We've started beta testing our WordonWiki software. WordonWiki is a Wiki with all the features you'd expect from a wiki, but it lets you create and edit pages with MS Word.
We're getting good initial responses, mainly from companies already doing a lot with MS Office.
However, about half of the questions we got is from other entrepreneurs wishing to integrate in some way our product into theirs. Most of the time, they propose some kind of revenue sharing scheme.
Although this may turn out really well if one or more of these integrators has a lot of success, I do have some questions:
Please post an answer if you got any thoughts on this.
Thanks for your time.
There are really no typical pricing on something like this but there are some guidelines. It really depends on what the two of you can negotiate. In general, the deal structure could look something like:
Licensing you technology is a way to grow the business. The question you have to answer is will it grow your business at the expense of your SaaS business.
The licensing deal will have a bunch of rights that need to be sorted out. These include: exclusivity, market segments, ownership rights, indemnification, etc. On the engineering front, you will probably have to do some work to help your partner integrate your technology into their product. That can suck a lot of bandwidth and could distract from growing your main-line business.