Gregg
greggs at msn.com
Sat Apr 23 11:31:37 CDT 2005
It's a very good idea. Removes most of the sales objections. Allows the customer to kind of try before they spend a lot. Makes the purchasing decision nearly a no-brainer. The only downside I can see is if their expectations are far different that what your software delivers, you will either have to make modifications quickly and essentially for free or they will be tempted to shop around for another solution. I have done something similar. Our software is totally custom for each customer so our end product is almost all programming by the hour. This year I was able to convert 4 long-term customers to a regular monthly billing. We still track hours and make adjustments when necessary but now I can count on a regular monthly check. It's been good. Also, I have noticed a change in their mindset about asking for additions and enhancements. In the past there were mini approval processes where they would get an estimate of our labor before proceeding. Now, I guess because of the monthly payments, they tend to think of it as a maintenance contract (where requests are seemingly free) even though I have been very clear that it is not. Now, from their perspective its a budgeted, yearly commitment (once-a-year decision) even though they are free to get out at any time. ----- Original Message ----- From: Dan Waters<mailto:dwaters at usinternet.com> To: Database Advisors<mailto:accessd at databaseadvisors.com> Sent: Saturday, April 23, 2005 10:18 AM Subject: [AccessD] Client Payment Methods To All, Yesterday I had a business planning meeting with an advisor. He brought up the idea of asking my clients to pay me on a monthly basis - the concept is that they would pay me a portion of the ongoing value they get from my services. (By the way, this is not a maintenance fee.) This sounds quite attractive. My customers might skip a major budget discussion (often lasting several months) and quickly get started. They have a low risk because they could discontinue whenever they want, which is actually a good business position. On my side I would be a little shocked if they did discontinue because no one would really want to go back to the old way of doing business. I'm thinking that I would ask for a monthly amount of 1/36 of what I would have asked for to 'sell' a module. The monthly payment would of course continue after the 3-year period. This gives me a long-term regular income stream, and allows my customer to make small monthly payments which might be easier to get into. Does anyone provide software under similar terms? Or, does anyone use software under similar terms? What are your thoughts on this payment method? Dan Waters -- AccessD mailing list AccessD at databaseadvisors.com<mailto:AccessD at databaseadvisors.com> http://databaseadvisors.com/mailman/listinfo/accessd<http://databaseadvisors.com/mailman/listinfo/accessd> Website: http://www.databaseadvisors.com<http://www.databaseadvisors.com/>