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As traditional desktop and notebook PC sales slow, hardware manufacturers are not the only ones feeling the impact of a shrinking market.
Taking the place of traditional software products so common during the Windows era are two relatively new categories of offerings: mobile apps and cloud-based software-as-a-service (SaaS) applications.
In this article, we're going to take a look at the traditional software application market and scope out which of the newer markets might have a better fit for the traditional PC independent software developer.
That got me thinking: What are valid business models for today's software product companies? The problem with the app market is that prices have been pushed down so much that you can buy an app for less than you'd pay for a can of soda. Today, with the exception of console video games, the packaged software market -- where you put software in a box and physically ship it -- is obsolete to the point of ridiculousness. These days, of course, the desktop PC market is cratering, and with it are going the revenues of PC software developers.
Enterprise software represents the glue that ties together teams and business processes, especially in global organizations. In addition, the growth of iOS and Android cut the bottom out of the price points for packaged software.
The 30-40 percent of list that we earned had to be used for per-unit production costs (disks, printing, duplication, packaging, shipping) as well as contribute to the overall company administrative and software development expenses.
But the problem with the app market is that prices have been pushed down so much that you can buy an app for less than you'd pay for a can of soda. For the moment, let's ignore the relative value-of-the-dollar-over-time issue and just look at what it costs to produce software, comparing packaged products to mobile apps. Packaged products had all the production and shipping cost involved in producing physical goods.
The idea of freemium software-as-a-service is that you get to use a product for free, but if you want to take advantage of additional features, you have to purchase the service. As a result, while app vendors often provide some level of online customer support in the form of FAQs or forums, there's just no money (as in no way to afford to pay someone) in providing quality customer support in the app business. While support was always an uncomfortable expense in the packaged software business, it was at least something that sales of the goods could generally support. Today, getting visibility in the app store is extremely hard, and so is getting visibility online. On the other hand, let me also point out that most retailers didn't like to pay their bills. Now that you've got an overview of the market differences, lets enumerate the characteristics of old-style packaged products vs. Both business models were as much art as science, but while apps reduce the barrier of entry considerably, they reduce the barrier of entry considerably (to the point of almost zero), wildly increasing the competitive noise. All of this brings us to the software-as-a-service (SaaS) model of software product marketing. The idea of freemium software-as-a-service is that you get to use a product for free, but if you want to take advantage of additional features, you have to purchase the service. Next, we'll take an in-depth look at the benefits of the freemium business model. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. We have been developing MLM Websites and software from last 7 years and we have successfully completed more than 200 MLM Projects. Clipping is a handy way to collect and organize the most important slides from a presentation. From the time you put your virtual hands on a book that you want to learn more about, they suggest a two-book bundle, they tell you the names of other books that previous buyers have purchased when they bought the book that you've selected, they name other titles in the same category, and they tell you that your book qualifies for shipping discounts if you purchase additional books. You can encourage people to upgrade from a single-user license to a family license, entitling them to use your software on all of their home computers plus one computer at work. If you're offering home entertainment software, you can suggest that they give a gift to a friend.
Offering gift certificates, or shipping a physical CDROM, with or without a gift card, can generate more sales. If you're selling business or education software, you should make a major effort to sell multi-user and site licenses at discounted prices. If you're offering two products, you can still avoid the dreaded shopping cart, while selling bundles and other combinations.
At its simplest, you can offer application-a, application-b, or both (probably at a discount for the two-program bundle).
If you offer three or more applications, you need to consider offering users a shopping cart. The upside of a shopping cart is that it makes it easy for customers to buy multiple products. If you're selling, say, a collection of games, at similar prices, you can avoid using a shopping cart by offering 2-game packs and 3-game packs.


