On Tue, May 6, 2008 at 4:46 PM, Gil Hale <[EMAIL PROTECTED]> wrote: > > I'd like to get into the annual leasing of my software....to keep a > > residual income coming in. Haven't made that move, yet, though. > > The Magic Words are "recurring license fee", as small part of the > advantage > gained by a business for using your software. The idea for me is to > remove > the up front barrier of custom software, and have the recurring fee so low > it is not a difficult amount for a business to justify, especially when > the > income advantages can be so enormous in comparison. The downside to > jumping > into the recurring license fee game is the loss of the initial large > income > hit you may be used to. I do charge an initial license fee (and normally > no > installation/training fee), but it is not anywhere near what a competitor > may charge. Then again, competitors have to pay commissions to a sales > rep, > I don't need to do that as I am the Sales Rep also <g>. It is so nice > to > be able to run a small business like this... > ---------------------------------------------------------------------
You have to plot the volume of customers over time and see where your $$ is vs the time and energy that your spending in sales and marketing. Verticals are a tough nut to crack. Are you so cheap that nobody will give you a chance, because others sell at 2000. USD + 75/month fees? Is the vertical so overcome with competition that getting enough people at a low volume of money may never get you enough? I am sitting on a similar place myself, well I haven't done the software as of yet ;-> but I am crunching the #s to see if it is worth my time. YMMV -- Stephen Russell Sr. Production Systems Programmer Mimeo.com Memphis TN 901.246-0159 --- StripMime Report -- processed MIME parts --- multipart/alternative text/plain (text body -- kept) text/html --- _______________________________________________ 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.
