> That's where I'd like to take my offerings, too. No (or low) cost up > front, then host the data on my servers for them. If they want out, > then I create an export data file for them (...should be very easy) and > that's it. BUT, my concern is the way I've built software---rock > solid. > This one client is the perfect example--it works great, they need no > changes, so they don't want to pay anything more for the software. The > key to driving home your ideal solution is to make it clear that they > are paying for the LICENSE to use the software. >
The "real key" is to provide "all this, and more..." If a client calls or eMails me with a question, or needs help with a project, I handle it for them. No additional charge. Yes, even with large projects. If they need a new app that falls outside the scope of what they are licensing, that is extra - but nobody complains because I am right there for their every need and question. Do I give up opportunity consulting income? Sure. But I also do not get calls from all clients all the time. It is self limiting to a degree, as nobody has the time to call me constantly. I have made some great life-long friends with these clients, and they trust me. They are not used to dealing with anyone without having to "pay more out", whereas with me they do not fear that. And, in the long run I have a nice, consistent revenue stream each month, no real serious "gotta sell another 'whatever' to make ends meet" oressure, a client bases that trusts and appreciates me, and lots of opportunities to learn more stuff. > If your client wants to stop, Gil, do you give them the data? Well, I only lost 2 clients since 2001 (actually 1991, but I am starting with my first formal VFP commercial app's release in 2001). One was due to a dealership being bought out by another group of arrogant idiots who tossed out all the acquired store had, and migrated them into their own in-0house solution. Those "experts" ended up calling later on begging for their data. I luckily had a recent copy and handed it over to them in both .csv and .dbf format for no additional charge. It was their data, and the previous store had been paying me $800/month for little work on my part. They were clients for 2 years. I could afford to not be a jerk. Last year an RV store of mine lost a long battle in their effort to survive this downturn. They were in a death spiral for almost 4 years. They could not afford to pay my mere $400/month for the last 3 1/2 years before they closed up shop. I never hassled them, as it was not anything involving hard costs. I helped them any way I could right up to the bitter end when I made certain I had all their data saved, and provided it to them (and am storing it on my Servers as well). They had been paying clients for almost 4 years, and again I had to do very little for them in that time period. I refused to be just another nail in their coffin, and did all I could to help them last as long as they did. Besides, the dealer and I became very good friends. That is the downside of having a client become a friend I guess, in the short term analysis. In the final analysis, however, I can face myself and know I did the right thing for the right reasons. Were I to lose a client, to answer your question, I would certainly hand over "their" data. Rather than focus on why I would be getting The Boot, I would prefer to focus on the past times when things were good for all concerned. And hopefully my attitude would speak well of me as a person. Also, were a client to boot me, and later decided they really do need my help again, I would not want to have them remember me as a jerk. I have a strong reputation of being a decent guy to work with. My business model allows me to be able to afford to be like that. > Otherwise, the question becomes: "who owns the data?" By hosting the > data on my servers and just giving them a license, I think that > entitles > ownership (somewhat) to me, but of course many client-side advocates > would argue otherwise. My attorney would tell me that unless I had a signed agreement stating any data I process magically becomes mine, and some fool signed such an agreement, the data belongs to the client. On the other hand, the technology needed to store and retrieve the data might be mine, and were I inclined to charge for retrieving the data, whatever format I chose to hand the data over in would be subject to how one decided to pay me. For me, I prefer to avoid that kind of petty battle. It is not worth the margin. On the other hand, if a client was being a jerk, owed me back money, had refused to pay because he/she was being an idiot, had been abusing my goodwill, etc., there just may be some kind of fee for data retrieval, to include decrypting said data as certainly I would be saving it in an encrypted format! I choose my clients carefully. I do not see that happening. If it did I would likely just hand the data over, wishing I could be as big a jerk as the "bad client", but realizing I am the better person for not lowering myself to his/her level. I would, of course, have the parting shot along the lines of, "Nobody says I have to be nice about this, but I choose to be. This will haunt you until you draw your last breath, the fact you abused a person who was nothing but kind and considerate of you." Yeah, that's the ticket! Gil > > -----Original Message----- > From: [email protected] [mailto:profoxtech- > [email protected]] On Behalf Of MB Software Solutions General Account > Sent: Monday, April 13, 2009 1:00 PM > To: [email protected] > Subject: