On 5/19/07, Bill Arnold <[EMAIL PROTECTED]> wrote: > > But suppose on the other hand that you've already developed software for > a vertical market, it's eaten your bank account, and you have no money > left to pay for marketing - what do you do then?
It's a legitimate question. I have worked with clients who have "run out of runway" while launching what should be a profit-making project. They would have been grateful if I could take on the project at no cost, under a promissory note, or with long payback terms. The best deal is when you can promise a developer some percentage of future returns, often a percentage you can dilute to nothing should the business ever make a profit. > Take this guy http://www.trackum.net/projects.htm for an example. He > says "Your only responsibility will be to maintain the source code. We > will market the product, support it, and send you a royalty check every > month." > > Is this a scam? Maybe, maybe not. It would require an investigation of his customers, due diligence on how he conducts his business. In a sentence, this guy buys vertical-niche apps and markets and resells them. If he's on the up-and-up, at the least you'll want to be able to audit his sales, or perhaps track the installations of your app yourself. Bear in mind that the terms are likely that you are giving up any ownership of the application, in exchange for a (small) percentage of sales that leave him with a healthy profit margin to cover his expenses and risks. You're probably also still responsiblefor tech support costs, too. Lots to consider. -- Ted Roche Ted Roche & Associates, LLC http://www.tedroche.com _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
