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- Newsgroups: comp.sys.mac.programmer
- Path: sparky!uunet!well!oster
- From: oster@well.sf.ca.us (David Phillip Oster)
- Subject: Re: Advice needed
- Message-ID: <Bz8qp7.Ct5@well.sf.ca.us>
- Sender: news@well.sf.ca.us
- Organization: Whole Earth 'Lectronic Link
- References: <1992Dec13.062936.26772@midway.uchicago.edu>
- Date: Mon, 14 Dec 1992 08:39:07 GMT
- Lines: 53
-
- In article <1992Dec13.062936.26772@midway.uchicago.edu> hd12@midway.uchicago.edu writes:
- >A software company is trying to buy an application I wrote for Macintosh.
- >Since I don't have this kind of experience before, I would appreciate if
- >experienced people on the net can give me some good advice:
-
- >1. Usually what's the percentage the software author can get from the
- >company's profit? Any estimation in terms of dollar? (assuming say, $70
- >each copy.)
- Whatever you can negotiate. IIt has been reported in the trade press that
- the author of the Atari version of Frogger made $0.75Million. It has been
- reported that Randy Wigginton got $1. for each copy of MacWrite given away
- with new macintoshes for the first 1 million macs. (Not bad for 6 months
- work.)
-
- >2. If the company offer fixed percentage of their profit, how am I supposed
- >to make sure they will keep their promise, since I don't have access to
- >their balance sheet?
- Many contracts specify that you get periodic access to their balance sheets,
- say once a year. What does "profit" mean here? Are their own salaries
- included? Do they subcontract production of the boxes to a production
- house that is, say, owned by a parent of the publisher, so the cost of
- production always equals income, (i.e, the "profit" is siphoned out of
- the publisher to the printer, leaving you with a piece of nothing.)?
- It has been reported that movie studios do this trick a lot.
-
- >3. Do I need a lawyer to make it legally binding?
- No, a contract does not _require_ a lawyer to be legally binding, but a
- lawyer is trained to point out spots that another lawyer can use to cause
- you trouble. (This process of "sticking an oar in" itself causes trouble
- and slows the negotiations down.) See the next point.
-
- >4. Any tips? Precautions? Suggestions?
- No Lo press, Parker St., Berkeley CA, publishes a number of good self help
- books on selling software, including selling to a publisher for royalties.
- Get them. Read them.
-
- "Getting to yes" and its sequels are good books on the art of negotiation,
- and there are many good books on how to sell. In the real world, what you
- get is what you get and everything is negotiable, although other parties
- often point to a printed sheet of rules as a means of making you think you
- can't negotiate.
- Remember that you can always hire a trained negotiator, but the better he
- is, the better he will be at negotiating his deal with _you_, so there is
- a point of diminishing returns.
-
- Remember subsidiary rights, like what happens if the publisher wants a
- version on another computer.
-
- Think of it as you hiring a "publisher" to produce, distribute, and
- market your work. How much is that worth?
-
- I've been doing this for a living, but I sure don't know it all.
- Anyone else have advice?
-