Hi yall hope the weekend was great. I was wondering how does one get to do valuation for a software that one has developed and wants to sell?Your assistance will be highly appreciated Regards Kibe William.
This should be interesting the kind of responses you get on the list. Some project like the Linux kernel is estimated to be worth thousands of man-years in effort and reasonably comparable to rocket science in complexity. Its quality is also fairly sterling yet it is given away gratis. There are more examples of the same. I understand that the motivation behind selling software is capitalism i.e rewarding talent and time dedicated to an important piece of work by a highly qualified individual. Some people just do not think this is not the right way to solve problems in the field of computer science and software engineering and by extension Mathematics. The extracts below give interesting insights on a related topic. [1] http://www.bizjournals.com/seattle/blog/techflash/2009/06/How_a_Microsoft_ve... [2] http://keithcu.com/wordpress/?page_id=2201 [3] http://www.amazon. com/After- Software- Wars-Keith- Curtis/dp/ 0578011891/ Martin. On 5/5/13, William kibe <njoroge.kibe@gmail.com> wrote:
Hi yall hope the weekend was great. I was wondering how does one get to do valuation for a software that one has developed and wants to sell?Your assistance will be highly appreciated
Regards Kibe William.
Great articles thanks alot.Atleast a fresh Idea has been blended in me :-). On May 5, 2013 8:22 PM, "Martin Chiteri" <martin.chiteri@gmail.com> wrote:
This should be interesting the kind of responses you get on the list. Some project like the Linux kernel is estimated to be worth thousands of man-years in effort and reasonably comparable to rocket science in complexity. Its quality is also fairly sterling yet it is given away gratis. There are more examples of the same. I understand that the motivation behind selling software is capitalism i.e rewarding talent and time dedicated to an important piece of work by a highly qualified individual. Some people just do not think this is not the right way to solve problems in the field of computer science and software engineering and by extension Mathematics.
The extracts below give interesting insights on a related topic.
[1] http://www.bizjournals.com/seattle/blog/techflash/2009/06/How_a_Microsoft_ve...
[2] http://keithcu.com/wordpress/?page_id=2201
[3] http://www.amazon. com/After- Software- Wars-Keith- Curtis/dp/ 0578011891/
Martin.
On 5/5/13, William kibe <njoroge.kibe@gmail.com> wrote:
Hi yall hope the weekend was great. I was wondering how does one get to do valuation for a software that one has developed and wants to sell?Your assistance will be highly appreciated
Regards Kibe William.
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I would definitely consider the buyer and their buying muscle, this is to say that you would not sell to a bank the same you would an individual or smaller org. For example a bank will buy their banking software several hundred million shillings but then again at the end of the year declare a few billion in profits which simply means they have already recovered the sw investment.. There is never a maximum to how much you can sell a sw, a minimum maybe. So factor in what the sw will be used for, by whom and ofcourse the amount of sweat you have put in. There is also a maintenance fee which is usually a percentage of the total cost mostly charged Any new requirements are charged separately. This means that you must state clearly what the software will achieve and anything that falls out of this scope is treated as a new requirement and therefore charged afresh. At the end of the day though, its really the buying power of your client that dictates the final figure. George On May 5, 2013 7:41 PM, "William kibe" <njoroge.kibe@gmail.com> wrote:
Hi yall hope the weekend was great. I was wondering how does one get to do valuation for a software that one has developed and wants to sell?Your assistance will be highly appreciated
Regards Kibe William.
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George so you are saying that the number of users who are going to use the software should be factored in but how do u know the number of users lets say its to go cross africa because thats the intention of the client.How do you factor that interms of numbers of one uses a ballpack figure?? Regards Kibe. On May 5, 2013 10:18 PM, "george" <theonlydamnedavailablename@gmail.com> wrote:
I would definitely consider the buyer and their buying muscle, this is to say that you would not sell to a bank the same you would an individual or smaller org. For example a bank will buy their banking software several hundred million shillings but then again at the end of the year declare a few billion in profits which simply means they have already recovered the sw investment..
