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     If you have a program which you would like to turn into a commercial
     product, and if your interest in commercializing the program is strong
     enough to motivate you to do the dog work required to achieve that
     commercialization, then we recommend that you contact us. We are not
     interested in hearing from those with only a causual interest. What we
     want is partners who will help us build THHG into a solid co-op of
     software developers for the purpose of sharing overhead and fixed costs
     and allowing us all to participate in larger ads than any of us would be
     able to afford alone. 


     The Short Version:
     ==================

     The Hobbit House Group (THHG) is a co-operative venture among software
     developers.

     We get substantial volumn discounts on software duplication services,
     disks, labels, sleeves, printing and duplication services, mailing
     costs, and advertising.

     As a group, we have greater advertising power than any of us would have
     alone, and a greater chance to obtain name-brand recognition

     I, as co-ordinator of the group, along with other members, will help you
     bring your product to a marketable state.

     The group offers three plans whereby we will market and distribute your
     product. These range from TYPE 1, where THHG pays all of the advertising
     and production costs for the commercialization of your product to TYPE
     3, in which you pay all of those costs. In any case, THHG performs
     production, and distribution of the product. 

     In return for these services, the group gets a percentage of the profit
     from your product. If you have no profit, we get nothing.

     If you're interested, all the details are enclosed. Read on.

     Paul Hinds


     ========================================================================


     The long version:
     -----------------

     Please note that this is a somewhat hurried first cut description of
     THHG (which is just starting up). I've concentrated on getting in all of
     the relevant information, but without as much concern as I would normally
     have to make the presentation smooth and unrepetitive.


     What is The Hobbit House Group ("THHG")?
     ---------------------------------------- 

     The Hobbit House Group is a co-operative venture among software
     developers whose products are written in Borland or Miscosoft C/C++
     and/or 80x86 assembly language (MASM or TASM). You can see our first ad
     in the April, 1993 issue of the C Users Journal, page 115. 

     Why C/C++ and 80x86 ASM under Borland/Microsoft? Simple reason; I prefer
     these for my own development and I feel comfortable supporting products
     written in them. This is necessary because the co-operative venture
     which I am putting together as THHG will have to support the products
     which we sell, even if the original developer gets run over by a trolly
     car. In the long run, we might grow to the point where we can support
     products written in other languages, but for now we're sticking with
     C/C++ and 80x86 assembly language and only those from Borland and
     Microsoft. 

     The concept is simple. Many of us have an idea for a product, and
     perhaps even the developed software that can be turned into a commercial
     product. What many do not have is the time and/or money and/or
     inclination to do the dog work which is required to commercialize a
     product. That's where THHG comes in. 

     There are two major sets of "dog work" required to commercialize a
     product: 

     1) The stabilization and documentation of the software such that it is
	supportable in the long run and doesn't cause product returns in the
	short run. It is useless to sell a product for any amount of money if
	a significant portion of the user population is going to return it in
	disgust after discovering the first three major errors it contains.
	Alpha and Beta testing are absolute necessities. Documentation must be
	far more than casual. And on it goes.

     2) All of the issues other than the software development. Some of the
	required jobs are:

        o find a place to do the disk duplication with good reliability
          and reasonable price.

        o design, and contract out for the production of, a physically
          attractive and professional looking product and perhaps demo
          disk as well --- a custom label, perhaps a custom disk sleeve,
          a professional-looking mailer, etc.

        o decide where to advertise, write the ad copy, come up with the
          bucks to do the ad, contact the magazine, negotiate ad rates,
          etc.

        o write new product announcements and distribute them to various
          magazines

        o find the time to do the dog-work of stuffing mailers, answering
          ad inquiries, etc.

        o research licenses for compaction programs and choose the one to
          use with your product. Contact and negotiate with the vendor.

        o decide on pricing strategies for multiple/LAN installations

     It goes on from there.

     THHG is a co-operative venture by software developers to take advantage
     of volumn discounts on all direct costs, including disks, software
     duplication services, customized lables and sleeves, mailers, postage
     costs, advertising, etc. 

     A  major advantage of THHG will be that together, we can afford
     larger-sized and more frequent ads that are more likely to attract
     attention. Many readers barely glance at the little ads in the back of
     the magazines, which is all most of us could afford if we go it alone.
     With the total advertising power of the group, we have more chance to
     build the name recognition that is difficult for an individual to
     acquire. 

