Michael:  I charge 15% of the original contract amount for "Licensing 
and support" each year after the first year.  This includes all updates 
to the software that are not new modifications and it covers any third 
party licenses I have to pay in the use of the software.

Jeff

Jeff Johnson
[email protected]
SanDC, Inc.
623-582-0323
Fax 623-869-0675

Phoenix Python User Group - [email protected]

MB Software Solutions General Account wrote:
> On Mon, February 16, 2009 12:47 pm, Jeff Johnson wrote:
>> This is the approach I have used for years.  Basically a customer pays
>> for a site license with unlimited use within that site.
> 
> 
> I had started with that idea back in 2004, but then no one had the bucks
> to spend for what I thought it was worth (...what one client--4 or 5
> users--had paid initially).  So then I thought "well, for the single-user
> shop out there, that's not a fair price so I'll price it by user instead
> at a fraction of the site license"...about 1/4 of what I had initially
> asked.
> 
> Here's the #s:
>  2004 site license = $15000
>  2006 cost per license = $3999
> 
> I think my new price will just be a flat $5000 for site license, with a
> $2500 renewal annually for support.
> 
> How do you handle support fees, Jeff?
> 
> I'm trying to structure some sort of recurring revenue model so as to
> better supplement future incomes.  Not sure if I've found that magic #
> yet, though.
> 
> 

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