IMO, that's not a site license. They should pay you a fee for each customer they want to 'give' it to.
Also, like Gerald said, if you have to support it, you need a fee for that - I would calculate an average number of hours of support you provide for customers (each) per year, and offer a year of support, etc.
If they want to buy just n000 copies, make a price based on what you would sell it for, and include money for support, upgrades, etc.
I would be very careful with this - and also remember that they want your software - it's not you going after them.
>Good morning UTarians,
>
>Let's say you have a small vertical market app that a bunch of customers have bought (more names than you can remember, but you're not rich yet ;-).
>
>Now someone comes along and says "I'd like to buy a site license for x000 users." Essentially they propose to give the software to all their customers as a "value-added feature" of their service.
>
>How do you determine the price?
>
>Tnx,
Wayne Myers, MCSD
Senior Consultant
Forte' Incorporated
"The only things you can take to heaven are those which you give away" Author Unknown