When selling my software question

[Avatarp]

If I am sellingmy application I understand how I structure it for a 1 User sale.

How about licensing and sale price when I am selling to a client that intends to install my app on 5 or 10 or 500 PC's

What should those rates be adjusted too if my software is a $10,000 inital sale value and licensing for about $2,200/annually for 1 site

[szlamany]

We sell software to school districts, town halls and labor unions. Been doing this for 25 years...

It used to be that the customer expected no more than 15% of original sale price for annual maintenance/licence fees. We are starting to appreciate cash flow more and more and are thinking that lowering the initial cost and increasing the annual fees are a better business model.

We also used to offer a period of time after initial sale where there was no maintenance fees. We got rid of that several years ago.

We have also recently changed things so that "acceptance" is no longer "agreed upon" - but automatic upon the customer using the software - waiting for "acceptance" can become a huge hole.

We also a strictly separating DBA-support and enhancement charges from the annual maintenance fees. Phone calls are only covered when researching and correcting bugs in the software.

We have been burned by consortium types customers - we used to charge fees like they were a single customer, but they reap the fiscal rewards of supplying the software to many, many clients. All we can do at this point is increase the annual maintenance at a quicker pace for these customers - and never do it again...

If I had some idea what type of software/client you were talking about I might be able to give you more specifics.

[Avatarp]

I appreciate your imput

The clients I will be marketing to are large International companies with many sites and users.

Also I have another app I will be marketing to Clients in 1 site but may have many Users as well.