[AccessD] Client Payment Methods

Dan Waters dwaters at usinternet.com
Mon Apr 25 20:48:20 CDT 2005


On Ownership:

If you wrote it for them without a contract then they own that one copy but
not the copyright.  Even if you don't talk about it or put copyright into
your database or literature.  They can sell the copy they have to someone
else, but they can't keep a copy for themselves.

Without a contract you own the copyright.  You can copy what you made for
them as many times as you like and sell it for whatever you can get to
whomever you like.

Only a contract between you and them can change any of the above.

All the best!
Dan Waters


-----Original Message-----
From: accessd-bounces at databaseadvisors.com
[mailto:accessd-bounces at databaseadvisors.com] On Behalf Of Kath Pelletti
Sent: Monday, April 25, 2005 6:38 PM
To: Access Developers discussion and problem solving
Subject: Re: [AccessD] Client Payment Methods

Thanks Dan - I don't contract to them - I just write each system for a fee -
I always work on the basis that I own them and so far no client has wanted
to challenge that stance. (I know from previous discussions on the list that
ownership is no simple matter..)

Thanks for the details - 
Kath


  ----- Original Message ----- 
  From: Dan Waters 
  To: 'Access Developers discussion and problem solving' 
  Sent: Tuesday, April 26, 2005 12:48 AM
  Subject: RE: [AccessD] Client Payment Methods


  Hi Kath,

  I talked with an accountant this morning.  He said that a capitalized
  software purchase is depreciated over 3 years (straight-line).  This
'seems'
  to indicate that asking them to pay 1/36th of the 'purchase' amount every
  month from now on would be OK.  A $10,000 purchase would equate to a $278
  monthly payment.  The $278 is regular income to you, and does not end.  

  Instead of some fraction of the purchase price, you could try to calculate
  the monthly value they get, and then charge a portion of that.  This is a
  pretty reasonable approach - the customer pays for less than the value
they
  get for as long as they are getting it.

  They could drop out at any time after 6 (or 12?) months - so the risk is
on
  you to provide something that is worth more to them each month than they
pay
  each month.  There will need to be a mechanism (or good contract) to turn
  off the software if they decide to discontinue.  

  What I think I'll do is offer continuing Tech Support and Warranty for as
  long as they use the software.  So I'll offer a Purchase License and a TSW
  License - customer's choice.  And, they can convert a TSW License to a
  Purchase License whenever they like.

  However - do you license your software or are you contracting with them to
  provide software that they will own?  If they will own it, then you'll
have
  to come up with some additional service to make it worth their money. 

  ** On my website there is a spreadsheet intended for prospective customers
  to enable them to calculate for themselves the productivity increase they
  will experience by using my software to automate a business process.  Go
to
  www.promationsystems.com/download.htm.  Download the compressed file that
  has an instruction document, an instructional video, and the spreadsheet.
  If you are a member of the AccessD list you have my permission to modify
the
  spreadsheet for your business.  (I used Windows Media Encoder 9.0 to
create
  the screen capture video.)


  Dan Waters




  -----Original Message-----
  From: accessd-bounces at databaseadvisors.com
  [mailto:accessd-bounces at databaseadvisors.com] On Behalf Of Kath Pelletti
  Sent: Sunday, April 24, 2005 8:14 PM
  To: Access Developers discussion and problem solving
  Subject: Re: [AccessD] Client Payment Methods

  Gregg / Dan - Can you tell me how this works? I also only do fully
  customised systems - my normal process is to provide a written quote on a
  job and ask for  half as deposit and the other half on completion.
  Additional work quoted separately.

  So if I was to quote a job which worked out to $10,000 - how would I
convert
  that to an ongoing monthly payment? My accountant has also suggested that
I
  get some monthly payments happening - but I have no idea really how to do
  that....How much should they pay? What do I promise in return? How long
does
  the arrangement run for??? 

  Kath
    ----- Original Message ----- 
    From: Gregg 
    To: Access Developers discussion and problem solving 
    Sent: Sunday, April 24, 2005 2:31 AM
    Subject: Re: [AccessD] Client Payment Methods


    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

       

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