-- [ 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
who develops destination database information.
Problem: our advertising model is a fixed cost per property per year. Initial
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
- decide the revenue splits
-determine the length of the contract
Thanks for your help.