Business model for Open Source - advice wanted

[Grant Edwards]

In article <246a4e07.0307100613.fc2fc50 at posting.google.com>, Frank Millman wrote:

> However, any support of the software from a business or accounting
> perspective will be available to registered users only. For a monthly
> support fee (I am thinking of a range of $50-100 per month - let me
> know if it is too high or too low)

What do competing products charge for support?

> Here are a couple of pitfalls that I can see, and my possible
> solutions to them. Firstly, a user will be able to terminate his
> support contract at any time, and the software will continue to
> function. Therefore some may be tempted to stop paying until they have
> a problem, then pay for a month, get an answer, and stop again. My
> thinking is that 3 months must be paid up front to activate a support
> contract.

I'd suggest doing support a year at a time.  Most of the
commercial SW for which I've bought support did it that way. If
I were a customer, I sure wouldn't want to have to go through
the hassle of getting you a check cut every month.  One place I
work calcualted that the cost of processing a purchase order or
cutting a reimbursement check was $50-$100.

> These are my thoughts so far. Any comments - suggestions,
> warnings, personal experiences - will be much appreciated.

I don't know much about accounting systems, but if they're
anything like manufacturing/inventory systems, almost every
installation is heavily customized.  Charging for doing the
customization is probably a good source of revenue.

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