We built a consumer facing web app and have been growing our user base by iterating on the product for a little over a year. A large media company has inquired about licensing our technology to power a similar function on their site, but in a different vertical (so it wouldn't compete with our own property). I'm looking for advice on how to price the licensing fees for this "white label" licensing deal.
The only method I have so far is estimating the cost to develop this functionality from scratch, then adding a premium for execution risk (the technology is proven) and time value (it is already developed). So the licensing fee = (fully loaded headcount cost * estimated development time * premium).
Any other ways to estimate the licensing fee? Financial metrics (multiples on revenue, conversion rates and customer LTV, etc.) are hard to use because it's a different vertical from ours.