Client Wants to Own Rights to Program/Code

What is the best thing to do when a client wants to own rights to and possibly resell an application a vendor develops? Is it customary to charge double or triple the normal rate (the rate if the vendor owns the rights). We've heard to charge the client quite a bit more if they want to own the rights to the code and resell the program.

Any thoughts, advice, experience?

I generally include the source files as part of the deliverable for freelance work on smaller projects. Using primarily OOP, good coding practices and external .as files means that the client will generally come back to me with any changes.

I know there are lots of developers out there that never include the code in their deliverables, but, the way I see it, there are lots of flash developers out there that can re-develop your application if they have to, or decompile your swf if it's not obfusicated, so, why not keep your customer happy?

I've also worked on components, large scale applications, cms applications, etc. where I would increase the price by 10-20% (depending on how they will use/resell) if the client wanted exclusive rights to the source code which they could then resell. When doing this, it's important to have them sign an agreement (SLA) that they are responsible for the code that they provide/sell to their customers.

Just be sure that everything is clearly stated in the SLA when you both sign it.

Hope that helps!

If your are going to make more money off of reselling it yourself,,,say no.

You can offer usage rights on a per domain basis without having to offer distribution rights.

Be clear about it when you draw the contract up. Quite a number of template distributors have found themselves in hotwater because they purchased on a single client basis. Then redistributed the source.

What can get you into hot water is when you don't specify and you redistribute the content for something you have given distribution rights away on.

Thanks everyone!