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To: gypsy who wrote (172)6/2/1998 5:39:00 PM
From: Eric Weiner  Read Replies (2) | Respond to of 756
 
Hi all,

I emailed Brian Leeners today to ask him if THW generates any revenue from these educational deals or does the company just give the software away.

Here is the reply he sent me:

A site license allows the buyer to purchase the software at a reduced price. The number of units shipped depends on the Buyer. In the Carlton deal we shipped a single CD ROM which they install in there various labs - we get paid by the seat (installed machine). Generally, a site license will entail one unit of the software per 25 to 30 seats (average class size). These site licenses are revenue deals. We do not give away our software - we will bundle our shareware product with other products and sometimes people pay for shareware and sometimes they do not - it is an ethical issue as they are legally obliged to pay.

The reason we give away our shareware product is to generate mindshare (which generates revenue over the long-term in the software business) and because there is a significant feature boost when you move up to WebPainter 2.0. With the release of WebPainter 3 the feature set takes another massive increase and the price stays at around $69.95 US retail. This is how you become the standard within a segment of the market.

Thanks,
Eric