Tracy,
Until a week ago, I was never a beta tester for anyone else's s/w (now I am) or even thought about seeking beta testers for * our * software.
My first thought of free updates/upgrades seemed reasonable to me at the time.
Now that you have posted these insightful observations, I am leaning towards a better deal for the beta testers.
They are appreciated.

>I guess what I am saying is that it depends on the value of your product, the value of your customers, and the return to your customers for beta testing. What do your beta testers say? How many are you looking at? We typically have 2 but no more than 3 beta test sites. What they would they willing to beta-test for in return?
>
>>>SNIP
>>>>How about they pay full price for the license to use the software but the bug updates and upgrades are free? Or is that too little?
>>>>
>>>>TIA.
>>>
>>>I disagree with this. The purpose of a beta tester is to find bugs. They should automatically get all bug updates for free. They should also find enhancements that could be added that would streamline the product and make it more 'user-friendly.' In the longrun, the fewer bugs and the more your application is efficient and easy to move around, the happier your clients will be so you benefit, not the beta tester.
>>>
>>>When we are in beta testing we are communicating with the testers everyday-sometimes numerous times a day. They get immediate assistance and we determine if their 'issues' are truly bugs or just user preferences. Our beta testers get free use of our product during the beta test period and a discounted price for our product when the final version is released.
>>>
>>>Just my .02 cents...
>>>:o)
>>
>>Tracy,
>>
>>Points well made. Tks.
>>For example, let's say that when we licensed our s/w we did not require (or envision) beta testers. Everyone pays full price as well as a 15% annual service plan that includes bug updates and new features.
>>Next, we develop a new version of our s/w.
>>We are now looking for beta testers.
>>In your opinion, what is fair and reasonable (to both parties) under these circumstances?
>>TIA.