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Freelance & Negotiating Prices?

KidCudi10KidCudi10 Posts: 60Registered Users
I recently graduated from college and thought I'd give freelancing a go. I recently spoke to a small company who would love to have an app built. My price is $7500. They accepted it but they can only afford $5500 at this time. They mentioned several options, but I don't know which one would benefit me more.

Option A: They'll pay $5500.00 upon delivery, and for the next two years they'll give me a dollar per app sold. With a minimum of $1,000 at the end of the two years.
Option B: They'll pay 6000 in addition to a dollar per app sold for the next year.
Option C: They'll pay $6500 and no additional amount.

This is a medical app specifically marketed for nurses and doctors. Does anyone have any experience with this? Is there a better option that I could propose? I would love to hear some of your experiences with any of these options. I think they might sell their app for $2.99-$3.99. Thank you all!!!

Replies

  • mediaspreemediaspree FloridaPosts: 901Registered Users @ @ @
    They need you more that you need them. Sure they could go to another developer but I doubt they will get anything of quality for $5500 + profit share of an unproven app. That being said, you probably are also looking to resume build being right out of school. So for that I would take the money up front with option C with the caveat that future updates/additions (which they will inevitably need) will be done at an hourly rate.
  • KidCudi10KidCudi10 Posts: 60Registered Users
    Thanks mediaspree! When I quoted them for $7500 I included a full year of support for any bugs or fixes that could occur if a new ios version were to come out (excluding adding new features or content). But since they won't be paying $7500, would you recommend I just exclude that part that from the agreement and just let them know that if an update is needed then I would charge hourly?
  • BrianSlickBrianSlick Treadmill Desk Ninja Posts: 10,676Tutorial Authors, Registered Users @ @ @ @ @ @ @ @
    Don't do anything without some money up front.

    I also recommend against doing anything that depends upon their sales. If you want to agree to a delayed amount for the final payment or two, that's one thing. But it should be "no later than 6 months, $500 due, by 12 months, $500 more due", etc.

    If you are going to do fixed-fee work, then make sure the deliverable is carefully defined and documented up front. Nothing like being half way done only to have them start adding features. I would probably define an hourly rate for any work that strays from the original specification. But then I only do hourly work, so I'm biased that direction.

    If they can only afford $5500, then I don't understand how options B and C are available. Sounds to me like they can afford $6500. So at this point, it is merely negotiation, and that's fine. Your $7500 is just a guess. The longer-term options are just hassle, and not really that much money. Get something up front, and then regular payments and milestones, and something upon delivery, then be done with it.

    And don't agree to anything that is contingent upon App Store approval. Agree to deliver legal code, but you don't want to be responsible for Apple's approval whims. That is your client's risk, not yours.
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  • KidCudi10KidCudi10 Posts: 60Registered Users
    edited April 2013
    Wow @BrianSlick! That was really helpful. Thank you so much! I'm glad you've all helped. I also agree that I just want to be done with it.

    Oh I also wanted to ask, if any of you know of sites our resources dealing with ios contract agreement examples. I just want to check a few out and understand them in a a general sense, so that I can draft my own up. Thanks!
  • RudyRudy Ottawa, CanadaPosts: 1,787Registered Users @ @ @ @
    Freelancing is fun but be really careful on who you work with. I would suggest you research potential clients and/or partners. I worked with someone who I figured out only later was the Tanning Booth guy on this forum (Ben Steffens). Guy still owes me almost $8k and I really doubt I'll ever see any of that money :(
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