Questions

We are in talks with an enterprise to start a pilot project for our software. Is it a norm for companies to pay for a pilot project? Or should it be free to get a foot in the door and learn more about their problems and processes

Yes, charge.

The concept is called a Monkey's Paw, which comes from big ships coming into port. They need to be tied up to a pier, but the cable used is too thick for dockhands to handle. So they connect a thinner, lighter rope to the cable, and throw that down to the dockhand...who can then reel in the big cable as well.

When you do a pilot project, or a consultation, or put a plan together, charge for it with the Monkey's Paw approach. "I'll do this for $X,XXX." Cover your costs and pay yourself enough that you're happy regardless of whether you get the full project or not. Then: "Once you have this [pilot project / plan], it's yours. You can do whatever you want with it. Have me implement it. Have someone else carry it out. Leave it on the shelf. Throw it away. You own it. But if you want me to implement it, I'll deduct the initial investment of $X,XXX from the total. Sound fair?"

This way, your client sees value and not just 'Cost Plus'.


Answered 9 years ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2024 Startups.com LLC. All rights reserved.