Best way to license a web app

Hi,

I created a web app that helps users create web content for a particular niche. My current business is relatively small, but growing. I’ve just been approached by an organization that may want to license my product which would lead to a huge spike in traffic. One option I have is to keep the code on my server, and then charge them for support, as well as web traffic. The other option is to give them the code “as-is”, with documentation and upfront support to get them started, and then allow them to modify it (but not sell it), so that they are responsible for future-proofing it. As this is the first time that I may go through this process, it would be great to have some insight/advice from someone who has traveled down this road.

Thanks!

-Eric

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A third option, if the business is small but the concept and execution are good, is to sell them the site outright. I have experience in website sales, so if that’ something you’re interested in, I’d be happy to help.

You could also do this as a straightforward affiliate deal, where they pay you a flat fee per user/visitor/unit of content. For simplicity, you could factor in support fees in the rate.

The other option is closer to a licensing fee, which is also good, but which keeps you on the hook for upkeep.

What’s your end goal? To make a regular income from this, or to make a lump sum and move on to another project or client?

Hi Ophelie,

Thank you for your input! And, based on the nature of the business, I’d like to hold onto the site and make regular income from it.

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