[john_w_t_b]

This is a common arrangement for consultants in the ERP sector. It's a nice way to start a software business. Your customers provide you with seed capital, user requirements and a reference site. I've seen a couple of people start multi-million dollar businesses with this approach.

[ams6110]

It can work particularly well for public sector customers, because they generally are not worried about "trade secrets" or other IP being later sold to a competitor.