> 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.
Actually, a similar situation happened with me a few years back. The difference is that despite what I can wring out of the project, whether in the same form the initial project was coded in or some variation, I feel compelled to make certain I get funds to a fellow developer for his contribution. It was the only time I involved another developer in a project, and although the app ran great the market response was not what was expected - despite the initial "wow" reactions I got with a prototype (which is still in use at several client locations). He and I took a risk on a market for the solution, but the runway came up short at the time. The project is being recoded in a browser environment, but using many of the techniques introduced in the enhanced project a few years ago, hence far less costly for an End User to get into (Server hardware, Windows Server OS, CALs, etc.). Once I see revenues flowing I feel honor bound to get a nice cut back to my associate. I have been able, from time to time, to distribute funds to that gentleman from other projects I saw revenue from. We both learned a lot from that experience (can't always trust the potential End Users' input re: value seen as opposed to putting bucks on the table when the project is ready to deliver, and other stuff). Gil > -----Original Message----- > From: [EMAIL PROTECTED] > [mailto:[EMAIL PROTECTED] Behalf Of Ted Roche > Sent: Saturday, May 19, 2007 9:35 AM > To: [EMAIL PROTECTED] > Subject: Re: [NF] Those who do not study history are doomed to repeat it > > > 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 > > [excessive quoting removed by server] _______________________________________________ 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.
