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Moving from a traditional one-time software license & maintenance price model to a subscription fee model

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Answers

Shaun Nestor

Content Marketing Advisor & Agency Consultant

Perhaps I am not understanding your phrase or what you're looking for. A simple formula would be 10 years divided by 120 (to get the fee per month). To keep all things equal, this number is now your monthly subscription fee. Feel free to drop me a note if there is something we can clarify. All the best, -Shaun

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Shaun Nestor

Content Marketing Advisor & Agency Consultant

There are a number of factors that could be attributing to not having much success. Most likely, it is your messaging. Are you framing everything you say around how your product/service solves the problem your ideal client is facing? For example, if they are banging their head against the wall trying to coordinate the logistics of moving the team and equipment from venue to venue, does your product solve that problem for them? Once this messaging is dialed in, I suspect your email response rate will improve, your LinkedIn messages will improve, and your phone call confidence will improve. If you are just "selling" your product, you will have little to no success regardless of who you talk to or the platform on which you contact them. Think about how you would like to be talked to if you were them. A cold, out of the blue message from an unknown person is likely to end up in the spam or trash folder. Instead, focus on how you can deliver value FIRST, then interest them in a long-term solution with your product. I'd be happy to talk to you more in detail about this and give exact steps once I know more about you and your product. Schedule a call and we can get started. All the best, -Shaun

Sevan B.

20+ years in web development, design & business

My response is heavily biased towards web applications, and in-browser bug reporting, though some tools may allow native iOS and Android implementations, as well. The answer depends on on the type of audience that needs to report bugs: private and targeted (developers, employees, etc.) or public and open (all website visitors). Private group typically have some level of vested interest in reporting bugs, and may have higher tolerance for user experience (UX) issues associated with the bug capturing process; public groups, however, need much more streamlined tools and less hurdles in order to encourage bug reporting. FOR PRIVATE GROUPS, the top two tools that we have used, may be a bit too complex for public groups, though they can integrate with more user-friendly tools. Both of them also allow annotations on the screenshots that they take. https://getmarker.io/pricing MARKER starting at about $25 per month is the cheaper of the two. It integrates with some tools such as Trello, Jira, GitHub and Slack, and they have plans for integration with HipChat, which may make it more user-friendly for the public group. https://usersnap.com/pricing USERSNAP starting at about $80 per month is more expensive, but has more features and certainly more integrations out of the box. FOR USE WITH PUBLIC GROUPS, I recommend using a chat service, with built-in screenshot capturing, since those generally seem more user-friendly, and have less complexity in the capturing phase, and have an established use pattern. Of course, some of these make great tools even for more private audience groups, as they can be limited to such groups easily using some basic server-side coding. https://doorbell.io/pricing DOORBELL.IO that has a free plan, supports screenshots. and is one that we have not used, but seems simple, very promising, quite open. It is also highly malleable due to having an API for integrating it into your own widgets, and supporting "web hooks" which may be used to post content from it to any web address. https://www.olark.com/pricing OLARK that also has a free plan, is one that we have used extensively, since it has a co-browsing feature. Once initiated by the chat operator and accepted by the visitor, it provides a live feed into the visitor's browser. NOTE: We have been an Olark partner for a while now, though I am writing without bias, and have NOT included our referral link in this response.

David C

I help you buy, sell, plan, value a business

You're confusing partnerships and corporations. If someone owns 10% of a corporation they are simply a shareholder. Many people create corporations and refer to themselves and other founding shareholders as 'partners.' This may be the source of the confusion. A partnership (general or limited) is a different kind of business legal structure. What you may also be thinking of is a directorship. The investor may or may not want to be a director. This would give them a seat at the table for Board of Directors meetings. In certain states and provinces, directorships lead to some types of personal liabilities. If they want to be a director, you should make sure they get advice on what they may be exposing themselves to. Cheers. David Barnett

Rui Delgado

Entrepreneurship / Online Marketing / E-Commerce

Normally, investors want startups to either exit or go public. They're not exactly interested in making some small return before. They want to make at least 10x the amount they invested, that's why it's worth it for them, even with the risk of losing the capital (and that's what happens to a considerable number of investments they do).

Nick Custenborder

Clarity Expert

Book arbitrage can be a great way to make extra income with Amazon FBA but it's not for everybody. While I don't have specific experience with the program you posted, I looked at the web page to see what they are all about. First, the link opened 10 identical browser tabs which is pretty suspect and feels spammy. Their program is specifically geared to finding cheap books on Amazon that have few or no FBA sellers. You buy the books and relist them as an FBA seller at a higher price then pocket the difference. I don't have any experience with this type of arbitrage so I can't say if it's a profitable method. If you're just starting out, I would go to places like library book sales and Goodwill to find cheap books. There is a big movement right now for college students to find alternative sources for textbooks since they can be extremely expensive. This is an excellent opportunity to find cheap textbooks locally and sell them on Amazon. You make money and the buyer saves money vs. buying from a bookstore. If you're considering buying this program, I would strongly recommend doing more research as there is a wealth of free information out there on book arbitrage.

