Shafid

To me it would depend on the annual stream of revenue(income) one could collect from selling the $1,000 applications. Calculate what they could earn annually and then apply a multiple to that. The multiple would be based on whether they could increase that annual stream of revenue(income) or not.

For example a lot of small businesses are sold at 5-10 time earning and if it is a growing business they would increase the multiple to say 15 - 20. In valuing stocks in the stock market this is called a Price Earning multiple and is used to value stocks. The higher the earnings potentional the greater the price of the stock.

I have the same problem as I own the source code for a fairly large insurance application I wrote, liscensed at about $400,000 per application, however I am in a nich market and the changes to resell the application is fairly limited. Based on how many liscenses the buyer thinks he can sell will determine how much I will be able sell my source code for and whether it becomes a golden parachute for me or I have a fire sale.


Gaylen







>What would I charge for a source code of a program which I retail at $1000.
>Any ideas will be appreciated. Thanks.