Background: We are developing a cloud-based application intended for consumers, but at the same time would be useful for enterprise. Thus, we have begun talking with enterprises to hear thoughts on the application. In doing this process, we have been pleasantly surprised to hear interest in beta testing the application. In exchange for beta testing we offered the application for free (or little cost). A particular enterprise has agreed in principle, but now we must work out the logistics of the agreement. As this is our first potential customer, we want to the beta testing agreement to go as smoothly as possible.

How has everyone handled beta testing agreements with enterprises in the past? Do you charge a small amount for the application or give it away for free? Do you give lifetime licenses or do they expire? Any successful or failed models?