Hammers Sell Better Than Software

Back in April my friend and fellow microISV Andy Brice conducted a software vendor survey that highlighted something that doesn’t get the attention it should: while about a third of the people that visit your site download your trial version, only 1% end up buying.

Why is that? Now maybe the 92 respondents to the survey were atypical, but I don’t think so: I’ve heard that “only 1% buy” adage for years.

Here’s a related factoid Andy’s survey unearthed: the average Mac product conversion ratio is more than 4 times higher than the Windows product conversion ratio.

Now maybe Mac owners are four times richer than Windows users, or maybe because there’s four times less software to choose from. But as a Windows developer who switched two years ago, I haven’t noticed four times more money in my bank account or not found a decent range of software to accessorize my MacBook Pro with. In fact, I’ve noticed – and so has my spouse – I’m much more likely to buy a Mac app I trial than I was likely to buy as a Windows guy.

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).

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.

Join us for an informal gathering in Mountain View!

If you’ve met with one of the Avangate guys or gals, then you probably know that this year we worked hard. We attended lots of conferences, had presentations, booths and wrote a lot of white papers and other articles. But you should also know that we also like to play hard and relax with our friends and partners.

That’s why I’m happy to invite you at the Casual Drinks with Avangate – Thursday, November 20th, 2008 at the Tied House in Mountain View. It’s the perfect time to come meet the Avangate US team and schmooze with other people from the software business. The event will be hosted by Casey Potenzone, VP Sales, and Daniel Nicolescu, Business Development Manager.

Discovering the fan part of your partners and mingle with software people seems like having a good time to me. Or at least because it’s easier to explain what you do to people that talk the same business language like you do, it should be a relaxed, informal schmooze. Of course I also happen to know that Daniel is an excellent wine expert so it’s always nice to be around him at parties ;)

If it sounds like fun to you too, register now here.

Download free white paper: "Best Practices in Software Affiliate Marketing"

At any time, but especially during recession periods, a software vendor needs the most cost-effective tools that can bring him extra revenue or at least keep the sales volumes constant. He needs to have a good exposure of his brand and his product(s) on the Internet.

Affiliate marketing is one of the ways to go in the software business. The costs for doing such a campaign are low and the results can make the difference.

But how can a vendor attract affiliates that sell software?

Here are a few simple things to do in order to get the most out of an affiliate marketing campaign:

• Having an affiliate sign-up page on the vendor’s website
• Communicating through a dedicated e-mail address for affiliate matters
• Creating customized landing pages on the vendor’s website
• Sending marketing materials to the affiliates
• Being present on affiliate forums and blogs
• Keeping in touch with your affiliates

This is only the beginning. To be truly “affiliate efficient”, a software vendor must continuously monitor the activity of the affiliates and to pay them commissions according to their performance.

We’ve prepared a white paper: “Best Practices in Software Affiliate Marketing” (yes, it is free!) which will help you find out more about attracting affiliates, solving the channel problem and preventing affiliate fraud. We hope you’ll enjoy it and don’t forget to leave us some feedback on it.

Are you as “affiliate efficient” as you would like to be?

On Friday a lot of new people made it to the ISDEF conference. In the morning we had a presentation about doing business with Nokia. Smartphone/PDA software might just be a good development area in the next years.

In the afternoon I had a round table with other eCommerce providers where we answered questions about the software/shareware industry.

We have discussed about the differences between the affiliates and resellers, mainly explaining that affiliates work best when you only need online sales and promotion, while the resellers are better for longer term business developments and offline distribution.

The next question that came up was about the conflict when both affiliates and the software vendors are bidding on the same AdWords keywords. While the positions expressed where very different, the conclusion was that some niche affiliates (especially if you are talking about local markets) might be able to do better AdWords and take advantage of the long-tail. So the decision to let affiliates do AdWords should really be based on efficiency.