Am I giving too much to my business partner?

Discussion in 'Growing and Managing a Business' started by mikewelsh, May 4, 2011.

  1. mikewelsh

    mikewelsh
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    We're offering a popular website a free web app that can drive more traffic for their website. Usually we sell this comprehensive app for USD10,000 and more.

    Our offers are,
    -They help to market the web app in their site
    -We do not share with them the user database
    -They can find their sponsors and they can place their ads on the web app
    -We can find my own sponsors too

    Am I giving too much away for free? Should I be ALSO getting a revenue cut from the sponsors they got?
     
  2. Fergal

    Fergal
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    Have you taken some time to analyse the benefits you will receive from giving this app to the website? Will these benefits help to move your business forward and take you to a new level?

    What I'd suggest is that you analyse the benefits the other website will receive from using your app. Try to put a rough figure on the value of those benefits to the owners of the website. Then look at the other options that are available to them and estimate how much it would cost them to avail of one of those other options. This will help you to be clearer on the financial value of what you are offering to the website.

    Also look at the situation to see if there is anything the website could give you that would not cost them very much but that could be of significant benefit to you. Perhaps they could place a link to your site on their homepage or maybe they could publicise your app in one of their newsletters?

    Do these suggestions help you at all?
     
  3. aapkae

    aapkae
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    i think yes you are giving more then what they deserve,why use them to make your app more popular when you can do it yourself using SEO
     
  4. mikewelsh

    mikewelsh
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    Fergal, you helped A LOT! :)

    Ok, they will advertise the app in their main page.

    And appakae, well, SEO takes time and the app we're doing is pretty niche. Hardly anyone google the keywords.
     
  5. getlivechat

    getlivechat
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    In this case what u r doing is right but...may be u could limit the number of people you are giving this app on a free basis and also the time period they could use (like 1year or something). Ask them to refer you to their clients and get them to pay for it.
     
    #5 getlivechat, May 5, 2011
    Last edited: May 5, 2011
  6. Fergal

    Fergal
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    Thanks for the feedback mikewelsh, I hope it goes well for you and wish you the very best of luck with it. You would also be very welcome to advertise your app in the relevant section of our Member Ads & Marketplace.
     

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