John F.

Authentically Interested in Digital Marketing

Have you considered utilizing a tool like Webinar Jam? You can pre-record your webinars, turn them into evergreen webinars and set the entire system up to provide specific dates and times for the recording, including a, "Your in luck, our next one starts in 15 minutes!" option or something like it. Three weeks is a long time to wait when we are a society that want instant gratification so offering something like this may be a key for more frequency. Also, if you have a way to monitor the open rate of those five reminders, I'd encourage you to look at that statistic. Even though your current schedule is three weeks out, five reminders seem a little high and I'm thinking you'll see that the two out of the five e-mails don't even get looked at. Other suggestions would be to look closely at your webinar title, the length of the webinar and even the hook you are pitching to encourage people to watch. You want to give off a high perceived value to entice registration and attendance.

D. Mathew

Tax Attorney

Not a canadian lawyer. You should go find a lawyer that knows these things, doesn't mean you can't keep your old one ut if he doesn't know then you need to seek out a specialist that does for that specific matter.

John F.

Authentically Interested in Digital Marketing

I'm reading a book called, "Disciplined Entrepreneurship: 24 Steps to a Successful Startup" written by Bill Aulet. The 24 steps are broken down into six categories: 1: Who is your customer? 2: What can you do for your customer? 3: How does your customer acquire your product? 4: How do you make money off your product? 5: How do you design and build your product? 6: How do you scale your business Your technically asking a good number of questions and I'm thinking this book might be a good starting point for you.

Jason Kanigan

Business Strategist & Conversion Expert

No one can give you a legitimate answer to this question. First, while you have pre-qualified your leads somewhat they are not qualified yet. You and I have no idea whether they still need services like what you offer, or are open to talking about another supplier if they are. Second, not all prospects are a fit on personality. You are not going to get along with everyone, and you do not want everyone as a customer. Not wanting "to lose out on any single" prospect is a dangerous and frankly impossible mindset. Again, some people will be "Clients From Hell" and you do not want them in your business. And as above, you are simply not going to get "everyone" as your customer. So every time you do not, you are going to view that as "failure", which is disempowering and incorrect. Third, the message of your offer and how well or poorly it matches up with that target market will determine who even talks to you. So there are many factors here outside the scope of this answer, such as who writes the copy, how good the pain points are and the level they resonate with the target market, the media/distribution channel you use to reach them, and so on. Now if I was in your shoes, I would qualify further and then test. You can certainly estimate what you want as an outcome. However, you will probably get it wrong at least the first time and probably the first several (most of us do, and anyone telling you otherwise is a liar. The best copywriters in the world only succeed sometimes. The rest of the time their efforts fizzle...and the smart learn from that feedback and adjust.) So say out of these 5000 leads you qualify further for size and another pain point or two in your copy. Maybe you have a great call to action that separates the wheat from the chaff and gets engagement. You estimate--because that is all you can do at this point; you don't have any data to plan with, but as time goes on you'll collect some and be able to plan with increasing accuracy--30% will do the action...take a survey...sign up to watch a video...request a white paper. Now you're down to 1,667 better-qualified prospects. If you get 10% of these to buy, you'd be doing well and that's 167 sales. This kind of estimating immediately shows you two things: 1 > Does this level of funnel flow support your money needs? Is 167 X $sale price$ = enough revenue for the period? 2 > Is this a sufficient activity level? The most common thing people discover on a coaching call with me is that they do not have enough leads going into their funnel to generate the revenue they need out the other end. They're flying by the seat of their pants and hoping. Then you run the test and see what happens. Your feedback tells you how pre-qualified your traffic source really was, and how good or bad your conversion tool is. Compare Planned to Actual results, hone in on where you can get your greatest bang for your buck, and adjust. Let me share a secret with you: it's usually the Traffic source. You can work on Conversion until you're blue in the face, but if Traffic is poor quality, you're only going to develop a trickle of sales no matter what you do. But a moderate change in Traffic quality can have a huge impact on Conversion, no matter how poor your conversion tool may be. I've given you indicators to look at here and concepts to think about. But again, no one can tell you truthfully what kind of response you'll get from your list. You have to estimate, test, and adjust.

