I’m really excited to bring to your attention the brand new book written by our friend and collaborator, Bob Walsh.  It’s called “The Web Startup Success Guide” and its official launch date is next week, on the 22nd of July, 2009 (you can find it on Amazon). The book promises to be a great resource for startups, the must-read type and I can’t wait to get a copy:). I promise a larger review after I read the whole book, until then, just wanted to share with you a short excerpt about Avangate.

Of course, other eCommerce providers are shortly reviewed in Bob’s book, but Avangate is his “no 1″:D. So here’s the whole description of Avangate in “The Web Startup Success Guide”:

"The Web Startup Success Guide", by Bob Walsh

The first alternative to PayPal I recommend is Avangate (http://www.avangate.com), for two reasons. First, over the years I’ve met and talked with a lot of Avangate’s management and staff at all sorts of startup/microISV conferences and events they sponsor or at which they speak or participate. This is a company that well and truly likes and supports startups.

Second, and more tellingly, when people running startups and microISVs swap recommendations as to who to use for e-commerce at those various conferences or at huge public forums such as Joel on Software Business of Software (http://discuss.joelonsoftware.com/default.asp?biz) or private boards such as that run by the Association of Shareware Professionals (http://www.asp-shareware.org), you find nothing but positive recommendations when it comes to Avangate.

Avangate does more than process payments. From fielding a solid affiliate program to robust sales and lead analytics, software download, and physical fulfillment and registration key delivery, this company can make a lot of your startup’s headaches go away. Of course, more service means you pay for more than bare-bones credit card processing – depending on which services you want, you’ll pay somewhere between 4.9% and 8% per sale.

During a research on shopping cart conversion rates I did the last couple of weeks, I found websites with 0,4% funnel conversion rates and others with completion rates up to 70%. I never expected to find such big discrepancies; no analysis can be made in such conditions so I started to look up  reasons for these discrepancies.

After talking to different software vendors about various issues their potential customers reported and after noticing different trends in multiple analytics data, I found the fugitive criminal guilty for many many abandons in shopping carts: Shopper Trust.

Shopper Trust Wanted. Reward Offered.

How to find it? Easy, or so they say. Check out the following clues.

1. Among Trust’s best friends there’s a guy named “Price”

Showing prices & discounts next to buy buttons

It’s important for your users to pay the “right” price for your products, but more important is to really know how much a product costs. You might say this is obvious (I for sure would have said that), but going from one website to another I found many where it was unclear how much a product costs.

It’s not mandatory to  have the price on the right or on the left of the screen. The important thing is that when the user says to himself “I wonder how much this software costs. I’d like to buy it”, he should get the answer before he gets to finish his sentence.

My 2 cents is to always have the price next to the buy button or link. This way you make sure that every time a user gets in the shopping cart he already knows the price of your product. Also, place it next to the product box, something very similar to the offline world where the user is used to always have the price next to the product he is buying.

Lots of software vendors ask themselves this question and, unfortunately, I’ve seen cases when the conclusion they reach is that “affiliate marketing doesn’t work” or as Joel Spolsky says, in his case, it’s “ a big waste of time“.

Both for these vendors and for the ones that think their affiliate sales channel could be improved and seeing the positive feedback I got from our software publishers regarding the issue of vendor involvement to motivate affiliates, I’m starting a series of posts with a more hands-on approach. I hope you will find them useful.

Affiliates Info Page

The first thing I’m going to talk about is what you can do in order to help potential affiliates find you and join your affiliate program, thus maximizing the chances to sell more using this channel.

The joint Avangate – The VAR City webinar is just what the title says: a 60 minute crash course on channel management – touching on key things about selling through resellers, from what it takes to lay the foundations for a successful reseller network to the latest technologies available for channel management.

Are your products channel ready?

Channel expert Ken Beam @ The VAR City brought in his 25 years of experience in Strategic Partnership Management and Development. Channel readiness quiz aside (assuming you passed it :)), Ken pointed out you need to really understand resellers and what motivates them, what business model they work on (a reseller on a 70/30 model, where 70% of revenue comes from services will obviously be interested in services opportunities).

Software Channel Survey Results - download now!

As you know, we’ve done a survey on how the crisis is impacting the channel distribution in the software industry. We’ve looked at the results and – although not statistically representative (survey conducted on the internet on a self-selected sample)-, they make an interesting reading, showing some trends and providing tips & solutions for channel challenges.

Frankly, I was (pleasantly) surprised to see how much weight both ISVs and resellers give to joint marketing programs, measuring, efficiency, communication…  obviously no one can afford to pay lip service to these actions, they are for real.

Encouragingly enough, vendors and resellers acknowledge the same top channel challenges and consider similar solutions for tackling problems.

This is part 2 of a 5-part series: How to convert more software trials to purchases.

There are three camps about asking for contact info before a trial starts:

A.  Ask for nothing – Maximize number of downloads; minimize barriers.
B.  Show 1 – 4 fields - Make them optional. Get what you can, then get out of the way.
C.  Show 14 fields – Get their street address. Only serious people will download so you don’t waste your time with crap trials.

Allow me to convince you that B is the way to go.

Let’s first dispense with C.

If the world of free social media has taught us anything, it’s that “invasion without permission” is dead. You haven’t earned people’s contact information so they won’t give it.