1. Since your product can normally be delivered as an in-house or out-source solution, give your prospect (bank) a full in-house license with a
fixed term (e.g. 5 years), yet try and gain an out-source agreement to have your company do their information processing, while retaining the
monthly processing fees on the five-year agreement.
2. Even if the bank brings the whole system in-house, establish an annual maintenance contract of 20% (for example) of the license fee, subject
to change on the asset size of the bank on an annual review of their financial statements.
Banking System