You need to base the buyout on the revenue over a period of time, say two to three years. I've seen the price be as much as 40-50% of that. However, you also need to base it on the percentage you were getting in the first place. Also, make sure your contract clearly defines who owns the copyright.


>Hi All
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>My partner and I are prepairing a contract for one of our clients. We're kinda of new to this and were hoping for some pointers.
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>The issue, our client is just getting started and has limited funds. The product being created will before resale and our client has offered percetage of each copy copy sold. Our current contract is kinda of open ended because of this. Now our client has now asked for a clause to terminate the contract before he signs, along with other little modifcations of course. We are trying to come up with a fair buy out price for the software so we are not anything as well.
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>Initial specs, looking my specs over i figure 6 data forms and another 7 for utilities, report, etc. and then problably 6 or so reports. I know I not being exact, but I'm only looking for an estimate. The client will obviousily want ownership of the source.
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>Any help or input would be appriciated thanks
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>Mike