Having gone through the dot com craze where IPOs were plenty and everyone was offering stock options and a "piece of the pie" - I will NEVER work for a percentage of sales again ;-)
I am talking about charging a licensing fee for your software - has NOTHING to do with the customers sales (other than you may want to have tiers of monthly charges for various levels of transaction volume). Don't get caught up in their sales or your hosting costs - it is software as a service (SaaS) - Microsoft doesn't ask for a piece of the $ their clients make using their software - they charge what they think it's worth and enough to make them a profit (MS bashing aside....and yes I'd be on that bandwagon). The way I handle it (as my system is customized for most new customers) is that I charge my cost to do the customizations (or do them for free if they are not too over the top). Then I make my money on recurring revenue froma per transaction fee I charge to access to my system and the professional services that come with it. As long as I am getting my fee I enhance the system for free and add reports and other customizations for free. Those are the broad strokes. In other words - give them the razor (install/config/test/launch services) and then sell them the blades (your monthly fee for as long as they use you). Hope that better explains what I was on about ;-) Cheers *Bryan Stevenson*B.Comm. President & CEO Electric Edge Systems Group Inc. - makers of FACTS^(TM) phone: 250.480.0642 cell: 250.920.8830 e-mail: br...@electricedgesystems.com <mailto:br...@electricedgesystems.com> web: www.electricedgesystems.com <http://www.electricedgesystems.com> and www.fisheryfacts.com <http://www.fisheryfacts.com> ------------------------------------------------------------------------ Please consider the environment before printing this e-mail -----CONFIDENTIALITY------ This message, including any attachments, is confidential and may contain information that is privileged or exempt from disclosure. It is intended only for the person to whom it is addressed unless expressly authorized otherwise by the sender. If you are not an authorized recipient, please notify the sender immediately and permanently destroy all copies of this message and attachments. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-talk/message.cfm/messageid:358558 Subscription: http://www.houseoffusion.com/groups/cf-talk/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-talk/unsubscribe.cfm
