RE: FLASH: Pricing Guide (+ Licensing)

[Dorian Nisinson]

Franke and Laura,

	The question of licensing specifically and sale of rights in general

interests me and this conversation has certainly caught my attention.  I

have, in the past, licensed design work to clients and been quite pleased

with the results, though my experience with licensing has been in design

fields other than web development.


	In my case the licensing was the result of having an established track

record with a clearly defined possibility of profit for the client coupled

with enough demand for the work that they needed to offer an inducement to

acquire the work. This very much backs up Laura's point that getting this

kind of contract is not a simple matter of asking for it. This type of

contract is also a usual and customary arrangement in that design field.


	I thought I would add some thoughts on how I see the marketing/negotiation

question  in the hopes of clarifying the issue in my mind and ,in the

process, generating further valuable discussion. Besides, it is interesting

to discuss how we actually go about selling the work we do.


> Proving that you can attract eyeballs is one part of the

>equation on how much your work is worth. Building a permission marketing

>list is another.

	 The problem for most developers, as I see it, is three-fold. First, as you

point out, you must have a product with perceived value to sell. That can be

addressed by appropriate marketing and promotion. We are all trying to do

that.


	The second problem is that Flash web developing is a relatively new

industry with very few business-model conventions. Neither the client nor

most developers have a "standard business practice" to point to and say this

is how people have done business and it is a good model for a business

relationship. So making a workable business model well known to the market

we are dealing with is key. This discussion and the round tables that Franke

is participating in will certainly help to do that.


>No, you are not creating anything on spec. Performance fees are bonuses on

>top of a flat fee that you negotiate up front. Here's an example of how it

>works: We agreed to do an ad campaign for a client. He wanted to pay us a

>middling amount. We knew how much work it was, and that we're

perfectionists

>who will push until it's right in every detail. So, we negotiated a flat

fee

>plus a performance bonus based on sales. We more than doubled our fees. The

>client was thrilled because he saw a direct relationship between our fees

>and his success.


	Your response to the third issue is a great one- you found the clients

point of view and tied the profitability of your project to their success.

It clearly shows how understanding and being able to answer the clients

justifiable questions as to why they should license creative work from a

developer when there are many developers willing to sell them the same

product for a flat fee or even an hourly rate. The answer to that is always

a question of perceived value. What is the developer offering that is unique

or special. The developer needs to have answers for this question. In order

to license a creation to a client, they must see where the value is for

them. This means that the developer must also see where the value is for

both themselves and the client and be able to communicate this clearly. If

the developer doesn't know, how can they expect the client to know. So the

hurdle to be dealt with is first the developer must have a clear picture of

why the client should want to license a creation (from the clients point of

view) and then communicate this to the client effectively. (I am assuming

that we can all see why selling a license or negotiating a performance bonus

is good for the developer)


	The difficulty I see is that so many developers and would-be developers are

so far from the point of considering licensing or any other contract that

isn't I pay you X and you give me y, that talking about it, in some cases,

is like speaking a foreign language. I cannot tell you the number of times I

have read email from developers asking if they should deliver the working

files (in this case the fla files) to the client at the completion of a job.

We are not talking about licensing here now but a simple project assignment

with an agreed upon price for a defined end product with the additional

kicker of giving the working files to the client as part of the job. I was

shocked the first time I heard this and quickly advised them that this was

not the way to do business and make a living. Someone very aptly compared

this demand from a client with ordering a cake from a baker and then

demanding the recipe for the cake too. The part that was truly startling was

the number of times people wrote back saying they disagreed with my advice.

In case my opinion is not totally clear here- Selling for a flat fee is fine

but giving the fla files too is not unless the client pays a great deal more

for that right.


	Given the broad range of skills needed by the developer:

Marketing (effective planning and self-promotion),

Sales (the ability contact people you don't know and to communicate why you

are the one for the job effectively)

Nerves of steel (willingness to walk away from a negotiation if it becomes

clear that an agreement that you can live with will not be reached)

Talent

	As many developers are one-person shops (read cottage industry) that is a

fairly demanding set of requirements, but that skill set is certainly

required. I don't mean to sound negative as I don't feel that knowing what

you need to do is a negative. I just wanted to define the parameters a bit.

I do wholly approve of this kind of discussion on the list as it addresses

questions that are vital to us all. Thanks Franke for starting this thread.


Dorian





-

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

!!!new address!!!

Dorian Nisinson Design

http://www.nisinson.com


Tell Target Interactive diagram, version 3

The Fortune Teller

Flash articles and reviews

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~



flasher is generously supported by...

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

World Animation Celebration - Big Internet Animation Pow Wow Discount Offer


Register before May 25 mention flasher and save 25%!! www.wacfest.com


Be discovered, get a job or have your web series picked up.  A big talent search for Shockwave

and Flash animators is happening May 30-June 4 in Hollywood.  Featuring Rob Burgess, Matt

Groening, Brad Bird and more.   www.wacfest.com

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

To unsubscribe or change your list settings go to

http://www.chinwag.com/flasher or email

helpchinwag [dot] com