As a rule, when I send an RFP to vendors on behalf of my clients (for a new AMS, LMS, or other software product), the RFP goes out to no more than five vendors. Why only five and not 10, or 20? There are several reasons, but here are three key reasons:

1. If you receive 20 replies, you'll need to review 20 proposals, which will take a lot of your time.
2. The likelihood of there being 20 different products that can best meet your needs is unlikely. (I'd go so far as to say it's impossible.)
3. And by extension, you'll waste a lot of your time and a lot of vendor time.

So how do you limit your list to five vendors? You call them and talk to them before you send the RFP. Very often a short phone call will help you eliminate vendors on price alone (i.e., their cost is way beyond your budget).

This rule also applies to any other RFP you're sending, by the way. If you're sending your RFP to more than five vendors, you haven't done appropriate vetting!

Pick up the phone and call the vendors before you send the RFP. You'll be happy you did.