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Ask: I've been approached by a fortune 500 company. How much should I charge?

12 点作者 DrorY超过 12 年前
Quick consultation here, I need your help guys. I've developed a Facebook application for pages. It's been seeing some success. I've got a white label version that charges 19.99 yearly.<p>I've been approached by a big company (fortune 500 ) and am now setting a skype call with their social media department.<p>I am not sure what I should offer them, and what budget I should be aiming for. Should I offer them a white \ gray label solution? How much should I be charging.<p>Thanks!

5 条评论

dirtyaura超过 12 年前
First, I don't know what your application does, but based on the small yearly price, I assume it isn't super-complicated. BUT regardless of how simple your application is, you should negotiate a deal that will bring you thousands or tens of thousands over a period of time. They have likely spend some time finding out about possible solution. Thus, they can easily pay a few thousand dollars immediately if it solves their need and more over a period of time.<p>However, don't just negotiate on a single price, but strike a deal where support work will bring you recurring revenue on monthly basis.<p>Try to have several dimensions on which you negotiate, not just the price. You already had a great idea for a negotiation dimension: do you offer it as a white or gray label solution. If they are willing to pay too little, require that your product brand is clearly visible for end users, thus bringing more customers for you in the future. You can negotiate on many things besides the price: the scope of your support, your availability, the response time to support queries, your scalability promise to them, future improvements to product, etc.<p>Good luck!
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porlw超过 12 年前
Your white label product is a mass market thing. F500 companies expect a more hands service.<p>Here's what I would do: Offer an initial consultation period (say 2-4 weeks), at a suitable rate ($100 - $200 per hour)<p>Spend the time meeting with all people involved. The consultation period will probably be extended, because everyone will have different opinions and more folks will get dragged in and it will be hard to schedule time with the important decision makers.<p>During this time you need to establish what value the client attaches to the project (how much money will it make or save them?) This is the infamous "value proposition".<p>You need to capture as much of this as possible - this is the budget you should be aiming for. How much of this you can capture will depend on how much any alternatives you identify would cost (competitors and/or internal development).<p>An important part of your final offering will be support. It's probably best to price the final deliverable lower and charge more for support, since that will be a recurring income.
kayhi超过 12 年前
Try very hard to have them put out a range of what they are expecting to pay. If they approached you then you should have some leverage in the situation.
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Travis超过 12 年前
I can't offer any absolutes, but I would recommend that you continue a conversation with them before quoting a price.<p>Try to determine (estimate) their budget. You'd be surprised at how easily corporate employees will reveal budget.<p>Then charge a percentage of that budget.<p>Alternatively, try to figure out their internal cost estimates/budget for your component. Then double that.<p>You have a ton of negotiating room, but always do it as a percentage of what they were expecting to spend on the project/your component.<p>In my (light) experience, I've always at least doubled the amount of money coming in. Working with a corporation is a different beast than directly estimating value delivered / standard consumer stuff.
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nhangen超过 12 年前
Keep in mind that even at Fortune 500 companies, budgets are limited to the department, and within that department, the presumed impact of said project.<p>Every time I have negotiated with a company of this type, I have come away thinking that they had unrealistic pricing expectations. That said, you must price higher because of the bureaucracy you will be dealing with.