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How % of their volume$, should a small cie spend on IT?
Message
From
19/06/2004 19:00:22
 
General information
Forum:
Visual FoxPro
Category:
Contracts, agreements and general business
Miscellaneous
Thread ID:
00914409
Message ID:
00915416
Views:
14
Eric -
there are 'hard' dollars, and there are 'soft' dollars.

A recovery firm makes their money on recovery - so the more they are able to recover, the higher the annual revenue.

I've had some success in the past on projects where we [me and the client] were speculating on revenue generation.

I gave them a fixed upfront price, but included a percentage of fees they made over a 12 month period utilizing my firm's software effort.

The last one I did - I charged enough upfront fees to keep me in beer and pay the mortgage, but the residuals paid for my office space and a few sports cars.

IF the client can be 'trained' to think about increased revenue, then I would suggest you include in your contract a concept of future revenue sharing.

But !! This usually entails a change of business process - and the 'discovery' period for business process automation can be quite bloody.

Hang in there - tread lightly and carry a few disparate contract types.

mondo regards [Bill]
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