Monthly Archives: August 2011

Programming skills wanted

I am looking to outsource some self-contained programming tasks in areas that I don’t have expertise in. I am hoping that someone reading this blog might be able to help (or know someone that can) so I don’t have to go through outsourcing sites. These are the two skills sets I am currently looking for:

  1. Javascript/CSS/HTML – To write a single page web app. This will have a relatively simple UI displaying data read from XML. The app will need to work on a wide range of browsers and devices. Ideally you should also have some web design skills, but this isn’t essential.
  2. C++/Qt 4/OpenGL – To write a relatively simple 3D visualization model that runs on Windows and Mac. This will involve populating a 3D space with specified shapes and allowing simple movement around it.

Details:

  • I am expecting that I will need 2 different people, but it is possible there might be someone out there with experience in both.
  • These are small projects (probably less than 2 weeks for task 1 and less than 1 week for task 2). But they might lead on to more work in future.
  • Time scales are reasonably relaxed. Ideally I would like the work to be finished by the end of September.
  • You can be based anywhere in the world, but must be able to communicate in English (written and spoken).
  • Full copyright to the work will pass to my company on full payment.
  • Obviously cost is an issue. If I have 2 promising candidates, I am likely to pick the cheaper one.

If you are interested in doing either of these tasks please email me ( andy at oryxdigital.com ) before the end of Friday 26th August with subject “programming work” and a brief outline of:

  • Which of the 2 tasks you are interested in.
  • Your relevant experience. Ideally including details of related projects completed.
  • Your daily rate in Pounds Sterlings or US dollars.

I will send detailed specs to a shortlist of the best candidates. The work will be awarded on the basis of fixed price bids against the spec. Please don’t apply unless you have relevant experience – if I wanted a programmer without experience in these areas I could do it myself. ;0)

Easy2Sync file synchronization software

I recently did a day of consulting for Thomas Holz looking at his file synchronization software, Easy2Sync. We covered a lot of issues, including: Adwords, website design, product ‘look & feel’, usability, positioning, pricing, logos and why his software is still at v1 after 10 years! He was kind enough to write me this testimonial:

I’ve been running a software company for over 10 years now and thought that I knew most of the tricks and had fixed most of the usual issues. Still, I hired Andy to check my file sync software to see what I’ve been missing. And that were quite a few things. Actually I was surprised at the wide range of angles that Andy checked. Not only the software and website (as it was to be expected), but also Adwords, business, sales and marketing tactics. I’m still working on implementing the changes, but I’m already sure that this was a very good investment which will easily pay off – not only for my file sync product, but also for my other products.

Thomas Holz, http://www.easy2sync.com

If you are looking for Windows file sync software that doesn’t store your data on a third party server, check out Easy2Sync.

Selling software vs selling eyeballs

Lets say I’ve written some downloadable software and I want to make some money from it (‘monetize it’  in the ghastly common parlance). Should I charge people for using the software or should I give them the software for free and make my money from ads?

Lets look at some numbers.

The typical conversion rate for downloadable software is around 1%. That means that about 1% of the people that visit your site will typically buy your software. So, for each $1 of your sale price you will make around $0.01 per unique visit. Downloadable software is often priced around $30, so lets say $0.30 per unique visitor. Some software sells for less than $30, and some for a lot more. Also I haven’t taken account of the lifetime value of a customer (e.g. upgrades) – which will increase the value per customer; or payment processing and advertising costs – which will reduce the value per customer. It is just a ball park figure.

How much money could I make from advertising if I give the software away instead? I have been doing some research for a while on this. Based on various data I have gleaned from the BOS forum and blogs, advertisers typically pay per $1-$2 per 1000 impressions (CPM). Some data points:

  • A well known ad network offered me a $2 CPM (-19% commission) to put ads on this blog.
  • Dating site plentyoffish.com reported making $10k/day from Adsense off 200 million pages per month in 2006, which is a CPM of $1.5
  • A sample of 8 Facebook app developers were averaging less than $1 CPM.
  • “If a site like Stack Overflow, which does almost a million pageviews a day, can’t make enough to cover even one person at half time using Google AdSense, how does anyone make a living with AdSense? Does it even work?” (Stackoverflow blog)
  • “Charging your end user isn’t the only way of pricing software. You can choose to give it away for free and then make money by, for example, charging for consulting, installation and training; or selling advertising. The latter, although a common model for web sites, is extremely hard to make work. CPM – the cost per thousand impressions – can be as low as a dollar. In other words, to generate one thousand dollars of revenue you might need to serve up as many as a million pages. To generate enough revenue to support a team of three or four people, that means having ten million page views per month. Most web applications simply aren’t going to attract that sort of traffic.” (p57 of “Don’t just roll the dice”)

So, taking a ballpark CPM of $1.5, I would be making $0.0015 per page impression.

Obviously I am comparing apples (unique visitors) and pears (impressions) here. How many impressions does 1 unique visitors equal? My own table planning software averages around 2 impressions per unique visitor (many visitors bounce out after reading 1 page, even those that buy might only visit the home, download and purchase pages). So, assuming this is typical, the product based site described above should be making around $0.15 per page impression. Based on these (admittedly rough) numbers an ad driven site needs approximately 100 times as many page impressions per day to make the same money as a product driven site. To make around $100k per year the product site would need about 900 visitors/1,800 impressions per day. To make the same amount the ad driven site would need around 90,000 visitors/180,000 impressions per day. But it is worse than that because the ad driven site is going to have significant hosting fees and potentially many more users to provide support for. I know which business model I prefer.

So why not get the best of both worlds – sell the software AND put ads on the site? Because then you are sending out all sorts of bad vibes (“this software isn’t good enough that they can make a living off it”) for a measly 1% extra income from the ads. I’m confident the presence of ads will lose you >1% in product sales.

An ad supported model is only viable when you have lots of traffic. Most downloadable software (or web apps) won’t be able to generate that sort of traffic, even if it is good and you give it away for free. If you really want to run an ad supported business, you are probably better off basing it around forums and user generated content than free software.

In the final analysis if you are creating software I think it makes more sense to create something of value, grow some balls and charge for it. Rather than giving it away and selling eyeballs in the hope that someone else will take their money and throw you some scraps. Think balls, not eyeballs.