One payment or recurring income?

Typically the buyer prices an agreed batch of records once and pays after the handover, often three to six weeks later, occasionally more. Lump sums are easy to assess: one figure set against a few hours of effort.

Follow-on deals. micro1 ads have hinted that deals can recur. Most likely that means licensing fresh records as they accumulate, or another batch from a different system. Ask exactly what would earn you a second payment.

Revenue share. Troveo pays a share of revenue but keeps the percentage private. Over time that can beat a lump sum or fall short, and you rely on the buyer's sales and its reports.

• Get the revenue-share buyer to estimate year-one earnings and show the working
• Secure the right to audit their revenue reports
• Check whether the lump-sum deal is exclusive, because that caps what you can earn later

In our opinion, small firms are usually better off with a lump sum: it is simpler to evaluate and simpler to explain to a buyer of the business during due diligence.