Choosing the right marketing/sales model ... need an advice
[1/7] from: petr::krenzelok::trz::cz at: 16-Apr-2003 11:35
Hello,
this is the first email (there will be other one, I just wanted topics
to be separated) to the list today.
As you may remember, some half year ago I talked about my upcoming
company. So together with my brother and two other friends we set-up
Xidys Systems (X-Interned Dynamic Systems) company, which is supposed to
do some astronomicla electronics (initially) - high quality one of
course! One of our top products is CCD camera, which is nearly ready and
client app should be written in Rebol of course. You can look at
prototype of our upcoming web-site at http://www.xidys.com/prototype.gif
- hope you'll like it, as we do :-)
But enough - that's not why I am writing this email :-) As you can see,
we are supposed to do also some kiosk and other embedded systems. We
already installed first kiosk system in our town and I have to say it is
a real success. Ppl like it, companies like it, we like it ....
Some two year ago, together with my friend Alena, we started to talk
about entire, complex, cool regional info system. Looking more and more
into IOS, I found out, that IOS based system would blown off everything
available here in our region. So we decided to start in small.
Jablunkov, the town I live in, is part of organisation gathering 15
small towns and villages around. Alena works in Jablunkov's info centre.
She decided to write a project for our dream-system to become a reality.
The project will be funded 80% from EU Phare (IIRC) money. We will try
to win the contract (and I hope we will win) with Xidys. What are we
supposed to deliver?
So last week we finally received documentation, and now we have to make
an offer. Good one to win the contract of course. I hope not to your
surprise, we want regional info system to be based upon REBOL IOS. Some
of clients (Links) will be our kiosk systems, which will sync the stuff
to their local storage. So we will make IOS collaborative and publishing
system - well, it already is, we just need to program some additional
reblets, customize it (we need UI-less client for kiosks to sync), and
will try to make it multilingual (at least scripts, as we will have no
access to desktop sources IIRC).
But I have much biiger picture in my mind - commercial system, kiosk
advertisement periods of times for sale for e.g., ticket reservation
system for various occassions.There is good chance other other villages
will join, as initially project funds only 5 kiosks. So the system can grow.
As I already mentioned, it is supposed to be also collaborative system.
Nowadays, there is system called Inforeg (http://www.inforeg.cz) -
various local (=czech, slovak, polish - as we live 5 - 7 km from border
with above countries) city-hall offices should post cultural news events
and it should appear on the web. But the system is pretty dead. Some
year ago we were supposed to take over its development, but I refused,
because of bad deal offered (they could take it over from us without
giving a single reason why - stupid). I can kill the system just by
single installation of IOS! What is more, we will be able to sync the
info to the kiosks. So, as you can see, there is some oportunity for us,
to sell additional IOS seats and expand our system.
As you can see, I have big plans :-)
But, as always, there are some problems. I originally tried to convince
Alena to found a joint company who would own such a system and would be
able to license it, sell commercial advertisement, aern some fees from
booking system, or simply take entry payments for companies to have
access to the system. She is paid right now by city-hall, and to be
honest, I have no confidence in some of ppl there. Martin did web for
Jablunkov and the website was awarded - amongst the 20 best city sites
in CZ, but I could see one clerk from city-hall to take prise, honor,
giving the intervieews. He just told "thanks to all, who helped me", why
in fact he just signed Martin's invoices. Martin just laughed but I
think that that person just stole his IP that way. That is why I am
scared of another possible city-hall moron claiming the system is theirs
in the future and I want to protect myself somehow, trying to think what
way should I deliver the system to them. I was not successfull in
convincing Alena to go for a company and I can understand she would be
put into a big risk that way .....
But they already stole my name - Silesion (the local area is called
Silesia) - I was a bit shocked, when I saw project docs - "delivery of
Silesion", uh. That's why I am writing this long email, to explain you
exactly the situation, for you to give me possible advice - how would
you do it? You know - if system will be successfull, it could be
provided for sale to other regions of CZ and it would also mean other
sales fo RT, other scripts to be written and paind for for some of
rebolers, etc etc. - you surely understand the oportunity. But the last
think I would need is someone claiming it is their system ....
The project doc does not specify, how exactly should the system behave -
it just says about interconnection of kiosks to the system, web portal
output, communication. So let's say I will create that advertisement
system - am I only left to sell them such system as additional module,
or is it normal for such company as ours to ask e.g. for some percentage
of advertisement income? Or just - they will charge 15USD annually per
commercial company to be displayed (searchable) on the kiosks, webportal
- is that normal to ask for the percentage or are we left to sw only
sale? (In that case we would have to ask for much more money )
Maybe the best scenario would be to claim - we are authors of the
system, we run it on our server, and all you do is - you pay us just to
be let to join-in. The problem is - EU rules are very dificult to deal
with - they protect themselves - e.g. it states, that if the winner
tries to apply some additional conditions, the deal will be
discontinued, so I have to be carefull about it all ...
