Hot answers tagged distribution
6
Preparation work:
Workout your wholesale rate by volume. Some buyers will take 100s, others may take 10,000, they will both ask for "a deal" ... have these answers ready or you may sign a deal which sees you loosing money (or may loose the prospect because your too high). Start with 3 or 5 "levels" of bulk buying and work out your costs of production and ...
4
Actually the Android Market and the Apple Appstore is the distribution service. As most people can use them, there is no real need in a distributor, who eats some of money.
What you could do is the following:
1) Try to find a App Marketing Service provider. They already do promo stuff - they might be able to add your app to the stores. I could find some ...
4
There's no tax on S-Corp distributions. There's tax on your income. It is called "ordinary income" and is taxed at your marginal tax rate. There's no difference between the first 50K you got as salary and the second 50K you got as distribution in that respect - they're both taxed at your ordinary income rates. The salary portion is also subject to the ...
4
There are three major reasons why companies buy through a software reseller:
This is the only way they are allowed to purchase software (for all kinds of goofy reasons).
They are looking for a discount from the list price. (Large companies that purchase a lot of items from a reseller can often get part of the reseller discount passed on to them.)
The ...
3
There's no benchmark, but it does sound fishy. 1% for free labor in a completely nascent company doesn't compute.
Simple metric: If it fails your own gut-check, don't do it. Yes, that's a fair measure even if you don't have experience at a startup. It's better to pass on a good company than to hook up with a bad one.
2
Im curious to why your investor would want to leave after your company is launched and making money. If you feel your company is solid and has potential then you really need to scramble to either buy him out personally or find an investor to take his place.
My personal rule of value is that a company is worth about 2-3 times what it earns in subscription ...
2
Distributors can be a good strategy to sell product outside of your core market.
To identify the distributor that might work well with you, try to identify which software companies are complementary to your product and pursue their distributors. For example, http://www.focuseducational.com/html/reseller.php
Alternatively, there may be non-traditional ...
2
Gets asked a lot, and the short answer is "it depends"
These may help you:
Forming a new software startup, how do I allocate ownership fairly?
Internet startup - ownership share - developers vs biz people?
Fourth co-founder but first developer
2
There are several questions that you present -- all of them circulate around the desire to make sure that you set up and communicate to your corporate officers the structure of the company properly and in a way that will make
My question is pretty broad, but I am
just wondering the next logical steps
to take in establishing and
distributing equity ...
2
While I can see what your going after you can't pay everyone based on client sales. If you wanted to do that make it an employee owned company. While everyone does work hard, they can be motivated in other ways besides a direct monitory value. Company funded lunches, outings, relax lounge, cooler office digs etc. You can set something up yearly that if X is ...
2
You are asking how to give incentives, but I suspect that's not really your goal.
You want to motivate people and also increase staff retention, don't mistake that for the same as incentives.
I would recommend watching this "sketchnote" from a talk by Daniel Pink on motivation http://www.youtube.com/watch?v=u6XAPnuFjJc.
The key takeaways are that people ...
1
This is not a short answer I hope they allow all of this to be placed. I would like to know a bit more information. First I see the creative and production side of this venture but what about the other critical component. SALES. It appears the factory wants to make better Margin by having their own collection and not just manufacture for other brands. A good ...
1
I am not qualified to answer your tax questions. However, I have helped more that 30 foreign clients form and build businesses in the U.S. Based on my experiences with those clients, I will offer the following:
There is no online incorporation service that can fully and properly meet the needs of foreign entrepreneurs coming to the U.S.
My blog has a large ...
1
There are thousands of download sites that will list your software. A few, like CNET and Tucows, will host your files for you and count the downloads. Most of these sites require you to build a PAD file (Portable Application Description) for your software before you can list software on their site.
Except for the largest sites (CNET & Tucows) virtually ...
1
The minimum you should ask for is the customer's name and what industry/nature of business they are in.
Both are crucial, the first in case the re-seller sudden decides to close shop and stop providing support, having the company name and possibly contact lets you take over with less issues. It's particularly important if the re-seller is a one man ...
1
The relationship you have with the customers you acquire through resellers should be spelled out in your agreement with the reseller. Who is responsible for support, who gets paid for support, who gets to sell follow on products or services are just some things you'll want to sort out up front.
1
There are really good reasons that the affiliate networks for accessing retails can company steep commission levels. There are also really good reasons that hiring a experience sales person in this market space is going to be a significant monthly expense.
Retail Expensive to Penetrate
Retail is a crowded market with a significant number of vendors ...
1
Penetrating the SMB merchant market is extremely difficult, and I would recommend against the standard SEO/SEM type solutions because it's unlikely that these merchants are actively looking for a solution - they are mostly running their business, and when they have a few minutes late at night they might do some searching.
So, rather than try to "generate ...
1
So life is a negotiation -- Your MBA should have told you so much :-)
It sounds like you are just the two of you (for now)... Difference is that he has put more time (=money) into the legacy, but that you somehow are not using that as a base but starting from scratch in a new venture.
Offer to match his investment and go 50-50 on the ownership.
If that ...
1
First off, drop any talk about titles. Title's don't mean shit, especially in a company that hasn't started yet.
You guys have a confusing business relationship, especially since you are working for this old company while building the "new" company.
First off, are you doing all this work for free?
Secondly, is this equity for the new company only or both ...
1
The key question is what is your friend contributing to the success of the startup? It looks like for now, almost nothing (apart from cash).
So 80/20 split sounds fair to me for now. When/if he joins full-time, you can issue him stock options at that point and figure out how much, depending on how far along you are, and how critical he would be.
To put it ...
1
Well a lot of it depends on where you money is coming from.
If your charging
The end user (per click, per month, per X). Then you need a starting market base of key users and respond to their needs, encorange them to pass the word on, targeted advertising to key market segments.
Advertisers to contact the end user (impressions/clicks for targeted user ...
1
Definitely unusual, but that does not make such a provision impossible. However, proposing such a provision might make you look as if you do not know what you are doing or you are unreasonable.
A more mainstream approach might be for you to disclaim all warranties for IP infringement outside the EU, and for each party to waive any right of indemnification ...
1
It is unusual to ask the distributor to indemnify you, the developer, for IPR infringement. After all, you are the one who knows how you developed your product (i.e. did you copy it? did you hire someone to develop it and under what conditions?). In almost all distribution agreements I have drafted and negotiated against, it is the startup/developer of the ...
1
First make sure you have a good plan for support. Either you have the cost of support built into your product price or you offer various support packages to purchase on top of the software. People who are going to sell your software for you will want to know it can be supported.
Also, be careful with agreements you make with resellers. If possible stipulate ...
1
That depends on the kind of reseller you are talking about. If you have some sort of signed reseller agreement you might be able to restrict resellers by territory. That might, or might not, fix your problem.
In general, it is not possible to prevent reseller competition. Worse yet, if you are offering your reseller a substantial discount they might be able ...
1
I believe it depends on the content itself.
If the content is a $19.99 "101 ways to improve your SEO and make $1 million dollars while sleeping on the beach" book I think one would do better by selling the PDF directly through their site. That way, control of the pitch & close statements can be strongly managed to encourage conversations. Also, ...
1
I don't know what you product is, but if you are small company (one developer) then probably it is better to start with one product. Then, if there is particular interest in splitting this product in two or more products, you can do it.
Form the marketing point of view, 3 landing pages is good idea, targeting different way of using the product.
I always ...
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