It's bad software marketing to jeopardize your original sale by confusing or offending your prospects with your attempt to upsell them.
If you're upselling at the time that they add an application to their shopping cart, be clear. If you're upselling after they've filled their shopping cart, and after they've clicked on the "check out and pay" button, then be gentle. If you're cross-selling them after the sale, on your "thank you for your order page", your software marketing can be a little more pushy. If you're after-selling your customers, using the email that you send them - the email with the registration code or the URL where they can download the full version of your applications - you can offer them discounts on future purchases, or recommend affiliates' software.
It's much, much easier to sell additional software to a satisfied customer than to find new customers and convince them to buy.
You wouldn't assign your source coding tasks to a marketing guy who did programming as a side business.
Don't trust your press release distribution to a developer who maintains an editor list as a side business. Al Harberg's Software Marketing Newsletter provides insights into powerful sales writing techniques, selling site licenses, avoiding lost opportunity costs, and using press releases to increase your income. The easiest way to get started selling software online is to find a download service provider to do all the difficult work for you.
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We have an collection of Ecommerce Solutions For Online Software Sales Selling Software in various styles. Traditional PC software vendors, those who sold what were once installable software products, are seeing their markets evaporate. Back when I ran a software company, we sold packaged software products in retail shops; we duplicated disks, printed manuals, and shipped boxes all over the world.
Back in the eighties and nineties, when I ran a software publishing business, we sold packaged products for prices ranging between $49 (for an icon editor) and $395 (for an expert system development environment). See how enterprise software is simplifying, webifying, mobilizing, and getting a lot more social. Granted, the app store model also cut out a lot of the middleman and production costs as well. Back when I sold software through retail outlets, we had to discount our software 60-70 percent for sale to distributors. These were non-trivial expenses, especially in terms of cost-of-goods-sold and upfront production costs prior to shipping the first unit.
As a result, software vendors keep a lot higher percentage of the take than they did in the old retail software days. For the app software business to be profitable, then, you need to sell as many apps as the soda companies sell cans of soda. You can argue we have better development platforms today, or you can argue we have more development expenses because of the need to pay to produce high-quality media, but for our purposes, both models had software development expense.
All the SEO in the world won't make your app discoverable if you're not picked as a showcase by Google or Apple. One thing you can say for the Apple of today and Google is that they regularly pay out for app store sales. It could take 90 days to six months to get paid, and some retailers just didn't pay at all. I'm not going to get into the big-scale variant of this market, like Salesforce or Office 365. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center. We have worked with national and international network marketing companies and provided satisfied results to our clients. When you close the transaction, they offer you a discount to ship additional gift-copies of your books to your friends. Used improperly, these techniques can annoy prospects, and drive them to visit your competitors' sites. If you're offering additional software on your product page, make sure your customers are crystal clear about what they're buying. Acknowledge that they've added a particular program to their cart, and ask them if, in addition, they'd like to add another specific program, at a stated, discounted price. They've already bought your software, so there's no risk of them abandoning their shopping cart.


Once you have the product you want to sell, it’s only a matter of getting it out to the world through your own site or other launching sites. Blog and social media sites can be your home site, or even better, can be linked with your home website to give you more exposure and traffic for your software.
These providers take the buying process out of your hands and leave you to think only about marketing and creating more software to sell. Since you will have a delivery system handling the buying end, use your time to work on SEO marketing for your sites to drive traffic and interest to your product.
Here is some inspiring pictures about Ecommerce Solutions For Online Software Sales Selling Software . But, for decades now, there has been a vibrant market of PC software vendors developing unique applications, tools, utilities, and tweaks -- and making a living off of it. In today's dollars, that's roughly $87 to about $700, depending on how you calculate inflation and relative value over time. Even Adobe and Microsoft have mostly given up on the packaged software model and are selling most of their application-level software through subscription services. But I can get 10-20 apps for $25, far less than my olden-day customers paid for a single copy of my old software products. Of course, the dollars-per-product sold are different, but so is the size of the total available market.
There's just no way you can spend 40 minutes on a phone call with someone who bought a $3.95 product for which you get all of two dollars and seventy six cents. Yes, coverage on various sites, affiliate programs, and cross-app advertising will generate awareness, but it's still very difficult to stand out in today's app market. Collections agents and the expense of collections was another expense, as was factoring (pre-selling your payments) for larger orders.
Instead, I'm going to look at SaaS as another business model for producing the equivalent of packaged software products.
And, from my perspective, they do all of this without offending me, or making me feel pressured. When somebody purchases the Basic version, you can serve them a screen that tries to upsell them on the benefits of the Pro version.
In addition to being annoying, multiple purchases cause red flags with eCommerce and bank processors.
While software developers might think it's logical to remove an item from their shopping cart by changing its quantity to zero, most end-users are totally confused by this process. If you give them a deeply-discounted offer, they might go back to your product pages and make an additional purchase.
Tell your customers the advantages of signing up for your free email newsletter so that they'll get tips and tricks on how to use their software more effectively. If you are selling software, you need to deliver it and be paid, all while protecting your intellectual property, the payment and your customers.
Unless you want to handle all the security and payment issues yourself, this is the way to go. Click image to get bigger picture, and if you find Ecommerce Solutions For Online Software Sales Selling Software interesting, you might pin it to Pinterest. In the packaged goods days, you had to pay to produce a minimum quantity of units, and you often wound up producing the same size production runs, regardless of whether one product vastly outsold the others.
There's just no way to throw $50-100K at the problem and know you'll be seen by everyone who matters. The problems of collecting from distributors were legendary among most mid-sized software companies.
And a month later, when your customer sees multiple purchases from the same vendor, they may get confused and issue a chargeback. Tell them that they'll receive notifications about new releases of the program that they purchased, as well as discounts on other fine software from your company. When naming your family members, there are two terms that cause people to wince: "Special Edition" reminds a lot of prospects of the nearly-worthless versions of commercial software that come bundled with hardware. Assure them that you'll never use their name or email address for anything except sending them your newsletter.
And the misspelled "Lite" is a term that evokes in many prospects the sensation of fingernails on the blackboard.



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