Thanks for any kind of strategy/marketing advice ....
Cheers,
-pekr-
[2/7] from: greggirwin:mindspring at: 16-Apr-2003 10:15
Hi Petr,
Sounds exciting! I know you've been working on things like this for
a long time, so I'm glad to see it starting to really move.
The legal and business issues are tough; hopefully someone will have
some good ideas for you. Whatever advice you get here, you should find
a good lawyer/solicitor on your end when drafting contracts and such.
I would guess that it's unusual to ask for a percentage of the revenue
from advertisers. My approach would be to provide the basic system,
make sure you retain rights to everything you want to sell elsewhere,
and have an ongoing contract for maintenance, customization,
administration, etc. This starts with customizing the kiosk and other
interfaces they get with version 1. Provide a certain number of hours
at no charge to get things running, and build that cost in so they
don't see it as a separate charge right up front but, rather, as a
free benefit.
Another approach is to sell a "base system" and have add-on modules
that can be purchased (e.g. email notifications, various portal
interfaces or feeds - like RSS)
Best of luck with it!
-- Gregg
[3/7] from: atruter:labyrinth:au at: 17-Apr-2003 9:38
Hi Petr,
Looks like you need to protect your IP (Intellectual Property) with
Trademarks, copyrights and / or patents.
Product names and logos can be protected quite cheaply (at least in
jurisdictions I am familiar with) by trademarks. Suitable copyright and
EULA notices can protect your software (draft your own or find a suitable
template on the web to take to your friendly lawyer). Patents are expensive
and may not be usefull for technologies that change rapidly (how much is
the patent on sholder-holstered mobile-phones now worth?).
Regards,
Ashley
[4/7] from: antonr:iinet:au at: 17-Apr-2003 14:04
Petr,
Maybe just ensure there is a photograph of you with
your name and role in the development accessible
under the help menu or "more info" link.
The image will of course be encrypted and inlined. :)
That way, anyone who looks at the system can see who
really put it together.
This way, there is a strong association between
the software and you.
Anton.
[5/7] from: robert:muench:robertmuench at: 17-Apr-2003 8:02
> -----Original Message-----
> From: [rebol-bounce--rebol--com] [mailto:[rebol-bounce--rebol--com]]
<<quoted lines omitted: 6>>
> Silesia) - I was a bit shocked, when I saw project docs -
> "delivery of Silesion", uh. That's why I am writing this long email,
to
> explain you exactly the situation, for you to give me possible advice
- how
> would you do it?
> ...
> But the last
> think I would need is someone claiming it is their system ....
Hi, good business is always very simple. So be careful of complex setup
or constraints you need to be successful. Why not let them state that
it's their system? Setup yourself as the OEM company that has the
know-how. Know-how can't be replaced. Further if one city has a system,
the others want it too. You just need to be sure to do silent sales for
those possible customers.
IMO being the source for know-how that is accessed by different
customers and let them having the fame is a very good business concept.
You get paid for it ;-)) they get the glory. That's what business
consulting is all about. I have done my job best if my customers is King
after I have finished my project. And you can be sure, you will get new
contracts over and over again. Robert
[6/7] from: gchiu:compkarori at: 17-Apr-2003 19:08
On Wed, 16 Apr 2003 11:35:31 +0200
Petr Krenzelok <[petr--krenzelok--trz--cz]> wrote:
>you surely understand the oportunity. But the last think
>I would need is someone claiming it is their system ....
Lodge the source code in escrow to protect yourself.
Also, since it is Easter, consider installing hidden
Easter eggs that only you know about.
--
Graham Chiu
[7/7] from: petr:krenzelok:trz:cz at: 17-Apr-2003 11:25
Robert M. Muench wrote:
>for constraints you need to be successful. Why not let them state that
>it's their system? Setup yourself as the OEM company that has the
<<quoted lines omitted: 8>>
>contracts over and over again. Robert
> Hi, good business is always very simple. So be careful of complex setup
Interesting view, Robert. Thanks all that replied. The time is rather
short - two weeks to complete the offer, then signing the deal and
voila, - I hope the project is gonna be fun mainly :-) I spent 3 hours
negotiating yesterday with the project ppl and I had to alredy cure them
of the view which is impossible to accept imo - they wanted me to assure
them, that if some other party aproaches our company, I can't sell it to
them, if it is neighborough region. I think that it is not even legal
for independent company, to accept such aproach. I can't refuse to sell
to other customers. But you are right - they want to feel being Kings,
they want to consider, who they let join the system - so I told them
that they will have full control - after all - why not to sell
additional IOS seats, right? :-)
... and ... I can't behave as OEM - I have to be a VAR, at least in
regards to RT. Getting EU funds leads you to some limitations - only EU
based products are allowed, so I am in talks with RT, that I just use
thier product (IOS) as a "framework" for our Regional info system, which
we will sell and customize in terms of upcoming project ....
-pekr-
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