There is never a maximum to how much you can sell a sw, a minimum maybe.
So factor in what the sw will be used for, by whom and ofcourse the amount of sweat you have put in.
There is also a maintenance fee which is usually a percentage of the total cost mostly charged
Any new requirements are charged separately. This means that you must state clearly what the software will achieve and anything that falls out of this scope is treated as a new requirement and therefore charged afresh.
At the end of the day though, its really the buying power of your client that dictates the final figure.
George On May 5, 2013 7:41 PM, "William kibe" <njoroge.kibe@gmail.com> wrote:
Hi yall hope the weekend was great. I was wondering how does one get to do valuation for a software that one has developed and wants to sell?Your assistance will be highly appreciated
Regards Kibe William.
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Licenses. The software engineers in the forum can share how they implement end user licensing. George On Mon, May 6, 2013 at 7:25 AM, William kibe <njoroge.kibe@gmail.com> wrote:
George so you are saying that the number of users who are going to use the software should be factored in but how do u know the number of users lets say its to go cross africa because thats the intention of the client.How do you factor that interms of numbers of one uses a ballpack figure??
Regards Kibe. On May 5, 2013 10:18 PM, "george" <theonlydamnedavailablename@gmail.com> wrote:
I would definitely consider the buyer and their buying muscle, this is to say that you would not sell to a bank the same you would an individual or smaller org. For example a bank will buy their banking software several hundred million shillings but then again at the end of the year declare a few billion in profits which simply means they have already recovered the sw investment..
There is never a maximum to how much you can sell a sw, a minimum maybe.
So factor in what the sw will be used for, by whom and ofcourse the amount of sweat you have put in.
There is also a maintenance fee which is usually a percentage of the total cost mostly charged
Any new requirements are charged separately. This means that you must state clearly what the software will achieve and anything that falls out of this scope is treated as a new requirement and therefore charged afresh.
At the end of the day though, its really the buying power of your client that dictates the final figure.
George On May 5, 2013 7:41 PM, "William kibe" <njoroge.kibe@gmail.com> wrote:
Hi yall hope the weekend was great. I was wondering how does one get to do valuation for a software that one has developed and wants to sell?Your assistance will be highly appreciated
Regards Kibe William.
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Hi William We do several systems for several people since 2009, and have sold software to cybercafes all the way to mobile networks. These are the steps I used to use, and we still use when we price our systems 1. What are you happy with, and satisfied with and can say, If im paid X, I'm happy even if another client bought a similar thing for 100 times more 2. What are the market going rates for your software type, type here means financial, telecommunication, banking, insurance, custom systems etc 3. How much potentially will the client make in order to cover the cost of software 4. And most important, what will you be happy with per month supporting the software 5. Buying power of the client, bigger clients tend to spend lots more on software 6. How can you justify the price of the software to client, for example you can tell him if you buy my software, you need 1 person in accounts instead of 20 7. Who will eventually own the IP 8. Does client want source code? 9. (this always works) you can charge a whole lot more if you package it as a full solution instead of software. You do installation of software plus you bring in hardware, do training, print out manuals and take their staff to Naivasha for a week of training where you give them certificates on how to use your software, blah blah blah and so on. Point here is create your own list that you will be happy with; to set up, support and upgrade then multiply by 2 :) On 6 May 2013 12:14, george <theonlydamnedavailablename@gmail.com> wrote:
Licenses. The software engineers in the forum can share how they implement end user licensing.
George
On Mon, May 6, 2013 at 7:25 AM, William kibe <njoroge.kibe@gmail.com>wrote:
George so you are saying that the number of users who are going to use the software should be factored in but how do u know the number of users lets say its to go cross africa because thats the intention of the client.How do you factor that interms of numbers of one uses a ballpack figure??
