App licensing advice? What to charge?

Discussion in 'iOS Programming' started by nomar383, Oct 27, 2010.

  1. nomar383 macrumors 65816

    nomar383

    Joined:
    Jan 29, 2008
    Location:
    Rexburg, ID
    #1
    A company approached me to license a re-branded version of my iPad app. I would do the re-branding and they would simply pay a licensing fee for the binary.

    Any idea what I should charge for something like this?

    We're talking about an app I've spent hundreds of hours on, but I have never struck a deal like this before.
     
  2. Luke Redpath macrumors 6502a

    Joined:
    Nov 9, 2007
    Location:
    Colchester, UK
    #2
    You need to find a balance between how much it has cost you to develop and how much you feel they will pay for it. What value does it have to them? Do they plan to sell it? Will it affect sales of your own app?

    Nobody can really answer these questions but you, but it's a starting point.
     
  3. Apple OC macrumors 68040

    Apple OC

    Joined:
    Oct 14, 2010
    Location:
    Hogtown
    #3
    Go really high ... if he chokes on his coffee, then come down a bit
     
  4. MacPioneer macrumors member

    Joined:
    Oct 26, 2010
    #4
    Use the flinch test. You name a reasonable price, and if he doesn't flinch, you add "...each". :D
     
  5. nomar383 thread starter macrumors 65816

    nomar383

    Joined:
    Jan 29, 2008
    Location:
    Rexburg, ID
    #5
    It wouldn't compete directly with my sales. They want to market it to their own customers specifically, but they don't want to write their own app.

    I asked for $1000 for the initial version with $100 for optional updates. We'll see! haha
     
  6. firewood macrumors 604

    Joined:
    Jul 29, 2003
    Location:
    Silicon Valley
    #6
    Figure out how much it would cost this company to go out and hire someone else to rewrite a look-alike rewrite of your app, and how much they would lose in opportunity cost by waiting that long. That's the high limit. The low limit is to cover any of your incremental time and hassle in dealing with them. Everything in between is in the art of sales negotiation and poker bluffing.
     
  7. kyzen macrumors regular

    Joined:
    Feb 8, 2010
    Location:
    Colorado
    #7
    $1,000 seems low to me, but you're a better judge of the value of your time.

    Good luck!
     
  8. Luke Redpath macrumors 6502a

    Joined:
    Nov 9, 2007
    Location:
    Colchester, UK
    #8
    To be honest, that is very cheap. I something had taken me 100 hours, then, I would be looking at charging something closer to the cost if I had developed it from them from scratch - at least in the $60-80k range.

    $1000 is what, a couple of days work at a typical rate?
     
  9. nomar383 thread starter macrumors 65816

    nomar383

    Joined:
    Jan 29, 2008
    Location:
    Rexburg, ID
    #9
    I wish. It will take me about an hour to do the rebranding for them and I don't think they are expecting to make more than 1K in sales from it (EVER).

    He ended up offering me 600USD for it.

    I am not a full-time developer and do this as a hobby. I think half of my new MacBook Air makes me happy :)

    Someday maybe I can ask for 80K for an app haha
     
  10. EnderTW macrumors 6502

    Joined:
    Jun 30, 2007
    #10
    He is not only paying for the rebranding he is also paying for the application to use.

    Ie apple wouldn't sell the iPhone os for only one hour work to change it to Microsoft os.
     

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