Startups Stack Exchange Archive

What should you ask for during your first volume licensing negotiations?

I’ve got a paid app in the App Store which improves the human-computer interaction. Recently, a medium sized company inquired about volume licensing. This is a great opportunity but since this is our very first enterprise deal, I don’t know what I should be striving to gain from the negotiation.

Should the focus simply be on profit or should I seek something that would have a more intangible value, like mindshare or even just the ability to say “Company XYZ is a proud consumer of our product”?

Answer 600

I would say go for the money!

I think you still can get a reference from, even if you ask them to pay for the product. A reference is also better from a paying customer in my opinion. It’s easy to get praise from giving free stuff away.

It’s not greed to to get paid, it’s just sound business, especially if the company is capable of paying for consumption.

Answer 3533

never ever ever forget the bottom line, you have to eat, your family (if you have one) also have to eat.

Ive spent too long being involved with a startup which ‘jumps’ at every customer that they get (here, have a 40% discount for buying 2 licences, here have a copy of XX product for free because we like you.. etc. )

When you add these numbers up the income from a lot of these sales ends up being less than paying for all the overhead of supplying the licence and ‘free training’ (in the form of skype webinars. )

Don’t go down that path, make sure that you deal for X licences (at a bare minimum) that covers at least all training and support that you will provide as well as all the time that it took to secure the deal.


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