Royalties - Software Royalties

Software Royalties

There is simply too much computer software to consider the royalties applicable to each. The following is a guide to royalty rates:

*Computer Software: 10.5% (average), 6.8% (median)

*Internet: 11.7% (average), 7.5% (median)

For the development of customer-specific software one will have to consider:

* Total software development cost

* Break-even cost (if the software can be sold to many agencies)

* Ownership of code (if the client's, he bears the development cost)

* Life of the software (usually short or requiring maintenance)

* Risk in development (high, commanding A high price)