Proposals, Contracts and Clients in the web industry

Ofer CohenS.D.O.C. Ltd.OpenSourceMatters Inc.

Who Am I

● Entrepreneur, R&D and project manager at the

start-up nation

● OpenSourceMatters Board Member

● Start with Joomla

● Continue with Drupal

● After and until Today non-CMS (Telecom

oriented)

@oc666

● What types of proposals we get

● How we can maximize revenue

● How to handle project

● Why contract is important

What I will talk today?

Mike Carson

OpenSourceMatters board member

Great thanks and credit!

Time is Money (™)

Rule #1

Time is Money (™)

There is only Rule #1

Proposals

3 Types of proposals

● RFI

● RFQ

● RFP

3 Types of proposals

● Work for enterprise

● Work for SMB

● Work for the smallest client

RFI - Request For Information

● Looking for basic consultancy

● Usually client look and check the market

● What to based their project

● Useful for qualify the vendor

RFQ - Request for quotation

● Short document with basic info

● Check vendor quality & experience

● Check vendor efforts and costs estimation

● Not down to details

● Price focused

RFP - Request for proposal● The most important

● RFI & RFQ can be included

● Vendor need to offer solutions for declared problems

● Use for competitor comparison

● Takes the most time

● Contain deadlines and requirements including Q&A

Pay attention I

● Most requests are not RFP

● If customer request by email - RFI

● Do not respond to any request

● Do not respond if you have less than 50%

chance

● DO NOT WASTE YOUR TIME

Pay attention II

● How the request distributed (mail, website...)

○ References are the greatest

○ Also direct phone

● How was it received (RE: Proposal…)

● Customer have phone included?

● Customer handle questions?

Pay Attention III

● Opportunity to charge for consultant

● SMB - include cover letter

● Thanks and check for feedback anytime

● Most clients do not care of open source

● Clients care about solution!

Tips

● Corporate Corporate Corporate

● Do not wait for the last minute

● Listen to client needs

● Talk less

● You cannot do anything

● Pay attention where you put your price

Revenue

Charge for… make it recur

● Think recurring

● Maintenance & Updates

● Support

● Extensions styling

● Content creation

● Security Services

● Monitoring Services

● Backup services

● Hosting services

● SEO

● SEM

Charge for… make it recur

Project

Project is a project is a project

● Make roadmap

○ Make roadmap from the first proposal

● Deadlines to customer and YOU

● Identify the risks

● Do not start without PRD (at least simple)

● Make a weekly meeting! WEEKLY! FACE2FACE

Project is a project is a project

● Client is the boss

● Talk with the client for any issue

○ TALK!

● Do not assume on behalf the client

Contracts

Contracts

● You have more than 3 clients - get a attorney

○ Immediately!

● Attorney - business bodyguard

● If you do not sign a contract - you’re amateur

● Both parties are accountable - BUSI-NESS

● Do not make business with F&F

Contracts

● Contract for all of your projects (small to big)

● Do everything to *avoid* court

● If client do not want to sign - walk away

● Try to make simple contract

● Make reference to the proposal

Contracts

● Time, consequences for both sides

● Include maintenance technical support & SLA

Contracts - payments

● SHOTEF+?

● Net+?

● 10%-20% deposit - not refundable

● Make a payment roadmap (according to

deliveries)

● Pay like a amateur => Works like a amateur

Contracts - do not forget

● What you are doing when things go wrong

● You can fired a client

Conclusion

Simple equation

● Time is Money + Money is Important

● Time is very important

Thank you.Ofer CohenS.D.O.C. Ltd.OpenSourceMatters Inc.

More info

RFPs, Proposals, and Contracts for Web Developers

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