Re: Sofware selling - need help!

Bruce Lee wrote:
A leading mobile provider is looking to buy my midp application so they can
put it on phones in their market. They say it can either revenue share or
outright sale. I'm looking at revenue share what kind of percentage would I
be looking at here? Thanks a lot



My gut reaction is that net revenue can be a slippery subject. All the company has to do is claim that it lost money on the product and you'd get nothing. Many popular musicians made little from sales of their products because the record companies took out such a large percentage for marketing and distribution.

In my experience, smart inventors charge a flat rate per sale. $0.25 per sale, $0.10 per sale, even one cent per sale could add up to a lot if the numbers are high. (If the numbers are large, like over 100,000 per month, expect $0.25 per device sold to be very high and probably right out.) Important hint: find out what sales numbers they are projecting.

You could always go with a combination. $$$ up front and $ per sale. Money now is always good money. Remember Wimpy was always happy to pay on Tuesday for a software product today.

Don't forget to ask your tax accountant for advice also.
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