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An OEM is what is referred to as an Original
Equipment Manufacturer. An OEM will
often purchase a product and rename the product,
selling it under a new label as their own.
Unique opportunities exist for software developers
interested in OEM deals. Software developers can
often negotiate with hardware vendors to bundle
their software under an OEM label.
Typically OEM deals are based on very large quantities,
but developers do not make much money on each
copy that they sell. Through OEM deals developers
are able to penetrate markets that might have
been previously difficult to reach.
A key ingredient to an OEM deal is the quantity
involved. It is always a good idea to use a sliding
scale for pricing and establish minimum prices
based on quantities.
Example OEM Deal:
Backup Tape Drives bundled with OEM Back up Software
Related Articles:
What are Resellers?
What are Software
Publishers?
What are VARs?
What are Affiliates?
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Developer
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What is an OEM