How Do You Price "exclusive Rights" ?

[cүвεя_נυηкιε 68]

Hey there,

 

Ive been developing custom bots for clients for quite some time now and usually price each project individually ... as all developers do, 

however I have recently been asked if i would remove all branding and not to release the bot for sale, 

 

I dont really have a problem with either request but Im not really sure what sort of cost this should be for the client, .. 

so, as the title says how do you price "exclusive rights" ?

 

 

I understand that in most cases what the software does and how much work went into it would be the main factors, so pricing that is easy, 

but in this case what is "acceptable" ?

 

 

Im not bothered about asking for a large pricetag but at the same time I dont want to sell myself short lol, 

and I figured there are quite a lot of "Professional" developers here that might have been in the same situation or similar that could share some knowledge.

 

 

 

 

Thanks for reading

CJ

[davidford76 12]

I would not be enough authority to say much. But in my opinion since they are asking you to give them full rights and also to not sell it yourself then I would price it very high. Of course you should always be able to sell your bots on your own. So if they are asking you to not sell them and therefore not make money from them for many years to come then I would price it very high to make up for the years of missed sales. If they come back asking why I would tell them because if you expect me to miss out on sales for many years to come and not make anything from it then your totally wrong on your thought process. Plus like TJ said you can always lower it later on too if you have too. But if you go too low then you can never expect to raise the price later on because then people would expect it to stay low.

[cүвεя_נυηкιε 68]

I would not be enough authority to say much. But in my opinion since they are asking you to give them full rights and also to not sell it yourself then I would price it very high. Of course you should always be able to sell your bots on your own. So if they are asking you to not sell them and therefore not make money from them for many years to come then I would price it very high to make up for the years of missed sales. If they come back asking why I would tell them because if you expect me to miss out on sales for many years to come and not make anything from it then your totally wrong on your thought process. Plus like TJ said you can always lower it later on too if you have too. But if you go too low then you can never expect to raise the price later on because then people would expect it to stay low.

 

 

Thanks for the reply Davidford76, 

 

Your answer mimics my initial thoughts, which is relieving to know i wasnt over-thinking it, ... on this occasion,

and that the request "actually is" as odd as i thought lmao

 

 

 

 

Cheers

CJ

[mrwalt 34]

Like CJ said you do not want to miss future sales so you can give the customer a choice or several different options.

You also want to make the most of time that you invested in creating the bot worth the effort, so you want to be

fair but also smart.

 

Let's say that you would price this bot at $24.99 to sell retail to the public.  We are also assuming that this is

a highly quality bot as well(not something that you put together within 15 minutes).

 

Here are the different options I would give the customer and then let them choose.

 

Exclusive rights with bot and source code (which means that I never would sell it) - $2,497

Bot and source code (which means that I can sell it on my own as well) $1,247

Bot - no source code (which means that I can sell it on my own as well) $597.00

 

You can do so many scenarios, but this is just an example.

 

You can also have a option as an add-on that if they want updates that it is $97.00 per 6 month term

and can be renewed every 6 months thereafter.  You can be very creative.  However, with every custom job

I do I offer free updates for the first 30 days and then if they want additional support I charge at that point.

 

These are just some things that you can use to formulate some ideas.

[Ricx 3]

For me, I haven't sold any bots; It's not in my intention. However, if I am selling exclusive rights to a program, it suggests that user can become the sole distributor of it. 

 

For me, a few factors would have to be considered.

1) You may own exclusive rights, but that doesn't mean I give you my source code.

2) Will you need future updates? What if something were to change, if it's interacting with elements beyond your/his control it WILL eventually probably require updates.

3) Will my bot be commercialized? Or is it for you and your agency.

 

Based on those questions and depending on the type of software, the complexity and what it does I'll try to draft a price.

 

For pricing I'd just do my hourly rate * duration of the project - Base price.

Source code: X00 ~ 1000 depending on # of lines/complexity of code

For updates, there'd have to be some agreement.

[Brutal 164]

If you created the program for a fee and did so using the clients idea for the software, then shouldn't he own exclusive rights by default?

 

I know that for me personally I would come unhinged if I sought out a dev., gave him my software idea/instruction, paid the asking price, and then he sold my project to other people or hit me for more money to make it exclusive to me. (unless of course there was a pre-agreement with language to the contrary)

 

Aside from that and back to your original question - Take your best (realistic) guess at how much money you would make by promoting/selling it, then set your price near that same point.

[mrwalt 34]

Hi Brutal,

 

I agree with you on the source code that it should belong to the buyer if they came to me with the idea.

 

Now if they want exclusive rights to it where I cannot sell it I just charge more to compensate for my time

and the fact that I will not be able to make any future sales from it.  Just think of the ThemeForest (Envato)

marketplace.

