AE file + sources buyout?

[Duder 0]

I've done some lower thirds for a client and they loved it...well now they want to "buy" it out so they can do it themselves, any idea how much I should sell it for? I tried to prolong it as much as I could by asking them to send me the names so I can change the names etc in it so I can give them the files.

[mamurphy 0]

$1500.00?

[Duder 0]

OOh, seems pretty high...it's just one lower third hehehe

 

Thanks though

Edited August 19, 2008 by Havok.Dzn

[mamurphy 0]

yeah..hence the "?"

 

I think it's whatever you feel it's worth based on how much income you will lose from either:

a. not making text changes for them anymore

b. pissing off client

 

If giving it to them for free gets you $10k in additional work from them, then it's priceless.

Edited August 19, 2008 by mamurphy

[Duder 0]

Haha

 

You're right. I don't want to piss them off since they still send me jobs and I don't want to get screwed either, it's a good company. Hmm I think I'll go for around $500. Sounds fair right? :|

I feel sad that I won't be making $$$ with text changes anymore haha

 

As far as the free part, hmm very tempting. I need to think about this for an hour (DOH!)

Edited August 19, 2008 by Havok.Dzn

[chriskelley 0]

Depends how much they are paying you to update it each time and how often they need it updated.

 

Say they pay you $100 to update it, and they need it updated 1 time per week. So assuming the life of the package is 1 year, they would be spending $5,200/year on getting the element updated.

 

Their goal by buying the source from you is to not have to spend that $5200... but the problem is, now that's $5200 that you aren't going to make. So the bottom line is, you've got to find a happy medium that takes those two things in to account, along with the "keep the client happy". Also, if there was never an initial mention of source files in the contract, that should be taken into consideration as well.

 

Based of the $100/update estimate, I would say $1000 would be more than fair to them - that's only 20% of what it would cost them over the course of the year. I would personally vote for 25% of the lifetime of the updates. ($1300 in example case).

 

 

(cost_of_update * (frequency_of_update * life_of_project)) * .25

 

Stand up for yourself and your pricing - business is business. Do your charity work for the kids, not your clients.

Edited August 20, 2008 by chriskelley

[Duder 0]

You're totally right...but I sold it to them for a price, they usually pay me hourly so I don't think I'd go far with changing it anyways as the updates were probably once or twice per 2 months, which isn't much. I'd rather get the money up front plus I was kind of tired making text changes hehe

[anthonyc 0]

i wouldn't sell for cheap. i'd prob try and sell it for 3 times what the original was.

[mamurphy 0]

sounds like you are happy with the decision you made. don't second guess yourself.

 

it's nice to have happy clients.

[Duder 0]

Thanks guys, appreciate it

 

I guess down the road I'll have more experience with these types of "dilemmas".

[Colin@movecraft 0]

It's a good problem to have.