SAP Business One Product Stakeholder Program


SAP Business One Product Stakeholder

 

A product can be costly not only to build, but also to maintain and support. That is why KB1Pro offers a Product Stakeholder Program. By sharing the cost across a number of stakeholders, much larger and costly projects can be built with a smaller upfront investment.

 

There are many companies with different levels of talent that will gladly quote you a price and build something for you; however, the quality of dependability, response and support before and after the product delivery will vary.

 

But what if your product has a development company with a vested interest or some “Skin in the game” in your project success? Do you think bugs would be fixed faster? New features find their way into a product quicker? Would it elevate the quality and dependability of the product?

 

What is a Stakeholder?

A stakeholder is a company, business partner or an individual that commits to invest funds in a product for a percentage of the profits. The stakeholder can also play a role in driving the features and road map and take part in the scheduled meetings. The level of participation beyond the funding is up to the stakeholder.

 

What are the Benefits?

Stakeholders receive a percentage of each product sale they invested in. See “Calculate Stakeholder’s Profit” for details. Stakeholder receives a discounted rate on qualifying new features and enhancements to the product requested by the stakeholder.

 

As a stakeholder, you receive voting right based on the percentage of ownership for:

  • Features and services for the product.
  • Setting the retail price of product.
  • Sales campaign.
  • Request stakeholders' feature funding participation.

 

Payment Schedule for Product Development

Each product payment schedule will be different based on factors such as project length, resources needed, accelerated delivery date, release versions and negotiation.

 

Example using a stakeholder $20,000 investment:

Stage

Date

Payment

 

Start Project

01/01

$5,000

Initial investment to start project.

Pre-alpha

02/01

$2,500

Pre-alpha: Refers to all activities performed during the project before testing.

Alpha

03/01

$2,500

Alpha: Phase of the release life cycle is the first phase to begin testing.

Beta

04/01

$2,500

Beta: Phase begins when the product is feature complete, but likely contains known or unknown bugs.

Release Candidate

05/01

$2,500

Release Candidate (RC): Is a beta version with potential to be a final product.

Release

06/01

$5,000

Release: All works, product is released to public.

 

Retail and KB1Pro Business Partner Licensing Pricing

Stakeholders set the retail licensing price of the product. KB1Pro Business Partners receive 10% - 15% discount off the retail licensing price. Prices are fixed by the stakeholders. Any additional discount or price change must be approved by the stakeholders.

 

Calculate Stakeholder’s Profit

Profit calculation is simple. Licensing price for product (as defined in “Retail and KB1Pro Business Partner Licensing Pricing”) minus any credit card or processing fees, times stakeholder’s product ownership. Price is for the product only and does not include any additional products or services.

Example Retail: Stakeholder has 25% ownership of the product and the product retail licensing is $10,000, stakeholder receives $2,500.

Example Annual: Stakeholder has 25% ownership of a $10,000 retail priced product, customer’s annual licensing plan would be $2,500 (does not include maintenance fees), stakeholder receives $625.00 annually.

 

Licensing Type Options

Each product will offer three licensing models to meet the needs of the purchasers. The idea is to provide a lower entry point for customers on a smaller budget or a short-term need.

 

  1. Retail licensing grants the right to use the software on one SAP Business One instance with or without annual maintenance fee.
  2. Annual pricing is calculated taking the Retail licensing price divided by 4 years plus a 10% maintenance fee. Example: $20,000 / 4 years = $5,000 + 10% = $5,500
  3. Quarterly licensing grants the right to use the software for three months on one SAP Business One instance. Quarterly pricing is calculated taking the Retail licensing price divided by 4 years divided by 3.7 months plus a 10% maintenance fee. Example: $20,000 / 4 years = $5,000 / 3.7 months = $1,351.35 + 10% = $1,486.49 Quarterly

 

Maintenance Fees

Maintenance fees are used to provide ongoing support and bug fixes of the product. Product upgrades are limited to software versions that fall within an active maintenance fee payment period. Only products with maintenance fees in good standing can request changes, enhancements and receive bug fixes. Annual and quarterly licensing requires and includes the maintenance fees as part of the payment.

 

KB1Pro’s Role and Responsibility

  • Provide maintenance of product.
  • Handle product support requests.
  • Provide product versions for each supported SAP Business One release.
  • Maintain licensing subscription.
  • Gather end-user feature requests.
  • Fix bugs.

 

Q&A:

 

Can I fund a product 100%?

No. KB1Pro for its part has a minimum 20% stakeholder percentage in any product to insure the product is properly maintained and supported. KB1Pro is not allowed to dilute its product ownership below 20% to protect all the stakeholders. See “KB1Pro Role and Responsibility”.

 

I have a product idea, but I am unsure if SAP Business One community is interest. Can you help?

Yes. We will set up a product page with your idea for community voting. You supply all the details and we will provide a rough development quote. From the rough quote, we will set a guess target retail license price to see community interest. For a better gauge of the idea, you can open it to stakeholder interest.

 

I have a product idea. Can you build it?

Yes. If you have a product idea, we are listening. Submit your idea and we will contact you to start turning your idea into reality.

 

I have a product idea, but no funds to become a stakeholder. Can you help?

Yes. We can take your idea to potential stakeholders to see if they will fund it.

 

Can an idea alone make me a stakeholder in the product?

No. A stakeholder takes a financial risk in a product and needs to be compensated for that risk. An idea carries no financial risk. Therefore, KB1Pro cannot offer a stakeholder percentage for an idea alone. What we can offer you is advice. Talk to your target customers who can use the product. Pre-sell them a license or get them to invest in the product.

 

As a stakeholder, can I sell my product ownership to someone else?

Yes. Just like a stock, you can sell some or all of your vested interest in a product.

 

I like a product that is already 100% funded. Can I still become a stakeholder?

Maybe. The stakeholders can vote to dilute ownership percentage for you to become a stakeholder. The stakeholders will weigh your financial investment, the value you bring, ROI and other factors in casting a vote. A 51% vote will be needed for ownership dilution.

 

Can a product that is not 100% funded begin development?

Yes. Development in a product can begin at any time once it is approved by KB1Pro. If a product goes into development before it is 100% funded, KB1Pro will receive compensation in the form of product ownership percentage as the product matures. Just like with a stock, this could cause the value of the remaining percentage to increase in value.

 

As a stakeholder what happens if I miss a development payment?

We understand company or individual funds can sometimes be tight. We hope you understand other stakeholders have invested in the product as well. Any interruption in cash flow can jeopardize a product, schedule or outcome. Avoid loosing your investment and product ownership by reaching out to us. You may find we have a very sympathetic ear.

 

Can any product qualify as a stakeholder product?

Sadly, we have to say no. A product will need to appeal to more than one or two potential customers to increase the reward and lower the risk factors for the stakeholders. KB1Pro takes its fiduciary duty to the stakeholders seriously. We cannot, in good faith, ask for stakeholder investment if the risk is too high.

 

 

 

Contact us about the stakeholder program