April 7, 2019

Getting a Customer to Fund a Feature

My product will have two target customers:

  1. In-house marketers (or the owner/founder who also wears the marketing hat).
  2. Agencies who focus on branding, advertising and web development.

Agencies have some specific requirements that won't be available in my MVP (currently planned for v3). I have an agency that wants to use my product, and would build it if they pay for the feature. My product, 1brand.co , will be a low-cost subscription that they can bill their client for, and saves 30-40 hours of work per-client. The agency would make back the investment with 1-2 clients.

Any advice from IHers on structuring an agreement like this, and how much to ask for?

#ask-ih

  1. 2

    At my 9 to 5, we have custom work done semi-regularly that ends up being added to the main product. If I had to guess I'd say we've paid for 25% of the product to be created. Unintentionally of course, but we it was worth us paying for at the time and then they just rolled it into the base product 3-4 months later.

    Definitely an option not sure how to do it in your case other than to use the customization model I mentioned.

    1. 1

      My main challenge has been how to position it. Understanding that you've been successful positioning it as a customization is very helpful! also, it's really encouraging to hear how much of your product you've been able to get built this way. Thanks you!