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How To Sell an Alpha5 Database Application

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    #1

    How To Sell an Alpha5 Database Application

    I've designed several database applications for my employer. One of our employees left the company recently, and wants to purchase one of my applications. I've never sold a database before. Can anyone give me some guidance/suggestions on how to price an application? On other points to consider? [I'll get my employers permission to sell the app.]
    Carl C. Smith, Jr.
    Tags: None
    #2
    Re: How To Sell an Alpha5 Database Application

    Hi Carl,

    As you built the application for your employer, I don't think you will have any rights to sell the app, unless you get it in writing.

    If you were to build another copy on your own machine in your own time, then you could sell that as many times as you wanted. The price, well that depends how long it takes you to build it. I would suggest from $25 an hour to make it worth while. More if you already earn that. Dont forget, you will also need a copy of runtime which will have to be factored in.
    Regards
    Keith Hubert
    Alpha Guild Member
    London.
    KHDB Management Systems
    Skype = keith.hubert


    For your day-to-day Needs, you Need an Alpha Database!

    Comment

      #3
      Re: How To Sell an Alpha5 Database Application

      Whatever price you determine, be absolutely sure you agree on post-sale support issues. Support can eat away any revenue you might earn from the sale. On the sale, I remember this from some book on negotiation -- ask these questions of at least three individuals:

      1. what is the highest price that if it were any lower you would think maybe it is a "cheap" product not worth buying?
      2. what is the highest price that if it were any higher it would not be worth the cost?
      3. what is the highest price where you would not feel any hesitation to purchase?

      Sell it at a price between price 1 and 3.
      Steve Wood
      See my profile on IADN

      Comment

        #4
        Re: How To Sell an Alpha5 Database Application

        Both Keith and Steve bring good points.

        If you built your app at home on your own time with your own software with your own hardware, it is clearly yours. If not, it could be VERY questionable. You may need to share that profit with your employer?? Hope not.

        For pricing: Suppose you were the other company, what would it be worth to you as that company for the benefits it could/would generate. I suggest selling the price based on the benefits rather than the cost to you.
        Examples: a car is worth as much or as little as you can get for it, no matter how much you invested in it. It could profit or loss when related to cost.
        If the company you sell the rights of use to is going to benefit by not hiring another person, It should be worth 1/2 the cost of that employee for one year. Make sense?

        As Steve aluded to: be sure to spell out and charge for any post sale changes and issues that may arise. Do NOT leave the details un- detailed. It will bite you.
        Dave Mason
        [email protected]
        Skype is dave.mason46

        Comment

          #5
          Re: How To Sell an Alpha5 Database Application

          You absolutely have to consider ownership of the application. Not only do you own it, but what rights does the person you sell it to have to resell? Usually there are very elaborate "license agreements" that allow the purchaser to use the application, but not to resell it to others.
          Pat Bremkamp
          MindKicks Consulting

          Comment

            #6
            Re: How To Sell an Alpha5 Database Application

            FWIW.
            As has been pointed out, you will need a End User License Agreement (EULA) and these can be downloaded from a number of sites and tailored.
            The support issue is a difficult one. If the person you are selling the app to is competent, you could sell the app "as-is" for a one off fee.
            If the app is worth say, $1000, then a 20% annual support fee is an option.
            Suggestion.
            Let the prospect test drive the app and if they purchase it, agree an hourly rate for support calls. Your employer might not want you to run a support session in his/her work time though.

            See here for ideas
            http://www.developer-resource.com/rs...s-template.htm
            See our Hybrid Option here;
            https://hybridapps.example-software.com/

            Apologies to anyone I haven't managed to upset yet.
            You are held in a queue and I will get to you soon.

            Comment

              #7
              Re: How To Sell an Alpha5 Database Application

              This seems like a good place to remind that there are many Alpha-related items at IADN's Store (www.alphadevnet.com). Also, if YOU want to sell something Alpha-related on our Store (utility, application, etc.) please give me a call.
              Steve Wood
              See my profile on IADN

              Comment

                #8
                Re: How To Sell an Alpha5 Database Application

                Thanks to everyone for the great suggestions and comments. Especially the EULA and support considerations. It's clearly not just a question of money. Thanks again.
                Carl C. Smith, Jr.

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