 

However, these are all just ideas and that is the beauty of being a product creator as you have so much

flexibility in how you run your business.

 

It beats being just an affiliate where you have to compete with hundreds to thousands of others promoting

the same products competing for the same market share.

[cүвεя_נυηкιε 68]

Apologies for the delay in reply chaps, had no power for 2 days, 

im not entirely sure how we all survived without the internet, I was twitching after 6 hours 

 

 

Like CJ said you do not want to miss future sales so you can give the customer a choice or several different options.

You also want to make the most of time that you invested in creating the bot worth the effort, so you want to be

fair but also smart.

 

Let's say that you would price this bot at $24.99 to sell retail to the public.  We are also assuming that this is

a highly quality bot as well(not something that you put together within 15 minutes).

 

Here are the different options I would give the customer and then let them choose.

 

Exclusive rights with bot and source code (which means that I never would sell it) - $2,497

Bot and source code (which means that I can sell it on my own as well) $1,247

Bot - no source code (which means that I can sell it on my own as well) $597.00

 

You can do so many scenarios, but this is just an example.

 

You can also have a option as an add-on that if they want updates that it is $97.00 per 6 month term

and can be renewed every 6 months thereafter.  You can be very creative.  However, with every custom job

I do I offer free updates for the first 30 days and then if they want additional support I charge at that point.

 

These are just some things that you can use to formulate some ideas.

 

Thanks mrwat, this again also tallies with some of my initial thoughts, 

great info, appreciate the effort

 

 

 

 

For me, I haven't sold any bots; It's not in my intention. However, if I am selling exclusive rights to a program, it suggests that user can become the sole distributor of it. 

 

For me, a few factors would have to be considered.

1) You may own exclusive rights, but that doesn't mean I give you my source code.

2) Will you need future updates? What if something were to change, if it's interacting with elements beyond your/his control it WILL eventually probably require updates.

3) Will my bot be commercialized? Or is it for you and your agency.

 

Based on those questions and depending on the type of software, the complexity and what it does I'll try to draft a price.

 

For pricing I'd just do my hourly rate * duration of the project - Base price.

Source code: X00 ~ 1000 depending on # of lines/complexity of code

For updates, there'd have to be some agreement.

 

Thanks Ricx,

its always good to see others views on pricing structure, something ive never been too great on 

 

 

If you created the program for a fee and did so using the clients idea for the software, then shouldn't he own exclusive rights by default?

 

I know that for me personally I would come unhinged if I sought out a dev., gave him my software idea/instruction, paid the asking price, and then he sold my project to other people or hit me for more money to make it exclusive to me. (unless of course there was a pre-agreement with language to the contrary)

 

Aside from that and back to your original question - Take your best (realistic) guess at how much money you would make by promoting/selling it, then set your price near that same point.

 

Hey Brutal, 

This is EXACTLY where my head was when i open this thread, 

 

also to be fair i could have provided a couple of other details that would clear this one up a bit, 

the impression i got from this client was along the lines of if i was going to release another or any bot that did the same or similar process at a specific shopping website, 

 

 

so you are absolutely right regarding using a clients "idea" and that is something i would never do .. ever, .. i reckon "unhinged" would probably be an understatement,

but i will be releasing a similar bot for the same site that was already in my project list that was thought out and planned long before i knew this chap existed, 

so it just seemed a bit of an odd request to not develop another bot of the same nature, 

 

 

 

 

Hi Brutal,

 

I agree with you on the source code that it should belong to the buyer if they came to me with the idea.

 

Now if they want exclusive rights to it where I cannot sell it I just charge more to compensate for my time

and the fact that I will not be able to make any future sales from it.  Just think of the ThemeForest (Envato)

marketplace.

 

However, these are all just ideas and that is the beauty of being a product creator as you have so much

flexibility in how you run your business.

 

It beats being just an affiliate where you have to compete with hundreds to thousands of others promoting

the same products competing for the same market share.

 

 

 

Thats a good point with Envato, it was on a list of sites i made to submit some software, 

on one hand the thought of not being able to submit "Anywhere" else is a bit odd, 

but then on the other they have one hell of a customer base which is epic for exposure, .. one thing is for certain, they have there heads on strait lmao

 

 

"It beats being just an affiliate where you have to compete with hundreds to thousands of others promoting

the same products competing for the same market share."

 

ahh that takes me back a few years

 

 

 

 

 

 

Thanks for the comments and opinions, greatly appreciated 

its always good to hear views from others and get some alternative points of view

 

 

 

 

Cheers

CJ

[Brutal 164]

CJ I don't envy you.... You are firmly wedged between a rock and a hard place on this one.

 

For me personally, if I build something for someone else, I never ever give them source code on it... They would pay through the nose for that before I would even consider it.