Regards Kibe. On May 5, 2013 10:18 PM, "george" <theonlydamnedavailablename@gmail.com> wrote:
I would definitely consider the buyer and their buying muscle, this is to say that you would not sell to a bank the same you would an individual or smaller org. For example a bank will buy their banking software several hundred million shillings but then again at the end of the year declare a few billion in profits which simply means they have already recovered the sw investment..
There is never a maximum to how much you can sell a sw, a minimum maybe.
So factor in what the sw will be used for, by whom and ofcourse the amount of sweat you have put in.
There is also a maintenance fee which is usually a percentage of the total cost mostly charged
Any new requirements are charged separately. This means that you must state clearly what the software will achieve and anything that falls out of this scope is treated as a new requirement and therefore charged afresh.
At the end of the day though, its really the buying power of your client that dictates the final figure.
George On May 5, 2013 7:41 PM, "William kibe" <njoroge.kibe@gmail.com> wrote:
Hi yall hope the weekend was great. I was wondering how does one get to do valuation for a software that one has developed and wants to sell?Your assistance will be highly appreciated
Regards Kibe William.
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Niiiicceee very nice list and honestly I had never thought of it in these lines and have gotten an idea in a great way.Thank you very much Regards Kibe William. On May 6, 2013 6:14 PM, "Jangita Nyagudi" <jangita.nyagudi@gmail.com> wrote:
Hi William
We do several systems for several people since 2009, and have sold software to cybercafes all the way to mobile networks. These are the steps I used to use, and we still use when we price our systems
1. What are you happy with, and satisfied with and can say, If im paid X, I'm happy even if another client bought a similar thing for 100 times more 2. What are the market going rates for your software type, type here means financial, telecommunication, banking, insurance, custom systems etc 3. How much potentially will the client make in order to cover the cost of software 4. And most important, what will you be happy with per month supporting the software 5. Buying power of the client, bigger clients tend to spend lots more on software 6. How can you justify the price of the software to client, for example you can tell him if you buy my software, you need 1 person in accounts instead of 20 7. Who will eventually own the IP 8. Does client want source code? 9. (this always works) you can charge a whole lot more if you package it as a full solution instead of software. You do installation of software plus you bring in hardware, do training, print out manuals and take their staff to Naivasha for a week of training where you give them certificates on how to use your software, blah blah blah
and so on.
Point here is create your own list that you will be happy with; to set up, support and upgrade then multiply by 2 :)
On 6 May 2013 12:14, george <theonlydamnedavailablename@gmail.com> wrote:
Licenses. The software engineers in the forum can share how they implement end user licensing.
George
On Mon, May 6, 2013 at 7:25 AM, William kibe <njoroge.kibe@gmail.com>wrote:
George so you are saying that the number of users who are going to use the software should be factored in but how do u know the number of users lets say its to go cross africa because thats the intention of the client.How do you factor that interms of numbers of one uses a ballpack figure??
Regards Kibe. On May 5, 2013 10:18 PM, "george" <theonlydamnedavailablename@gmail.com> wrote:
I would definitely consider the buyer and their buying muscle, this is to say that you would not sell to a bank the same you would an individual or smaller org. For example a bank will buy their banking software several hundred million shillings but then again at the end of the year declare a few billion in profits which simply means they have already recovered the sw investment..
There is never a maximum to how much you can sell a sw, a minimum maybe.
So factor in what the sw will be used for, by whom and ofcourse the amount of sweat you have put in.
There is also a maintenance fee which is usually a percentage of the total cost mostly charged
Any new requirements are charged separately. This means that you must state clearly what the software will achieve and anything that falls out of this scope is treated as a new requirement and therefore charged afresh.
At the end of the day though, its really the buying power of your client that dictates the final figure.
George On May 5, 2013 7:41 PM, "William kibe" <njoroge.kibe@gmail.com> wrote:
Hi yall hope the weekend was great. I was wondering how does one get to do valuation for a software that one has developed and wants to sell?Your assistance will be highly appreciated
Regards Kibe William.
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participants (4)
-
george -
Jangita Nyagudi -
Martin Chiteri -
William kibe