Licensing fees

[beninfrance]

Does anyone know about licensing?

My business is software that I feel online for schools as an app and a plug in and I want to license it to other markets and have interested parties who want to get involved but I dont know how much to charge as a licensing fee.

My product is fully automated and customers sign up for a trial and buy it all online and we offer support if they need it, our average price is around $1500 and it doesn't take much selling as the customers really need our product as it solves a massive problem.

Any ideas what is the right fee to charge and any ideas about setting it up or where to start.

Thanks

Ben

[vangogh]

I don't, but I didn't want your thread to get lost so i'm replying just to keep it active.

Who would you be licensing the software to? Couldn't you just continue selling it like you are? I would think you charge less for licensing than for average sale with the assumption you'd be selling more licenses. I suppose you can look at this as a learning experience. License things short term at first so you can adjust the second time around.

Sorry I can't be more helpful, but hopefully I helped bring your thread to the attention of someone who can help.

[beninfrance]

Thanks for the feedback Vangogh,

The idea is to license or find resellers to promote the software in new markets. We have captured the market in our country and we could just push the marketing in other countries but we really need local people on the ground with local knowledge, languages etc.

It is more about licensing somebody to sell our product in their country.

[vangogh]

Is it more that you plan on selling the software at the same price like you do now and you're looking for someone to do the selling in other countries? If so I think in the range of 10-15% is usually a going rate for that kind of work. Another thought is to pick one country to expand into and then try to hire someone in that country to be on the ground.

Is your business just you or are there other people? If there are other people would someone consider moving to another country for a time and opening an office to get started there. That person could hire someone who would eventually take over in that country. If something like that worked you could repeat it one country at a time.