Why are you asking for $50 to use your chat program and requiring that people post your AdSense code as well? That makes no sense.

Sounds like sense to me. $50 setup fee and continuing AdSense to pay for keeping it?

It sounds ridiculous to me. You pay to not have advertisements. Even if he does set it up for people, $50 is still a lot and should be all that is required to use the chat script. Or maybe make it free with the AdSense code in the page. And if he doesn't make a lot from the ads, then why require that they be included?

I split up the price. I was thinking about around $100, but if it's combined with the additional AdSense, then $50 is OK. This includes some ongoing support and additional avatars, if I come up with any. I will think of adding an additional no-ads pricing for $100 in the future, but right now, I want to test the ads in a trial balloon. If you think $50 with ads is too expensive, well you don't buy it. If you're really interested, I think $50 is cheap – in fact, it is almost not a business plan for me but a way to filter through those who are really interested to use this chat (as I want to limit the users in a first trial ballon).