NicheHunter

Hi All,

I have a friend that has a software program that took him about 10 years to develop. I have talked to him and he is willing to give me exclusive rights on marketing it.

Its a cattery managament <breeding facility> software. Right now its onlt targeted towards on cat registration company. He is now making a more generic program to track all animals <mostly exotics> and is editing another for all rescue organizations.

It is going to be offered via instant download, USB flash, as well as on a zip drive.

There are not a lot of these program out there and the adsense ads are few.

Questions I have are

1.) Should I have a contract for exclusive rights
2.) Should I have a contract for each product he produces or make it all inclusive if a contract is done.
3.) He is only offering a $20.00 commission on each <price is $99.00 and up> Should I ask for more since all advertising cost is going to be mine

If you have other things I should be asking, please toss them at me.

Gary

NicheHunter

Hi Stevenhank,

Its not a service. Its a software program. People will be able to print pedigrees for thier customers, maintain health records, print contracts, to help manage thier cat breeding facilities.

There are hundreds of thousands of pedigreed cat breeders in the world. With exotics and eventually horses being included, the sales could be unlimited. He only needs 20 sales a week to quit his job. I was thinking of asking for $30.00 per sale.

Gary

ozduc

By exclusive rights does that mean he will not be marketing it or selling directly?

1) I would definitely get a written contract with him spelling out exactly what the terms are.
2) You could have a general contract and then each time he adds a product you just add an addendum for that product.
3) If you have to pay for ALL the advertising I would ask for a minimum of 50%.

#3 will depend on the answer to my question. If he is going to be creating a marketing campaign and you ride on his coat tails then you may be ok taking less.

NicheHunter

Hi Ozduc,

He will not be doing any marketing. When I mentioned doing "keyword research", he wanted to know what a keyword is. LOL.

50% was my original thought. With the instant download that would be fair, but if he has to purchase and ship USB flash and zip drives, that would put him having to pay out for those and I still get 50% of the sales.

I would think $50.00 per product would be the best way. He doest charge extra for the drives. Just his cost.

Gary