
Ask HN: Just got asked for a quote. What to do? - CalRobert
I&#x27;ve had a few chats with a university that needs a custom web app for quizzing people. For a few reasons, I expect it to take 3-6 months to get done as a side project, with most of that being requirements gathering.<p>I don&#x27;t actually have a business entity at this point, and I&#x27;m not entirely sure what to do. I&#x27;ve never worked as a consultant before. I have an idea that I would outline a timeline consisting of 5 or so milestones where I deliver, they pay 1&#x2F;5 of the total fee, and we move on. Is this a normal approach? Do folks here demand any sort of deposit or payment before writing the first line of code? I imagine I&#x27;ll need to spin up a business too.<p>They&#x27;ve asked what my expectations are with regard to IP - I may simply offer to set up the app and run it for them while maintaining ownership, but then, that pretty much means they paid for me to generate my own IP.<p>Even a previous discussion link would be most appreciated.
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fiatpandas
IP: you can say you'd retain copyright ownership but grant them an non-
exclusive perpetual license to use an instance of the software.

Definitely define support terms, e.g. I usually include 6 weeks of critical
bug fixing in the price, with an hourly rate agreed upon for any out-of-scope
work (unless it's a huge change, which would probably warrant a new proposal).
Hourly rate for any other minor work (even bugs) 6 weeks out.

Payment: in my freelance web work, I've always asked for 50% up front fee,
with the final 50% due after the work is complete and up to spec (but before
launching to production). I've found these are usually acceptable terms, esp.
for work under 25k~. Sometimes I can't get away final 50% paid before
launching to the public, but I'll remain firm with it if I don't completely
trust them.

Milestones are great. But 5 payments seems like a bit much, esp. with an
institutional client like a university, which tend to be a pain to get paid
by. You want as little bureaucratic busywork as possible, which means you make
more per hour for the same flat fee.

~~~
CalRobert
Thanks - that was really helpful.

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taprun
Pick a revenue model [0]

Pick a pricing method [1]

Pick a licensing strategy [2]

[0] [https://taprun.com/revenue/](https://taprun.com/revenue/)

[1] [https://taprun.com/methods/](https://taprun.com/methods/)

[2] [https://taprun.com/licenses/](https://taprun.com/licenses/)

------
codegeek
Few tips:

1\. Create a contract traditionally called "Statement of Work" (SOW). Google
it and you will get plenty of samples. If absolutely needed, get a lawyer to
review if the budget is worth it.

2\. Ask for upfront deposit. I ask for 50% but it could depend on your
negotiation skills. If a client is not willing to put at least something
upfront, then they are not a good client. Most likely, they will nickel and
dime you.

3\. Discuss the IP upfront. If client wants full exclusive ownership, your
price should cover that. If you want to retain ownership but license it out to
client, make that clear and reflect in your price.

4\. Write the "scope" of the project as clear as possible. The scope defines
the "what". The "hows" can vary a bit but try to ensure the client is clear on
"what" is being delivered. Google "scope creep" if you are not sure about
this.

5\. Setup milestones by time and scope items. For each milestone, make sure
the client pays. This will ensure that the client is serious and stays on
track. If there is no milestone based payment, client could go missing. In
worst cases, they may just drop the whole thing. Better to know sooner than
later.

6\. Be very clear with the client. If an answer is "No", then don't sugarcoat
it. Say No. Saying No upfront is 100 times better than saying No later when
client expectations are different.

Most importantly, build trust with client but make sure they respect your time
and skills.

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becauaeqgen
I strongly recommend making your estimate fill the timeframe you specified,
break that down into what salary you would want and then bill hourly, every
two weeks.

Do not base it on milestones unless it is something you have built before and
"could do it in your sleep" because otherwise you are going to trip on a bunch
of "gotchas" and at some point either you or the client are going to be
frustrated and/or forced to renegotiate.

------
celticninja
It's their IP if they are paying for it. If you develop it without payment
it's your IP.

~~~
saluki
Actually if you spell it out in your contract or master services agreement you
can retain rights to the majority of the project for re-use. This is pretty
common, most projects are modular and you can save them and future clients
cost by re-using similar portions of code.

If they don't like this, then quote them a larger price if they don't want you
to re-use their code in the future. Be careful not to give up your rights to
create quiz apps for future clients or a possible future SaaS.

You'll want too include something like this, so they are clear you have the
rights to re-use parts of their project on future projects. I would include
wording that covers the quiz format/process in Type B as you might want to
roll your own quiz SaaS app someday.

I am not an attorney, so have your's review prior to using.

4.4.2 "Type A Deliverables" shall mean Deliverables that are specific to
Client's Business, including, but not limited to logos, images, unique
business logic related source code and documentation associated therewith.
Examples of Type A Deliverables include custom graphics and unique business
logic code.

4.4.3 "Type B Deliverables" shall mean Deliverables that are not specific to
Client's Business, including, but not limited to front end and back end code,
framework modifications, tools, methodologies, plug-in and third party source
code and documentation associated therewith. Examples of Type B Deliverables
might include HTML, CSS, javascript, jQuery, Ruby/PHP Code, Objects, UI
Features, App Features, CRUD interaction with objects, sorting, filtering
data, search, manipulating data, patches and enhancements to open source
frameworks and libraries, open source plug-ins available from third parties,
contributions to which are generally-accepted practice in the open-source
world. Along with standard features and functionality that are common across
websites and web applications.

4.5 Ownership

Except as otherwise set forth herein, the entire right, title and interest in
to Type A Deliverables, are the exclusive property of the Client. Under no
circumstances may Consultant use the Type A Deliverables, or any component
part thereof, for its own benefit or for the benefit of any third-party.
Consultant grants the client a perpetual right to use and modify Type B
Deliverables. The consultant reserves the right to use, reuse, modify the Type
B Deliverables on past, present and future projects.

