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by escapecharacter
203 days ago
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I've had trouble finding case studies of B2B development deals. My past experience includes lots of milestone-based development as a contracted solo dev. Now, I'm bootstrapping (in stealth) a B2B service with 3 employees. The basic service exists. To continue funding, I can get VC investment, or I can get business customers to pay up-front development costs, to customize to their use case. Let's say for a normal customer, the service costs $X / month. I want to write a deal with a business customer where they pay $Y up front, for us to build the service for their use case. Maybe in return, we discount their usage cost:
* their cost is $ 0.5 * X per month for Y/X months, OR
* their cost is $ 0.5 * X per month for (1.5 * Y/X) months (like a loan with interest), OR
* their cost is $ 0.7 * X in perpetuity (permanent discount), OR
* no discount at all, and we the cost to the customer as early access. |
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Consider how much you want/need to be charging customers in 3-5 years time and work backwards from there. Be open with early customers on these prices. Offer discounts (sometimes even permanent) against these target prices for early customers/design partners.