By Matt Lhoumeau, CEO of Concord

Last week, I watched a promising deal fall apart. Not because of price. Not because of product fit. But because the moment we sent over the contract, our enthusiastic prospect went radio silent.

Sound familiar?

After 10 years building Concord and working with thousands of SMBs, I've discovered something fascinating: Even our most eager customers experience a visceral, almost primal fear when they see a contract. It doesn't matter if they've been begging to buy for weeks. The moment that PDF lands in their inbox, something shifts.

This isn't about bad contracts or predatory terms. This is about psychology.

The Anxiety Is Real (And It's Not Going Away)

According to research from the Anxiety and Depression Association of America, workplace anxiety affects 40% of Americans daily. When you add contracts to the mix—documents that carry legal weight, financial commitments, and potential long-term consequences—that anxiety multiplies.

I've seen CEOs who negotiate million-dollar deals freeze up when asked to sign a simple SaaS agreement. I've watched procurement professionals who review contracts daily still feel their heart rate spike when it's their company on the line.

The fear isn't irrational. It's evolutionary. Contracts trigger the same fight-or-flight response our ancestors felt when facing unknown threats. The only difference? Instead of a saber-toothed tiger, it's a 30-page MSA.

Why Even "Simple" Contracts Terrify Smart People

Through conversations with our customers, I've identified five core psychological triggers that make contracts feel threatening:

1. The Permanence Paradox In a world where we can undo almost anything—unsend emails, edit posts, cancel subscriptions with one click—contracts feel disturbingly permanent. This psychological weight creates decision paralysis, even for routine agreements.

2. The Expertise Gap Most business professionals aren't lawyers. When they see legal language, they feel instantly out of their depth. It's like asking someone to sign a document written in a foreign language—even if there's nothing controversial, the unknown creates fear.

3. The Asymmetry Assumption People automatically assume the other party knows more about the contract than they do. This perceived knowledge imbalance triggers defensive behavior. They think: "What am I missing? What don't I understand?"

4. The Spotlight Effect When someone signs a contract, they feel personally responsible for anything that goes wrong—even if it's a team decision. This "psychological spotlight" makes the signing moment feel disproportionately significant.

5. The Sunk Cost Amplifier Paradoxically, the more someone wants something, the more anxious they become about the contract. High emotional investment amplifies the fear of making a mistake.

The Hidden Cost of Contract Anxiety

This psychology doesn't just slow down deals. It fundamentally changes how businesses operate:

●      Sales cycles extend by an average of 23% once contracts enter the picture

●      60% of SMBs delay purchasing decisions due to contract concerns, not product issues

●      Deal momentum dies as prospects retreat into analysis paralysis

●      Relationships strain as enthusiasm turns to suspicion

But here's what really keeps me up at night: For every customer who eventually pushes through their contract anxiety, how many simply walk away?

From Fear to Confidence: A New Approach

At Concord, we've spent years studying how to transform contract anxiety into contract confidence. The solution isn't just better technology—it's understanding and addressing the psychology behind the fear.

Here's what actually works:

1. Acknowledge the Elephant in the Room

Don't pretend contracts are fun. When you acknowledge that contracts can feel overwhelming, you validate your customer's experience and reduce their defensive posture.

Try this: "I know contracts can feel heavy. Let's walk through this together so you feel completely comfortable."

2. Create Visual Anchors

Our brains process visual information 60,000 times faster than text. Using contract automation software to create visual workflows, highlight key terms, and show progress can transform an intimidating document into a manageable process.

3. Break the Monolith

A 20-page contract feels insurmountable. Ten 2-page sections feel manageable. Smart contract structuring reduces cognitive load and makes the review process feel achievable.

4. Humanize the Language

Every piece of legalese increases anxiety. While some legal language is necessary, explaining terms in plain English alongside the formal text reduces the expertise gap.

5. Provide Psychological Safety Nets

Offering review periods, clarification sessions, and clear amendment processes gives people escape routes. Paradoxically, knowing they can change their mind makes people more likely to move forward.

The Trust Multiplier Effect

When you successfully help someone overcome their contract anxiety, something magical happens. They don't just become customers—they become advocates.

I've seen this repeatedly: Companies that invest in reducing contract friction see:

●      Higher customer lifetime value (anxious customers who feel supported become loyal customers)

●      Increased referrals (people remember who made them feel safe during vulnerable moments)

●      Faster subsequent deals (trust compounds over time)

This is why forward-thinking companies are using contract analytics software not just to track terms and obligations, but to understand signing patterns, identify friction points, and continuously improve the contract experience.

A Future Without Fear

I believe we're approaching a tipping point. Just as e-signatures went from "scary new technology" to "standard business practice," we're about to see a fundamental shift in how people relate to contracts.

The companies that win won't be those with the cleverest legal terms or the most sophisticated CLM platforms. They'll be the ones who understand that behind every contract is a human being trying to make a good decision while managing their very real, very human fears.

At Concord, we're building for that future—one where contracts enable business instead of blocking it, where legal agreements create clarity instead of confusion, and where signing a contract feels like the beginning of a partnership, not a test of courage.

Because at the end of the day, contracts aren't really about legal protection. They're about human relationships. And the moment we remember that, everything changes.

Matt Lhoumeau is the co-founder and CEO of Concord, a contract management platform used by over 1,500 companies worldwide. Before founding Concord, Matt experienced firsthand the pain of managing contracts manually while working at a $5 billion telecom company, inspiring him to transform how businesses handle agreements.