I am currently working on a program similar to IQ's iParent. I am aiming to sell it to he education system, but I am debating how to license it. My options are...


1. License the product to the state at a high price, and they would be free to distribute it to their schools of choice.

2. License it to individual schools at a lower cost.

Any advise?

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Hi Aaron,

Good question. My company ILance was faced with these questions but it's all about the future and how much or less you are willing to dig into.

If you charge one-time, that's it. One time. I'm sure you can work out some form of agreement where each time they distribute to schools of their choice, a small royalty fee would apply to the developer - you. You could also get involved in "Training" based on your software, which you can price accordingly.

On second hand, licensing it per school would be mainly my choice because you are able to structure your pricing model around various services offered. That would include annual fees (for software upgrades and updates), includes bug support all year around, you may include case-support on a per-client basis where you may or may want to charge through the roof (over the phone, on-site calls, etc).

The later option would be more work, but the payout would be much greater, and when you have one client buying your software, you can also reveal new products, new addons to the existing products and so forth.

It's all about their needs. Address that and you are set. By that, I mean price small but provide quality "service". This will cost, as it's your expertise. They won't go anywhere else unless you really piss them off!

Regards,
Peter

I did the math, and the profits would be the same. The issue at hand is which would sell. I can't sell at the state level, then turn around and sell to schools. Once the decision is made, I'll have to stick to it.

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Do keep us updated
Good luck!

Will do. What I might end up doing is selling it under contract to the state under the condition that they sell to the schools that want it while I get a percent of the profits from it. So if any new schools arise, I keep making money rather than keeping track of every school in America.

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Good Luck Boy.....I think Its Exactly the answer of your question...


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