     Another advantage of THHG is that we will be able to market small
     products which would not otherwise be financially viable. If you have a
     minor utility that you think might realistically sell for $10, what can
     you do with it? Unless you really think you'll sell an awful lot of
     them, you don't dare spend the money to commercialize and advertise it,
     since that would cost too much and you'd almost certainly end up being
     out-of-pocket on the deal. With THHG, you can just add it to the product
     list. It won't be advertised, but the list goes out to everyone who
     contacts the group for any product. If it sells, great, if it doesn't
     all we are out is the relatively small cost of procucing a few copies. 

     I am a firm believer in TANSTAAFL. For those of you who aren't Science
     Fiction fans, TANSTAAFL is a layman's version of the Second Law of
     Thermodynamics, to wit: 

        TANSTAAFL => There Ain't No Such Thing As A Free Lunch.
                     -     -     -  -    -     -  - -    -

     That is true of THHG as well as everything else in life. I'm not
     attempting to put this venture together for my health or as a hobby. I
     expect it to take me a great deal of time and energy and I fully expect
     to be paid for my efforts. It is not my intent to ask you for money.
     This is not the software equivalent of "vanity press" book publishing. I
     won't ask you for any money up front, nor will I pay you any money up
     front. What I will ask for is a share of your profits, once there ARE
     any profits. If there are no profits, I get nothing. 

     This will greatly annoy some people. If the thought of anyone else
     making money off of your efforts annoys you, I ask you to consider that
     many people (writers, actors, etc.) employ others to market their
     products/efforts, and that payment is traditionally based on results
     (I.E. a percentage of the gross). If it still annoys you, then THHG is
     not for you. 

     You should also consider that THHG may be the only realistic way you CAN
     market your product since you may not be willing to put in the time,
     energy, and money that it takes to do it on your own. It's hard enough
     just making software commercially viable; the other half of the job,
     advertising, producing, distributing, etc., is more than most of us want
     to take on. 

     This venture is structured so that we can both get what we want. I am
     making an assumption here, of course, and it is that what we both want
     is to see our products go out into the world and to make money doing it. 

     There are three different product categories which determine how your
     product is dealt with. All of the membership
     duties/requirements/advantages, are the same, regardless of what
     category your product falls under. The designation of product category
     will be one which we mutually agree on. If you have more than one
     product, they can be in different categories. 

     Under no circumstances do you pay any money to me out of your pocket.
     Depending on the plan we agree on for your product, however, you may
     have out-of-pocket expenses for the commercialization of your product.
     THHG does not see a penny until your product begins to turn a profit. 

     The three product categories are:

     TYPE 1 --- THHG Pays It All
     ---------------------------

     You pay no direct costs (THHG pays for production, advertising, etc.).
     You have zero out-of-pocket expenses, now and forever. 

     THHG puts out all of the up-front risk on this type of membership and
     consequently takes a proportionately large share of any resulting
     profits, starting at a 50-50 split, pretty quickly dropping off to a
     33-67 split (you get the 67), and eventually trailing off to a 15-85
     split. 

     Products which, for whatever reason, do not strike me as having adequate
     commercial potential will not be accepted for this category. 

     Initially, we are concentrating on small and medium scale products which
     can be effectively advertised in The C User's Journal. If your product
     is such that it would require, for example, a full page ad in PC
     Magazine, we are interested but do not yet have the capital to deal with
     the required ad budget. Such a product could not be a TYPE 1 product,
     but could be TYPE 2 or TYPE 3. 


     TYPE 2 --- Middle of the Road
     -----------------------------

     You pay all ad costs for ads which are specific to your product. THHG
     pays up-front production costs and all costs for joint THHG ads, of
     which your product is only a part. 

     We will have to agree on the ad budget, and I have to be convinced that
     your product is acceptable for this level of membership. 

     Depending on the product, your initial ad costs could be as low as $500.
     After that, if profits warrant it, you might want to spend more on
     advertising. THHG will continue to pay all production costs. 

     The profit split on this category starts off at 40-60, (you get 60),
     drops rapidly to 25-75 and trails off to 15-85 on large profits. 


     TYPE 3 --- You Pay It All
     -------------------------

     You pay ALL production costs and all costs of ads which are specific to
     your product. Your payment can be direct to the distributer of the
     services provided or via THHG, but in no case do you pay anything other
     than the exact cost of the services rendered for your product. You get
     the advantage of volumn discounts on all direct costs and ads, and you

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