Re: [NF] Yearly support fees vs. hourly fees > > Gil Hale RR wrote: > > I do not sell annual or other maintenance plans, and avoid that kind > of > > terminology like the plague. It makes it too easy for folks to > unplug a > > nice revenue stream. I do not sell my software solutions either. I > provide > > "maintenance" (support) on a No Additional Charge basis! What the > hell? > > Read on... > > > > I license my software solutions with an initial setup/config fee > which is > > minimal - really minimal. Sometimes no initial fees at all. Then I > charge > > a reasonable monthly license fee, where over the course of a few > years I > > recoup what I would have gained with an initial full fee for a single > pay > > billing. But, for the remaining months/years I keep receiving these > monthly > > payments for a client having the right to keep using my software, and > > gaining income benefit far in excess of its monthly license fee. I > also > > provide support/maintenance on a No Additional Charge basis for > clients > > paying me a monthly recurring fee. I can come in very inexpensively > for my > > clients with respect to how their cash flow gets hit, and in the > longer run > > I end up generating far more revenue from my offerings. For > instance, I > > have one client who has been paying me $1,000 per month for 43 > dealerships > > to use my software (very inexpensive on a per store basis). They > have been > > with me since 2001, just about 8 years, 96 months. Do the math. I > could > > never have charged them that kind of money for that solution, despite > it > > being well worth the investment. This kind of arrangement makes my > software > > cost effective on both a monthly cash flow and a return on investment > basis > > for my clients. And it gives me monthly incentive to keep doing the > best > > possible job I can for them. When they request upgrades or > consulting I > > handle those items on a no additional charge basis, whether it is > directly > > related to my solution or not. For all the months I have had to do > nothing > > for the income as they keep on using it internally with their own > personnel, > > a few weeks here and there for special projects is fine with me <g>. > The > > name of the game now-a-days, more than ever before, is client > retention and > > revenue stream protection. This is how I am accomplishing it, > providing > > excellent solutions for beyond reasonable pricing, and not trying to > nickel > > and dime a client at every turn. I get my recurring revenue stream > from > > multiple clients, they get my attention whenever they need anything > extra - > > plus make and/or save money using my software in excess of the > revenue they > > provide me. If they begin to clip services in a tough economy I am > betting > > I will be the last vendor standing as I not only make them money, I > ask for > > relatively little in return. But when I sum the income from all > clients > > each month I find I am doing just fine, without having to chase the > next > > dollar while needing to ignore my current clients in the process. > > > > Of course, one can't simply flip a switch and migrate to this kind of > model > > unless there is enough cash on hand to survive the initial lean > months as a > > core client base is built. I was lucky in being able to bide my time > as I > > built my business around this model. I know another FoxHead who > chimes in > > once in a while in ProFox who has begun to adopt this kind of > business > > model. He has a full time (or more <g>) job, and can afford (from > what I > > can tell) to take his time in building up his client base on the > recurring > > fee and minimal initial charge business model. If he continues to do > an > > excellent job for his clients, and he grows his business a bit at a > time, > > keeps his overhead low (work out of the house), his "side income" may > well > > exceed his employment income in time. Other folks may have a spouse > whose > > income can help with the reduced income as one transitions from full > up > > front billing to a smaller initial billing with recurring fee billing > model. > > For others yet it may have to be a matter of offering the smaller > initial > > fee with recurring fees on a situational basis for some offerings, > but not > > all. > > > > It is not for everyone, but from where I stand this is the ultimate > win-win > > for myself and my clients. > > > > My two cents... > > > That's where I'd like to take my offerings, too. No (or low) cost up > front, then host the data on my servers for them. If they want out, > then I create an export data file for them (...should be very easy) and > that's it. BUT, my concern is the way I've built software---rock > solid. > This one client is the perfect example--it works great, they need no > changes, so they don't want to pay anything more for the software. The > key to driving home your ideal solution is to make it clear that they > are paying for the LICENSE to use the software. > > If your client wants to stop, Gil, do you give them the data? > Otherwise, the question becomes: "who owns the data?" By hosting the > data on my servers and just giving them a license, I think that > entitles > ownership (somewhat) to me, but of course many client-side advocates > would argue otherwise. > > > -- > Mike Babcock, MCP > MB Software Solutions, LLC > President, Chief Software Architect > http://mbsoftwaresolutions.com > http://fabmate.com > twitter: mbabcock16 > > > > [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.
