Results 1 to 4 of 4
  1. #1
    Join Date
    Sep 2004
    Location
    Poland
    Posts
    2

    Share negotiation

    Hey guys !

    Im asking You for an opinion.

    I've got an offer. I've developed a system for a company X.
    It works well. I sold the rights of the system to the company.
    Now, they want to sell it, but the system requires constant updates
    and administration. They offer me share from the profit of selling.
    I will be supposed to update soft, install servers if required,
    also there are plans to make new soft.

    I have to give them my proposition about my share, but I dont know the
    share which I should start negotiation from. Could You give some advises ?
    I thought about 20%, is it too much ? too low ? or maybe its ok ?

    For the company, it is me or nobody, couz the cost of initiating somebody
    else would be rather too big

    thx in advance
    greatz

  2. #2
    Join Date
    Jul 2003
    Posts
    1

    start high

    The higher you start the better. 40%?? and then negotiate yourself down based on any and all time commitments you may find yourself agreeing too. They certainly won't work their way up. Good luck.

  3. #3
    Join Date
    Jul 2004
    Location
    Inverurie
    Posts
    628
    I would say start at 40% for the sales alone, and then they pay you X-amount for any updates you create for it. I would then ask them to generate a plan to see how much of my time would be taken up by supporting the software. You could probably charge a set fee per hour, or a fixed fee per day (including part days at the full day rate, i.e. 2.5 days = 3 full days rate.).

    Before telling them what share you want, get a plan from them first. That way you'll know how involved you'll be in this. Then you can make a decision based on that.

  4. #4
    Join Date
    Jul 2004
    Location
    Inverurie
    Posts
    628
    I would say start at 40% for the sales alone, and then they pay you X-amount for any updates you create for it. I would then ask them to generate a plan to see how much of my time would be taken up by supporting the software. You could probably charge a set fee per hour, or a fixed fee per day (including part days at the full day rate, i.e. 2.5 days = 3 full days rate.).

    Before telling them what share you want, get a plan from them first. That way you'll know how involved you'll be in this. Then you can make a decision based on that.

    Just remeber that you're in a unique position with the company, so you can charge higher than normal (because there's no-one else).

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •