There is no hard and fast rule. Just sit down and
analyze the customer behaviour and pass records. For
example, did they fulfill their end with other
engineers out there? If it works to all their
advantage than the deal leans to be a BAD idea.
Sometimes it looks rosy out there with this customer
but since you are looking at royalty than you HAVE to
ask this question. Are they serious with marketing
your product? Pass records, are they worth marketing
your product?

Once again no hard rule. KISS, think of worst case
senario and work from there when comes to business.

John

--- Walter Banks <walter@bytecraft.com> wrote:

> Front loading is a bad idea. Until you are done they
> don't have a product after you are done they don't
> need you and your costs are now sales costs
> overhead, "putting then at a competitive
> disadvantage" and "all the profit is going to you"
> doesn't matter
> that you may have man year(s) of your time invested
> and depend on their sales and business ability for
> you to realize any fruits for your effort.  It is a
> way for a company to capitalize through their
> suppliers good will and credit.
> 
> This strains the most sincere businesses
> relationships.
> 
> w..
> 
> 
> Edward Cooper wrote:
> 
> > Dear group
> >
> > I'm doing a consumer audio appliance project, the
> concept, design,
> > and protos will be supplied by me, I'm looking
> around for
> > organisations that are want to brand and take on
> this product, there
> > will be significant costs involved in customising
> the product for
> > their requirements, and probably an exclusivity
> agreement.
> >
> > Now they want to pay me in royalties, with nothing
> up-front, is this
> > a bad idea? I'll find it tough affordng it.
> > What rate should I be asking for considering this
> product will sell
> > in the shops for $250-300 or so?
> > Should I ask for a up front amount, or should I
> bill them for my
> > time? Should I subtract this from the
> > royalties.
> >
> > I think this is a fantastic product and I hope it
> does well, but, I'm
> > not willing to 'give it away'
> >
> > Any ideas would be helpful - I'm a tad clueless :)
> >
> > Cheers all
> > Ed
> > --
> > http://www.piclist.com PIC/SX FAQ & list archive
> > View/change your membership options at
> > http://mailman.mit.edu/mailman/listinfo/piclist
> 
> -- 
> http://www.piclist.com PIC/SX FAQ & list archive
> View/change your membership options at
> http://mailman.mit.edu/mailman/listinfo/piclist
> 


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