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AM: Pricing suggestions

To:     "'ad-market@netpreneur.org'" <ad-market@netpreneur.org>
Subject:     AM: Pricing suggestions
From:     Ann Shack <0007322532@mcimail.com>
Date:     Mon, 09 Jun 1997 15:23:38 -0500 (EST)

-- [ From: Ann Shack * EMC.Ver #2.3 ] --

We have a negotiation coming up soon, and would appreciate any and
all perspectives about how to handle it. Here is a sketch...please feel
free to ask any question or make any comments (no flaming!)

The situation:  our company develops surface transportation software. We
have a site on the web---www.freetrip.com/ which draws a lot of usage.

A prospective client wishes to have us customize a version of our software
and make it available for their members. Revenue will be generated in two
ways: (1) through adds on the site; and (2) by sharing revenue with a third
party
who develops destination database information.

Problem:  our advertising model is a fixed cost per property per year. Initial
costs
are high, so we would like to get as much cash up front as possible.

How would you:
- learn how much cash they can advance, both to cover expenses and to advance
royalties
- decide the revenue splits
-determine the length of the contract
-other??

Thanks for your help.
Ann Shack
ashack@mcimail.com

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