I had a similar situation in my startup. Take 50% and continue working on it nights and weekends. Or sell yourcode for $20k or 5% of the company for building the first product.
Too many people here take her request as a personal offense. Its not. It's a business negotiation and she is "anchoring". Now you need to counter offer.
Goodluck.
Be prepared to walk away with the product and bury it.
It seems like they're testing out new pricing models - doubt this will stick. BUT I applaud the use of testing in these situations! Pricing is sooo tuff.
Too many people here take her request as a personal offense. Its not. It's a business negotiation and she is "anchoring". Now you need to counter offer.
Goodluck.
Be prepared to walk away with the product and bury it.