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So here you are, another ordinary day running your microISV. Pretty much like yesterday; not unlike tomorrow.

You’re doing what you’ve done, you’re all nice and cozy in your daily routine. The problem you have is that while you’ve been sleepwalking along, the rest of the world has been very much awake. And unless you wake up and stop drifting you’re going to be like someone falling asleep while driving: fine, until you hit the oncoming truck in the other lane.

Let’s take a little test, shall we? Maybe you don’t need a wake up call and can skip the rest of this post.

This is part 1 of a 5-part series: How to convert more software trials to purchases.

I was the second software developer at Photodex in the ’90s.  We made CompuPic, the fastest thumbnailing image browser (before Microsoft built it into Explorer). We kept getting tech support calls like this:

Customer:  Where’s CompuPic?
Us:  I’m sorry?  What do you mean?
Customer:  I got CompuPic but I don’t know where it is.
Us: Did you download the installer?
Customer: Yes.
Us: Did you run the installer?
Customer: I don’t think so.  I don’t know where the installer is.
Us: Can you check your desktop for something called “CompuPic Installer”?
Customer: Ohhhhh, yes I found it.  Should I run it?

What if I told you that five changes to your software could increase revenue 25-50%?

It’s possible because of two facts: most trials don’t convert, and you’re too close to your software to see its obvious flaws.

The conversion rate from visits to sales according to a study presented by Andy Brice is around 1% with specific variations.  But the abandon rate on software trials is astonishingly high.  In an informal poll of a few software company owners I know, everyone agreed that 80-90% of downloads never become real trials.

In a way, that’s good news, because it means there’s lots of room for improvement.  Think about it – if only 20% of your potential customers make the leap from download to trial, shouldn’t it be possible to squeeze out another 5-10%?  That would be 25-50% more trials even with the same number of downloads!  And more trials means more revenue.

In May 2009, IDC and Business Software Alliance released their sixth annual global software piracy study. It’s a useful insight that offers interesting data about the business development opportunities some countries and regions have.

Here are the major facts that stick out of this report:

• in 2008, out of the 110 countries studies, the piracy rate has decreased in more than half of them. This effect was mostly seen in Eastern Europe and some APAC countries;
• when looking at the global picture, the total piracy rate actually rose in 2008, continuing the trend set in the last years. This happened largely due to increasing PC shipments in high-piracy countries;
• the retail value of unlicensed software increased by 11% in 2008, including the exchange rates effect;
• the economic recession didn’t have an important effect on software piracy.

The Intel® Business Exchange Software Store in Europe has just been launched, bringing a new sales channel for selling software to European countries – with localized sites for the UK, Germany,  and France (official launch to follow by the end of the month). Good news.

We are, of course, proud to boast that Avangate provides the hosting, billing and process execution of the new market place… that the Avangate eCommerce platform is the core engine of the European Intel® Business Exchange… More good news.

Focused on SMBs
Yes, indeed, Intel ® BX is focused on SMBs – providing an advantage for this market. Why was there a need for this? Because SMBs often struggle to find technology products, services and support that fit their particular budgets and needs. The Intel ® BX Software Store helps them quickly and efficiently find the software solution they need to help implement business solutions. That’s why the store features extensive product details and facilitates customer ratings and reviews.

A recession is a good time to sit back and analyze your go to market strategy and, part of this, to think about going international, online or through a reseller network. You may be already selling internationally in same language markets/through a few reseller partners – now is a good time to expand.

So why is it good to go international NOW?

• Spread risk (don’t put all eggs in one basket).
• Increase market base (there’s a variety of markets out there, from small to large software markets in both established and emerging economies. Not to mention that an increasing online population makes it easier than ever before to sell software online).
• Increase revenue.

Let’s dwell on this last point for a bit. When it comes to building a partner network, you need to start right about now to be fully up to speed when the recession is over and things start booming again. It doesn’t mean that you wouldn’t get anything out of your channel during the recession (that’s not a promise either), but in general you have to be ready to support it for at least 6 months without seeing much return.