Anyone with experience selling software to organisations?

[Singularity73]

Hi,
Someone has approached me from a large organisation and asking about using my web application in a corporate setting. They want to be able to use it having the data stored within the organisation so they can use proprietary content in the app.

I was thinking of selling a copy of the application (as in give them all the code under some T&C's) which they can setup themselves as I think this would be easier (for me anyway haha), but honestly I have no idea if this is the right move and how to proceed. I think it would be good to integrate some kind of 12-month key that they have to pay each year to renew, but I'm just throwing ideas out.

My app currently uses a 3-tier architecture: PHP backend, MySQL database and client-side JavaScript. However, what complicates things a bit more is I've been working on a new version (which is a lot better) which uses a new stack of technologies (Node.js) and would require a completely different setup so I think they would need to wait for this version to be released.

I have absolutely no experience setting up internal software for companies or whatever this requires and I'm wondering if anyone on here has done a similar thing and is willing to share their advice? I just have no idea what I'm doing and need some guidance xD

Side note: I'm still at uni as well, which is a right pain. Considering dropping out and pursuing this full-time if I can persuade my parents, but that's a topic for another post.

Any help would be greatly appreciated.

Thanks

Tim

 

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[Simon G]

I have not sold software as a private person to organizations, but have long experience in working as a software developer and related roles, also participating in licensing decisions both as seller as a buyer. My advice is to prepare a few packages consisting of following components:

1) The software itself (with or without source)
2) Documentation (for internal support and/or end users)
3) Support (think about reaction times, pricing, how many hours per month/year etc.)
4) Training (e.g. 4-hour training for support staff, 4-hour training for end users)
5) Updates

You could, for example offer these three packages. The client has maybe something else in mind, but they serve as a nice conversation starter.
1) Software without right to modify, documentation, 4 hours of support per month, no training, 12 months updates for n $
2) Software without right to modify, documentation, 8 hours of support per month, one day of initial training, 12 months updates for 1.2 x n $
3) Software with right to modify, documentation, 16 hours of support per month, two days of initial training, 12 months updates for 2 x n $

When drafting a license agreement, you should make clauses for
a) where the software may be used (e.g. restrict the use for the particular company)
b) prohibition of reverse engineering if you don't want the client to modify your software
c) warranty, restriction of your liabilities
d) redistribution rights (you probably want none)
e) intellectual property rights
Disclaimer: this is no legal advice.

According to my experience, corporate clients often conveniently forget to renew licenses (often if someone notices the license expired, he doesn't care enough to tell somebody in charge of that) so I suggest using some mechanism to prevent that (without irritating the client).

 

[Singularity73]

I have not sold software as a private person to organizations, but have long experience in working as a software developer and related roles, also participating in licensing decisions both as seller as a buyer. My advice is to prepare a few packages consisting of following components:

1) The software itself (with or without source)
2) Documentation (for internal support and/or end users)
3) Support (think about reaction times, pricing, how many hours per month/year etc.)
4) Training (e.g. 4-hour training for support staff, 4-hour training for end users)
5) Updates

You could, for example offer these three packages. The client has maybe something else in mind, but they serve as a nice conversation starter.
1) Software without right to modify, documentation, 4 hours of support per month, no training, 12 months updates for n $
2) Software without right to modify, documentation, 8 hours of support per month, one day of initial training, 12 months updates for 1.2 x n $
3) Software with right to modify, documentation, 16 hours of support per month, two days of initial training, 12 months updates for 2 x n $

When drafting a license agreement, you should make clauses for
a) where the software may be used (e.g. restrict the use for the particular company)
b) prohibition of reverse engineering if you don't want the client to modify your software
c) warranty, restriction of your liabilities
d) redistribution rights (you probably want none)
e) intellectual property rights
Disclaimer: this is no legal advice.

According to my experience, corporate clients often conveniently forget to renew licenses (often if someone notices the license expired, he doesn't care enough to tell somebody in charge of that) so I suggest using some mechanism to prevent that (without irritating the client).

Thanks for the advice Simon. Got some more questions

1). Will I have to find a lawyer to help me create the license agreement? If so, any advice how you find lawyers who aren't super expensive, I'm a student with little money...
2). Is it okay to just give them the software code and their IT department can set it up themselves? Or do I need to create some instructions of how to do it, or do I do it myself for them somehow?
3). Should the licence key automatically renew after 12 months, so they keep paying, or should it just stop working after 12 months and they have to manually renew it?

Sorry for all the questions haha