than just comparing feature lists and prices. It’s about asking the right questions to uncover potential traps, hidden costs, and overhyped promises. Use this guide to dig deeper in your demo calls and get the clarity you need to make a smarter decision.

Ready to see what true transparency looks like?

Schedule a demo with Concord today to learn how our all-inclusive pricing, practical AI, and rapid implementation can help your team work smarter—not harder.

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