How do you calculate MAINTENANCE FEE for Custom Software?

2 replies
Let suppose you have developed a management software for a company. You charged it with 15k and you give them the source code (requisit).
How do you calculate a maintenance cost and what kind of actions you include as maintenance?

I've seen some companies which charges a month fee for using the program + any change or modification required. 40$/hour.

Other companies don't charge a monthly fee, they charge only when a change is requested.

And there is who charges a fixed monthly fee whch covers any change requested
(with a maxinum of monthly hours...)

What is your experience with this situation? Which maintenance policy works better for both parts?

#calculate #custom #fee #maintenance #software
  • Profile picture of the author morg2k2
    On IT industry the software/service company normally charges 20% per year of the software price. Normally this fee is upfront with the software purchase or afterwards when the free support ends (3 months - 12 months, etc)
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  • Profile picture of the author DIABL0
    Charging such is nuts if it comes with source code and now belongs to the company you developed it for. You could certainly charge them to modify/update it based on their requests. I would tell you to take a hike if you tried to charge me after I take delivery for anything other than modifications/updates which would be on per job basis only.

    If you sell software without the source code/rights, then that would be a different story. Then you could charge such. However, I would hope that you are providing worthwhile upgrades for it / support.

    I have a high volume email platform that I sell with and without source code/rights and in both cases I don't charge a maintenance fee, but charge for any/all future programming/support. This is also software that I use and when I develop new features, I will make them available optionally for a fee.

    Those that buy it with source code/rights no longer even need to work with me anymore if they chose, as they could hire someone else, since they have the source code/rights.
    How to Build LARGE EMAIL LISTS on a Budget and MONETIZE Like a PRO
    19 Years Exp . . . . . . . . . . . . Email - CPA - PPL
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