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Thread: Questions about licensing my Web Application

  1. #1
    Join Date
    Jun 2004

    Question Questions about licensing my Web Application

    Hi all,

    I have developed a web application and have found a company that is wanting an exclusive license to manage, market, and sell subscriptions to my web application for me. I'm comfortable with the arrangement, but I'm unsure as to what to charge as a license fee.

    I have gotten them to agree to allow me to earn a royalty based on a percentage of the revenue they charge for each subscription. The number that has been thrown out is 30%. So for example, if they sell a subscription for $10 per month, I get $3 per month and they get the rest.

    I do not have to put up any money. I will be continuing to develop and enhance the application as well as supporting it technically. However, I will not be providing END USER support. I will provide support to the company that is marketing it. They will deal with the end users.

    I will also make myself available to customize the application for any of their customers, however, I'm sure they will charge extra for this, so in essence, I will get extra since I would get 30% of the revenue.

    My questions are as follows:

    1. Is 30% a fair amount? What's the standard?

    2. Does it sound like a good deal to you? Is there anything I should be asking for that I haven't mentioned?

    3. Any other comments/suggestions?

    Thanks for your input. I welcome it. This is the first time I've had the privelege to do this, so I'm very excited, but want to be sure I do it the right way.


    Dave Phillips

  2. #2
    Join Date
    Dec 2003
    Please dont create a thread twice on the same subject as you have the same thread in the general section

  3. #3
    Join Date
    Jun 2004
    Sorry, just wanted to make sure it got seen by the largest audience possible and I figured some people qualified to help me might look in one but not the other, so I thought it was a valid double post. I'm not a newbie to forums.

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