 

Additionally, if I already have a similar project in the works, I tell them that right up front (for obvious reasons)

 

Now, as for your buyer specifically - You could of course give him exclusive rights to his product, just make sure to give your previous project a look/feel/flow that is separated enough that you CYA on the deal. No matter what, the guy isnt likely to be happy, but then again no one gets full copyright privileges on your work in general and it is unreasonable to assume that you would never build another product that wouldn't contain at least some of the same elements as his.

[kev123 132]

typically for custom work i'll price the following:

 

just software- quote based on hourly rate/time to complete

+rights to source - depending on complexity usually +50%, sometimes I can't go through with these jobs as providing the source and rights to the source isn't viable.

 

Note Developer to Developer I don't include any additional for source as generally these jobs are for specific functions and not a full piece of software. I guess my criteria for additional cost of source is a commercially saleable product. 

 

excusive rights only rarely comes up and generally means a non-compete clause including any other custom work. Typically i'll push for rev share or monthly dev support for this type of work. If the person/company is unable to enter a contract for specifically what the terms and conditions are. I wont entertain as such a grey area that could destroy your business when doing corporate work.

 

thanks

kev

[cүвεя_נυηкιε 68]

CJ I don't envy you.... You are firmly wedged between a rock and a hard place on this one.

 

For me personally, if I build something for someone else, I never ever give them source code on it... They would pay through the nose for that before I would even consider it.

 

Additionally, if I already have a similar project in the works, I tell them that right up front (for obvious reasons)

 

Now, as for your buyer specifically - You could of course give him exclusive rights to his product, just make sure to give your previous project a look/feel/flow that is separated enough that you CYA on the deal. No matter what, the guy isnt likely to be happy, but then again no one gets full copyright privileges on your work in general and it is unreasonable to assume that you would never build another product that wouldn't contain at least some of the same elements as his.

 

 

"CJ I don't envy you.... You are firmly wedged between a rock and a hard place on this one." 

Thanks for that hahaha

 

 

Yes I agree on that Im never keen on even the thought of selling a source code, 

although im not going to lie, I do believe everything has a price (material object wise obviously, i wouldnt sell my wife an dogs lmao) 

but in honesty I dont think ive ever been asked before, 

 

Regarding mentioning the original project upfront, yep .. nail on the head right there mate , 

i guess ill have to peg this one down to inexperience, .. I genuinely didnt really even give it a second thought, 

one thing i can say however is that its not a mistake ill be making again this side of the apocalypse,

 

also, regarding my original project the features list is pretty much completely different, it does 3 of the same things (in total) 

but does a ton of other tasks and looks completely different, the only thing connecting them is the site being automated (and the 3 things mentioned)

 

 

 

"but then again no one gets full copyright privileges on your work in general and it is unreasonable to assume that you would never build another product that wouldn't contain at least some of the same elements as his."

This is where the stubborn side of my head creeps in during thought process, .. 

before i read all the comments I coudnt get out of thinking "how is it any of my clients business what my future projects contain"

Yes, to sell the same bot would be a kick in the face, 

but a bot that does something at the same site, .. bit bold,

 

 

 ​Ahh its a funny old life, ... those curve-balls are an SOB  

 

 

 

 

Cheer Brutal, 

I am normally the person to point out situations from "both" points of view, but for some reason on this occasion my head was stuck in Dev mode,

There are always two sides to consider. 

 

 

 

CJ

[cүвεя_נυηкιε 68]

typically for custom work i'll price the following:

 

just software- quote based on hourly rate/time to complete

+rights to source - depending on complexity usually +50%, sometimes I can't go through with these jobs as providing the source and rights to the source isn't viable.

 

Note Developer to Developer I don't include any additional for source as generally these jobs are for specific functions and not a full piece of software. I guess my criteria for additional cost of source is a commercially saleable product. 

 

excusive rights only rarely comes up and generally means a non-compete clause including any other custom work. Typically i'll push for rev share or monthly dev support for this type of work. If the person/company is unable to enter a contract for specifically what the terms and conditions are. I wont entertain as such a grey area that could destroy your business when doing corporate work.

 

thanks

9to5

 

Thanks kev123

 

Fortunately there has been no "agreed" anything as of yet (other than original custom project cost) 

as mentioned Exclusive rights is far too "grey" and if I am to agree to anything at all it will need to be well thought out and discussed "in detail" beforehand, 

 

I am currently in contact with the chap and will be "chatting" about this in the next day or so, 

so I will know what his "actual" intentions are, 

 

 

Its funny, .. it is one of those situations that I wasnt expecting to arise, or more to the point hadnt even conceived the thought of it, 

Ive been asked to sell my source codes a million an 1 times but the exclusive is a new one, 

 

 

 

 

Cheers

CJ