Erik Hanley

Senior Analyst Programmer and Call Center Expert

Hi, My name is Erik and I'm a Senior Analyst-Programmer with more than 15 years of experience combined with 6 years of being a Sales Call Center expert. It does depends on specific factors. Some of them are: Cost of application, quality of the game, is it a unique game, is there geographical limitations, how agressive is your ads campaigns, etc. The average cost to users acquisition is variable depending on the product sold. Some applications/games cost almost nothing to market (like Pokemon Go!) and others that has more challenges. If you want to discuss on a call about ways increasing your users (and revenues if it applies) and how to do efficient marketing for your game, don't hesitate to schedule a call with me. Regards, Erik

Larry Cornett

Career and Business advisor, Tech startup founder

Lyft was founded in 2012. They operate in 200+ cities in the U.S. cities. They've raised more than $2B and they're valued at $5.5B. Udacity was founded in 2011 and is valued at over $1B. Vox Media was also founded in 2011 and is also valued at over $1B. Uptake was founded in 2014 and is valued at $1.1B. Oscar was founded in 2013 and is valued at $1.7B.

Humberto Valle

Get Advice On Growing Your Real Estate Business

yes, if you have an LLC you probably already have to file quarterly or as per your state's regulations. Regardless of the frequency even if you are making zero sales, zero expenses, etc. you need to report them as the files are due.

Samuel Korfmacher

Clarity Expert

I have been involved in several multimillion B2B businesses that relied on leads to make sales. The solution is simple, but hard at the same time: you should do this inhouse. Nobody knows your business better than you do. You understand your USPs and the added value that your services can bring to your customers. You basically need to cold-call potential customers but rather than selling your services, ask them what challenges they face in regards to the services you offer. That way, you don't get a "sales call", but have a conversation that the potential customer actually finds interesting. During the conversation you might mention that you can help them address several of the issues they are facing, and can convince them of the added value that you have for them. Selling is easy if you understand that you have to offer a solution to your customers problems rather than just trying to push your product. In order to find contacts you can use the company's website, LinkedIn or Google to find the names of the persons that you could contact. Cold-calling is still the most effective method in getting sales, especially since you only need a couple of new sales a month, so you should really focus on that! If you want to talk in more detail about how to best approach your prospects, conversation tactics etc., don't hesitate to give me a call.

Edmund John

Emerging Markets Entrepreneur & Investor

This is not tax or legal advice. Two things stand out - usually people leave it up to the investors to ask for preference shares and also I see a lot of family members in that cap table. He could pool them into one entity to make the structure less complex IMO. You'll want to make sure typical protections are in place but the structure of the company (anti-dilution protections). Furthermore I didn't hear you mention vesting? You'll want to pay attention to how the sale is done (making sure the assets are acquired by the DE C-Corp but short of that, you have a board seat and over a 3rd of the company. Him being at 35% as opposed to 38% will make little difference unless there is something specific in the shareholders agreement I'm missing. They can probably remove you from the board in shareholders quorum but they cannot take your shares, if your shares are vested.

Shem Szot

Digital Marketing/eCommerce/Sales Advisor.

Consider service providers which work in specific employee sub-segments. For example, create a relationship with service providers servicing the aboriginal segment. This is just an example, but you can work with service providers who hire people with certain disabilities, etc.. Service providers are always looking to staff at entry level positions.

Erik Hanley

Senior Analyst Programmer and Call Center Expert

Hello, My name is Erik and i'm a Call Center Expert and Senior Analyst Programmer with more than 15 years of experience. I've been working in the outbound sales of one of the biggest telecom company in Canada since 6 years. There's many different options you could use depending of your marketing goals. If you need help building a outbound call center, leads generation and sales productivity tracking and improvement, I will be happy to help you. I can help you to build a custom end-to-end solutions, from developement to operations and revenues. With my IT and outbound sales experience, I will be able to help you acheive your sales objectives. I'm hoping to be invited on a call to be part of this amazing project. Regards, Erik

Nick Custenborder

Clarity Expert

Thank you for reaching out with his story, unfortunate and heartbreaking as it is. I would love to help spread the word. Please go to my Clarity profile and send me a message.

Ken Mack

Business Buying Expert (Mergers & Acquisitions)

I would be delighted to speak with you as co founder and angel investor for M&A firm Amieva Mack Capital in London these are exactly the types of opportunities we partner with and I personally would be very interested to speak with you. I can guarantee you that the value I could add to what you have will be unprecedented.

Erik Hanley

Senior Analyst Programmer and Call Center Expert

It will surely depends on where you are located. In Canada, you can ask the 2 employees/contractors to provide you a bill like any company does when they sell services to customers and you can pay them by check. The employee/contractor would need to be registered as a company (incorported or registered on their names, it doesn't matter). Expect to pay sales taxes if you go this way but you won't have any "employee paperwork" to do. Regards, Erik

Jason Kanigan

Business Strategist & Conversion Expert

Find organizations that are already sponsoring or buying gamification for their online marketing, and approach them. If you make gaming apps, look at who is already promoting their products or services through similar means. You have a common issue here which is this: for most prospects, you'll have to make TWO sales. I dislike this situation and avoid it whenever I can. First, you must sell them on the *idea* of your solution ("This game will help you increase customer involvement and retention, and convert into more sales".) Second, you must sell them on the idea of *you* as the solution provider. I look for situations where there is only the one sale to be made: you as the solution provider. If you have to sell them on the original idea, it's too much work. If they're already using these media to reach their target market, they already know its value. You don't have to sell them on that. You just have to get their attention and assure them that you will get them results.

