Member Avatar for Router_X

Hi,

I recently created a theological program by combining new technology (flash, forums, video, audio) to make old information engaging (theological information) to the viewer of the flash program.

I posted it online for free for about 24 hours. A company contacted me right away saying they wanted me to make this product for them (same text, same template, etc..) for them in-house so they could sell it on CD. They asked that I pull my website and work for them, thinking we could sell the CD for about $15.00 per CD.

Question: I know it will take about another 100 hours to customize what I did according to their needs, how do I negotiate?

1) Pay me smaller flat fee for the 100 hours of work with the agreement that I get a percentage of every CD sale

2) Pay me a larger flat fee for the 100 hours of work with no percentage of CD sales

Has anyone been in this position before? Did you negotiate per sale of each CD? I don't want to be unrealistic. If just one flat fee is what I should expect, that's fine, but I don't want to pass up a percentage of sales if that is what is common for this type of negotiation.

Thanks in advance.

  • 3 Contributors
  • 5 Replies
  • 88 Views
  • 2 Days Discussion Span
  • Latest Post Latest Post by Ancient Dragon

Dani AI

Generated

A pragmatic path that builds on 's volume point and 's IP caution is to aim for a hybrid deal that secures immediate pay, preserves the core asset, and shares upside if sales occur. For a project that needs roughly 100 more hours of customization, the most useful bargaining chips are (a) a paid advance or milestone payments that cover development time and (b) a narrow, well‑defined license for distribution (CD only, stated territory and term) rather than an unconstrained transfer of ownership.

This agreement should explicitly cover the following items:

  • Scope and exclusivity: format, territory, duration, and whether the buyer gets sole rights for CD distribution.
  • Ownership and source control: license vs work‑for‑hire, source escrow, and rights to reuse core code.
  • Money terms: advance/guarantee (recoupable), royalty basis (per unit or percent of net), reporting cadence, reserve for returns, and audit rights.
  • Deliverables and change‑orders: agreed scope for the additional 100 hours and rates for extra work.
  • Support, updates, termination triggers, reversion of rights, and limits on warranties and liability.

Present a short LOI or two-option pricing sheet (buyout vs licensed deal with minimum guarantee) so the buyer can choose a path. A signed written contract should be in place before removing content from public view. For legal framing on work‑for‑hire versus licensing see Cornell Law School Work for hire and for registering software copyrights see the U.S. Copyright Office Circular 61. Professional contract review is strongly recommended.

Recommended Answers

All 5 Replies

Member Avatar for Ancient Dragon

Depends on how many copies of the cd you think they can sell. Just a dozen or so, hundreds, thousands, or millions? The subject you described is something that will appeal only to a rather small segment of society. At $15.00/CD you won't get much of a royalty so I would probably opt for option 2 and they, not you, will own all rights to the program.

Member Avatar for jbennet

say a small flat fee BUT that the code remains your property. That way if they want to modify it or make a new version, they have to pay you to do it.

Member Avatar for Router_X

say a small flat fee BUT that the code remains your property. That way if they want to modify it or make a new version, they have to pay you to do it.

This is a great idea. I really like this one. Thank you.

Member Avatar for Router_X

Depends on how many copies of the cd you think they can sell. Just a dozen or so, hundreds, thousands, or millions? The subject you described is something that will appeal only to a rather small segment of society. At $15.00/CD you won't get much of a royalty so I would probably opt for option 2 and they, not you, will own all rights to the program.

I'm going to estimate that over the next two years it will sell 10,000 copies. The theological theme is something pastors really use, alot (without getting too specific). I think 10,000 is a fair number, it could be a lot more.

Member Avatar for Ancient Dragon

I'm going to estimate that over the next two years it will sell 10,000 copies. The theological theme is something pastors really use, alot (without getting too specific). I think 10,000 is a fair number, it could be a lot more.

That's quite a few copies so maybe getting a royalty would be the best way if you get at least 50 cents/CD.

Be a part of the DaniWeb community

We're a friendly, industry-focused community of developers, IT pros, digital marketers, and technology enthusiasts meeting, networking, learning, and sharing knowledge.