A client has approached us to build a commercial application that they believe they can market; we think the idea is a good one and we believe that they will be able to market it successfully — we even created a similar application (those much lesssophisticated) for our own use a while back. We also believe that our firm can market the application successfully.
The client has no technical skills and no budget for the project. As such, they bring the idea and a market to the table. We are willing to contribute our software development experience and marketing resources on the belief that the application will be profitable. The application is a relatively simple one and we expect it to cost 30K – 50K to develop. We would also be responsible for producing and supporting the application.
We are looking for ideas on how to design an agreement that is mutually beneficial to our two companies. We have brainstormed a number of approaches that involve sharing revenues based on which company made the sale: if they sell, they get 80% of the net profits of the sale (i.e., after production and support costs) and visa versa.
Any advice or experience you can share with us is appreciated.
Thanks for your time,
Bob Crimmins