Parker Woodward

Referral Marketing Automation for B2B Sales

You need to make referrals a condition of doing business with you and do it upfront. Also, automate the referral ask. More details on "how to" below. To do this: During your first interactions with a client (NOT after you have delivered or closed the sale, that's a rookie mistake), you can tell them.... "Listen, it's our job to treat you guys so well that you'll not only come back to us over and over again when you need help...it's our job to treat you so well that you'll feel comfortable with us enough to send your friends and colleagues our way when they need our help. Does that make sense?" When they say "Yes" (and they won't say no) you say, "OK great, the way we do that is through referrals. So once you're happy and successful with us, we'll occasionally ask you for a referral. So, you get great work from a team you know and trust and you also get to connect people in your network to a service that you know works well so you look like a rockstar to your network.I want to make sure we can agree to that upfront? This is how we do business here and it holds us accountable to you and makes sure we deliver the absolute best product/service you've ever seen. So once you're happy will you send us referrals?" Once they agree, you now have permission, and a verbal contract that they will send you referrals. Now, treat them like gold with this mentality that you not only want to give them a great finished product, but you want them to refer you. That should drive the work. Once you've delivered...ask for the referral. Don't make the rookie mistake and just say one-time "hey do you know anyone that you could refer us to?" That will rarely work. Instead, ask "Hey, do you remember when we started this project and we both agreed that if we delivered and made you both happy and successful that you would refer us to people in your network?" Pause, shut up and listen, and let them say "yes". Ask them first "So are you happy with what we've delivered?" Pause, shut up and listen, and let them say "yes". If they hesitate at all, they aren't happy and won't refer. Don't hold back and dive-in deep here. Say "I sensed a little hesitation. What's up? What are we missing? I want to help." Figure out what's wrong, fix it, then ask them if they are happy. Then say, "well I've been looking at your connections on LinkedIN and I noticed you are connected to (enter 2 names and company names here). Can youintroduce us so we could have a conversation and get to know them?" The above means you have to do the research. You have to do the work. But the work upfront is much easier than dealing with a cold prospect. Most salespoeple/organizations just don't respect referrals enough to make them a priority. It's their loss and your gain if you follow this simple process. It's work. Just do the work and you might also find you get to know people and enjoy it. These are your customers. Treat them like people. Take care of them and they'll take care of you. Once you make the ask, continue to mine referral leads and ask once a month. Follow-up until they answer. Follow-up until they tell you to stop. Phone is best but email works too. Use it as an opportunity to maintain and develop the relationship. Truly care about your clients and they will never tell you to stop following up. It will be like talking to an old friend and often this process leads to more sales from your past clients as you stay top of mind. Want to automate this process... FULL DISCLOSURE FIRST: I co-founded www.referralriver.com If you want to automate the referral ask, try ReferralRiver. It's free and uses artificial intelligence to automatically research who is in your client's network and make the referral ask at the right time every month. It reduces your work significantly while you just Cc'ed on an email from your existing customers to new referral leads. It's freaking magical. There are other services out there as well like LeadDyno (more of an affiliate program). You should try it all but the truth is that you have to make the agreement upfront and you have to get serious about making referrals a priority. Book a call with me if you want to ask me any questions. Happy to help.

Jason Kanigan

Business Strategist & Conversion Expert

Consult a tax accountant; I am not an accountant or an attorney and this is not "professional advice." I do have to ask a question about the wording here. Are these partners as in shareholders of the business, or are they working for it? That will make a difference in how you go about paying them. If you are telling them what to do and when to do it, they are employees and you cannot 1099 them. 1099 means you say "here's what I need done", but when they do it and how they do it is up to them. So if you require them to be on site from 9-5 for example, they're employees. If they are owners alongside you, that's different. However you pay them must follow the matching principle of accounting. Their revenue from the camp has to match how they're involved. If they're part owners, they get a dividend check and they must report that as corporate income. If they're working for the camp, my guess is that they are employees and you must go through the hassle of reporting and paying them as such.

Carrie

Proven Founder, Digital & Mobile Marketing Expert

Yes, if you are going to have employees in CA.

John Meese

Always Be Teaching

Did you get denied? Or have you not been approved *yet*? I'm not sure how Twitter is working through the application process, but from what I can tell it is roughly in order based on follower account with a big focus on who they are and how much their name or personal brand are attached to why people follow them.

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