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by daemin 1003 days ago
I think it's easier for people to rationalise a simple cut of each sale rather than a fee for each "unique" installation. In the first case you can calculate that percentage easily in a spreadsheet and account for it in your business. In the second case it's totally unknown how to budget for. Should you assume 1, 2, 5 installs per purchase? How much of your revenue does that account for?

People would rather have a higher fee that is certain than a lower but uncertain fee (of course no fee would be best).

1 comments

It's difficult but you can certainly budget for some truly ridiculous scenarios.

e.g. what happens if you get 20 MILLION installs in a single month?

Answer: You pay $400k with a Pro licence, $200k for Enterprise. Which sucks if you are only bringing in 400k/yr revenue, but with 20M installs this is what you call 'a good problem to have.'