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Site Licenses

I was reading through "2007 in review" below (http://discuss.joelonsoftware.com/default.asp?biz.5.577501.20) and came across something that interested me:

Best idea: Site licenses  (Nick Hebb)

I too sell Site licenses and they are great.  But I think conventional wisdom says they're a bad way to segment your market (either Joel or Eric wrote about them saying you're charging your customers with the deepest pockets the least per seat/server/user/etc), which is of course true.

Has anyone successfully pulled back from Site licenses and seen revenue increase?  I wonder if they're attractive to corps just because they know there aren't any compliance issues--one purchase and you know you're covered.  Maybe the Site license therefore needs to be REALLY expensive :)

Would like to hear from others with Site licenses and learn what your experiences are.
Doug
Friday, December 28, 2007
 
 
I applied conventional wisdom, and haven't offered site licenses on my site. However I was approached few times by customers and negotiated site licenses based on their needs. And guess what? These were my biggest orders. No individual order was close to these site licenses.

I think it highly depends on software. If you sell something like Total Commander, it's foolish to cap your profits from a company, when potentially it could be used on all of their computers. If it's niche product, like mine, one can't expect to sell hundreds licenses or more to single company.

In fact site license could be sold at a premium, because you're selling convenience to customer - they don't have administrative work of counting licenses, purchasing few times if they get new employees, or risking illegality.
Dejan Grujic Send private email
Saturday, December 29, 2007
 
 
I'm thinking a site licence could also be a good way to make your regular licence look like a bargain.

But I wonder what the best way to define a "site" is?
MB Send private email
Saturday, December 29, 2007
 
 
Interesting idea, sell the Site license for more than individual licenses.  Hadn't thought of that...

That means you have to have a way to compare them, so how many is a Site?  I currently price my Site license = 8 individual licenses.  I'd _guess_ (don't really know) most Site customers use the equivalent of 20+ licenses, so this is a big savings for them.  Maybe that means I need to price Site = 20 individual?

I define a site as a building or a campus.  My software doesn't enforce such limits (ie no locking down to a subnet or anything like that).  I also have one more level above that called 'Enterprise' which is completely unlimited usage.  It's priced where the Site license apparently ought to be.  Time to increase prices :)
Doug
Saturday, December 29, 2007
 
 
Introducing a site licence for my range of code documentation tools was the best mISV decision I made last year. Go for it!
Dr GUID Send private email
Thursday, January 03, 2008
 
 

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