Advice for implementing software in USA

I've created an VB.NET application which I can implement in USA with the aid of an Sales Agent.

The tricky part is that the software itself will be free ... I will implement it for free to a BIG CUSTOMER. The real customers which will pay money are clients of BIG CUSTOMER.

So me and the BIG CUSTOMER will make money based on the subscription of those clients.

My problem is what payment schema should I implement so everybody will be happy. And also what kind of contract should I make and with whom

THank you

Without knowing a bit about the program it's hard to offer solid advice.

If you are supporting the app for the little-clients then I would think that your "share" should be more 70/30. If you are simply letting the bigger client sell to the smaller client and expect a royalty then you are looking at a smaller percentage - right?

I have some "re-sellers" of my products. I got paid big $$'s upfront to develop (they also charged the buyers biggers $$'s and thus made a profit). At first they were first-line support - and I got a smaller annual fee. This year we became first-line support and doubled our annual fee. The "re-seller" is still hosting the app so they still charge the little clients. Eventually those little-clients will bring the app/DB in-house and pay me directly.

szlamany,

First of all thank you for your response ... and also sorry for being so vague ... but I have a solid reason why I did so ... I had an US sales agent who quit on me after I explain the ideea behind my software ... I'll not be surprised if he tries to copy it ...

I will try to explain it without saying exactly what is about ...

I made the application in VB.NET for me to have as little problems with licensing as possible. But this is another issue.

The application will be installed on the BIG CLIENT computer by me remotly and I will also assure support for it. The cost for the application is free for the BIG CLIENT because :

1. BIG CLIENT will get me SMALL CLIENTS
2. The datas SMALL CLIENTS need are inputed by BIG CLIENT

I will earn money from the SMALL CLIENTS by subscription ... but I will share the money with BIG CLIENT 70/30 or more .... ( for me :D )

Well this is the schema ... but frankly I have no ideea what kind of contracts should I make and with whom ... Should I make with an sales agent or with the BIG CLIENT ... or maybe SMALL CLIENT ...

And another problem is how I get the money from subscriptions ...

Hope some one understands my problems and help me on this ...


Thank you in advance

I got a PM from Makko - which I answered - but thought I might post it here as well so that others might come along and offer some insights

Quote:

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Originally Posted by szlamany

I did see your post. I was hoping that others might come along and offer advice.

We deal with large enterprise customers - those who would not be likely to take advantage of us or steal concepts behind our backs.

The "re-seller" I mentioned is really a "regional cooperative" for small school districts in rural areas. They help those small school districts aquire what would normally be too expensive or too complex applications that we happen to market.

We also deal directly with larger school districts and towns.

So basically our situation is unlike yours.

Do you feel that the larger customer you will be dealing with has a vested interest in protecting your proprietary rights? If they do then you would want the contract to be with them.

If they don't then you would need the contract to be with the small companies.

But that's only my opinion - certainly not a true legal opinion.

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szlamany,

Thank you again for responding. In the last post you said somewhere "So basically our situation is unlike yours" ... but I have to tell you that my application can be implemented very easy in schools. So in a way your situation can be mine too.

If there are no conflicts of interest between the two of us from your point of view, I would like to ask you how can I get in touch with such of re-seller ( an regional cooperative ).


Makko

Schools in the USA - at least in the states we deal with - come in two forms.

1. They are large enough to have their own IT departments. School like this we "sell to" through going to tradeshows - usually tradeshows that the Business Managers go to (ASBO is the national/international "Association of School Business Officials" - each state has their own chapter). We push our product to the business managers and IT folk walking by - get business cards - then make phone calls. Doing this takes usually 18 months from first contact to sale - it's a slow process since we sell "district wide" solutions.

2. They are small and their area has a "regional cooperative" administrative unit - basically a big "shared" IT department. We either already have 20 years of experience with these players so they contact us or we meet these same people at the same tradeshows mentioned above. The "regional cooperatives" are not re-sellers in a sense that they make a sale for us and walk away. They forge long term relationships with their school districts - some go as far as to supply "internet" access and "domain management" for many, many school districts in their region. They want to give their "districts" good solutions that keep them in the fold - otherwise they might get their own IT dept's and walk away from the coop.

If you are looking for a "re-seller" - an agent that makes a sale for you - takes a percentage - and then lets you manage the customer from that point forward I've got no contacts to give you.

If your product is "directed" at the K-12 grade school districts in the USA - I cannot imagine how you could make sales without a presence here.

But again - I've got no idea what your app is like - what $$'s it might cost (monthly, annually - or one time).

Is it administative or instructional software?

my soft is administrative and it can be implemented in a numerous type of fields not only in schools