Best pricing model to sell a web application?

MisterBigglesworth

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Aug 15, 2006
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Hiya

I developed and online web application for someone, and wrote it in such a way that hopefully one day others would buy it to. So they paid for the web app, and I set it up on their domain, all good. Essentially I have been paid for the time I took to develop the app.

Someone else is interested in it, but they want some changes which is fine. Now I have already made back my time in selling the app initially, so I dont feel its right to charge client 2 for the app (as its done), but rather only for the changes they would like. It will be hosted on my own domain, and they would then be given access to it with usernames and passwords. This is the preferred solution as most don't have domains to install it on.

So here's where I am a bit stuck. Do I charge them X% of the initial cost it took me to develop the app, and then the changes the want as extra? I will also be doing a retainer for them, as I would need to add users for them, training, queries and help etc, as they are not tech savvy.

An example of the breakdown I was thinking of using, how do you guys do it? First time with this sort of thing...so am clueless...

Example, if the initial cost of the system was R10 000 to develop it. So then for any new client's fee structure from here on out:
  • Once off fee of R2500 (25% of the initial cost to develop it, is this too little or too much or should it be left off completely??)
  • Extra changes/updates/additions to the system at my hourly rate
  • Monthly retainer of R2500 (25% of the initial cost to develop it, this will help towards my monthly cost like hosting the system, training users if needed, queries etc - so general admin type stuff). I would use a sliding scale here, so it starts at R2500 for 10 users and then increases by 5% for every set of 10 users added, eg:
    • 1-10 users, R2500 monthly retainer
    • 11-20 users, R3000 monthly retainer
    • 21-30 users, R3500 monthly retainer etc...
Does this seem fair? Am I on the right track? How do you guys do your pricing models for the web apps you deliver?
 

_kabal_

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Oct 24, 2005
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What does the initial contract say?

If you develop an application for a client that does not necessarily mean that you own the IP.

100% of the applications we develop are owned by the client after final payment and delivery.
we obviously might use our own internal libraries that are explicitly mentioned in the contract

but hypothetically. If I charged client A R10,000, and i kept the IP, I would charge client B whatever I thought they would pay.

if client A had revenue of R1,000,000 and client B had revenue of R10,000,000 I would have no issue charging client B R100,000
 
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MisterBigglesworth

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Aug 15, 2006
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I didnt sign a contract with them in terms of IP, it was for the system as is and for the new client, they want the system changed to accommodate their data capture needs. So basically I built a frame work with a custom capture form for my first client, the second one like what it does...but they need their data capture form done specifically for them...so essentially it wouldnt be a conflict in any way, even IP related.

Granted, many other people do what my first client does, so I wouldnt sell the system to another client in the same boat, just not cool. But ja...my new client, its a different line of work.
 
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