Category Archives: Pricing

A New Idea in Software Licensing?

When reading Crossing the Chasm, one is presented with the magic number of $150,000 for a new product’s software license.  Add to that 20% for support and $50,000 for implementation and you’ve got $230,000 (give or take).

There are lots of companies out there who charge for giving support on open-source projects – and that’s a fairly well understood business model.

But what about just charging support based upon the underlying product’s value – and the underlying product isn’t open source?  I would imagine that the vendor doing this would give different levels of support, training, professional services and perhaps even legal indemnification.

What do you think?

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