Article Abstract:
Reusable media and software objects create unique new economic opportunities for digital-media entrepreneurs by generating 'digital assets' to reduce production time and increase overall productivity and revenue. A developer can charge clients license fees for digital assets and the value derived from them in order to boost profits. Assets also increase the overall value of a business if they are clearly documented for potential lenders, venture capital partners and merger or acquisition candidates. There are several side benefits to digital assets, such as diversified revenue streams, easier scaling of business processes, accountability to results and contractually enforced penalties that help retain clients as customers. A digital media firm should model itself as an asset foundry and transform work-for-hire projects into assets. Technologies such as C and C++ are economically dead because they lock users into assets of lower economic value.
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Article Abstract:
Business designs that are universally suitable for small digital-media establishments are based on the premise that new-media entrepreneurs are contingent workers or independent contractors. In order for these entrepreneurs to deviate from the customary practice of contractors to set project rates on an hourly basis, they must define themselves as a small business of one employee. Next, they must establish their respective rates based on the cost of their labor and time while targeting profits of 15% to 25%. These small businesses should also determine what the customer is willing to pay when establishing prices, rather than how much the project will cost them. Each project must be followed by a meticulous scrutinization of related activities to provide details of the time and money involved.
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Article Abstract:
Developers need to recognize the importance of reusing and repackaging existing digital media assets, particularly to prospective clients. This concept views an interface as a brand that provides viewers with a memorable association that can be identified with its creators. The content then becomes merely content conveyed by the brand. One developer obtained a lucrative kiosk proposal by using reusable assets and meeting a customer's business needs. The developer underbid competitors by licensing its existing kiosk technology to the customer. The deal hinged on the client allowing the developer to generate outside income by selling the advertising placements on the kiosks. While a portion of the advertising sales would be given to the client, the majority would be kept in-house.
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