First customer to my business

New GuyNew Guy Posts: 2subscriber Member
I started a business with some friends that sells software.

We started running a test period of our software in one of the biggest companies in that area.

The software worked excellent BUT they now want it licensed practically for free (about 1000$/month , infinite licenses, for a software that took us about 4-5 months of work). 
They say they can simply hire someone to do it for them and then they will have the code forever and wont need to even pay a monthly fee.

They are the biggest players in the market and they know we are just starting out.

- Is it worth giving out your program practically for free to get that enormous first customer and a ton of credibility for the future?
- Aren't we risking devaluing our software? when other companies from the same type of business hear of this, it can happen again. They will just say I'll bring someone to develop this for me once, instead of paying a monthly fee

Comments

  • tuahbaotuahbao Posts: 36subscriber Bronze Level Member
    Hi New Guy,

    Business is all about making profits. If you are giving it out for free (permanently), then there is no point of starting out the business. In fact, you are operating a non-profit organisation, or simply CSR project.

    The question is whether you want to treat it as part of your 'marketing cost'. In other words, you are giving it out for free to exchange for a great testimonial or interview. You must be allowed to publish that on your website or you may want them to list you as reliable vendor on their website (since they do not pay you a single cent). If they refuse, then I don't see any reason to work with them because it won't be a win-win situation.

    On the other hand, if you are afraid of 'spoiling' the market by giving something free, then limit it to charity organisations (non-commercial). You may go find and offer them free software. It will also enhance your credibility or reputation.
    Tuah Bao
    Accountant & Marketing Consultant
    Free marketing idea & advice at https://peopleaffiliate.com/services
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