Category Archives: microISV

Deciding what features to implement

This is a guest post from roving software entrepreneur, Steve McLeod.

Each feature you add to your software product takes time to implement, adds ongoing complexity, and is hard to get rid of later. So you need to choose wisely when adding new features.

Here are some tips on choosing which features to implement.

Does your product really need new features?

This question might be surprising, but it is an important one to ask yourself. A software product is never completely finished. There is always scope for improvement. This makes it hard to know when to stop working on it.

If your product is mature and has stable revenue, there might not be much opportunity to increase sales. Adding new features would please some customers, but would not be a good use of your time.

Products that should be considered “done” can still have a large backlog. Don’t be fooled into thinking that your product will only be done once all existing feature requests are done.

Your product might have great potential to grow, but not by adding new features. Perhaps you need to improve your sales and marketing efforts. Don’t use your feature request backlog as an excuse to neglect the other important parts of running your product.

It’s okay to ignore your backlog

Feature request backlogs seem to never shrink. Implementing improvements leads to even more feature requests.

Looking at your backlog can be overwhelming. You’ll see feature requests that are years old. There are others that you intended to implement, but never did. It is okay to ignore these.

Don’t feel that the entire backlog consists of promises that must be kept. Some requests are no longer relevant. Some are from customers who no longer need your product. Some are simply not worth the substantial effort.

Keep your grand vision in mind

Prefer to implement highly requested features. But before you do, make sure each feature fits your long-term plans. Ask yourself:

  • who is your ideal customer? Is the feature relevant to them? For example, your enterprise customers might be asking for “single sign-on”, whereas you are more interested in working with small businesses.
  • will this be an ongoing cost- and time-sink? For example, a particular feature could require HIPAA (a US health industry regulation) compliance, while you have no interest in the extra workload and costs of HIPAA compliance.
  • does this proposed feature agree with your marketing angle?

Each new feature has ongoing costs

Remember that each additional feature comes with ongoing costs in support and complexity. Each new feature is an additional place for bugs to hide, adding to your future workload. Take these future costs into account when deciding if a feature should be added.

Features interact with each other, sometimes in unexpected ways. Even one additional checkbox in a settings panel can lead to ongoing confusion.

Be wary in particular of features that require integration with third party products. For example, many a product owner was burned when Twitter turned off some parts of their public API. Another example is my own experience adding support for connecting to customers’ email inboxes. I then found myself supporting not just my own product’s problems, but those caused by customers’ email service provider.

Sales-blockers are high priority

Not all feature requests are equal. Requests for feature A might come only from long time customers of your product, while feature B is requested only by your trial customers. It sounds ruthless, but you should prioritise the feature requested by trial customers.

When running a business, you do need to care for financial concerns. Take into consideration that:

  • A trial customer is likely to report a showstopper (for them). When you implement features requested by several trial customers, you are likely to increase revenue.
  • An existing customer is likely to report an inconvenience. You probably won’t lose the customer by delaying the improvement they asked for.
  • You need new customers to keep your business healthy.

It is important, of course, to care for existing customers. Don’t take this as an argument to ignore existing customers altogether in favour of potential customers.

Identifying and fixing sales blockers as a matter of priority is especially important for new products. It takes time to find the right balance of features a new product needs to meet the demands of the market.

Prefer the easy things, but not always

Let’s say you are deciding which of two features to implement next. Both feature A and feature B have been requested dozens of times. Feature A will take a week’s worth of work, and feature B will take a month’s work. Which one do you do?

Feature A, right? Maybe not.

Feature A is usually the correct choice. But you’ll be repeating this scenario over and over. Your product will gradually gain many relatively trivial features, while never getting the important features you need to create a compelling product.

Sometimes you need to do the hard work to add the features that are difficult to implement.

Listen to your customers…

Your customers are a great source of ideas for improvements to your product. As they use your product they discover what’s missing and what’s poorly implemented.

Therefore make it exceedingly easy for your customers to get suggestions to you. Consider adding a “Suggest an Improvement” link to your support page and to your help menu, if applicable. This makes it clear to your customers that you are actively seeking suggestions. My experience has been that customers notice these links and use them.

A “Suggest an Improvement” link can be as simple as a “mailto” link. A basic dialog or web form also works well. If you are seeking inspiration on how to do this, look at the “Report an Issue” form linked from the Google Chrome’s Help menu.

Another way to get customer suggestions is by asking them via a survey. This is okay, but it requires people to imagine back to when they last used your product. Us humans tend to be pretty poor at recalling things. It is much better to encourage customers to send suggestions as they encounter difficulties, while it is foremost in their mind.

I found collecting and organizing feedback for my own product, Poker Copilot, to be a pain. So I launched a new product to help manage feature requests. It allows your customers to suggest and upvote improvements for your product.

…and not your competitors

You’ve probably already heard that you should “listen to your customers, not your competitors.” I’m repeating it, because forgetting this can be deadly to your business.

Feature-envy leads us to believe we have to add every feature our competitors offer. Like regular envy, it is best to ignore it.

When your competitor announces a new feature, it can be demoralising. You feel you are falling behind and unable to compete. If the feature looks impressive, you’ll be tempted to add it to your product as soon as you can.

But wait. Have any of your customers actually requested this feature that your competitor added? If not, it is probably because it is not all that useful to your customers.

Your competitor might eventually regret adding that feature, as it turns out that only a small but demanding percentage of their customers use it. By not adding it, you could be giving yourself an advantage.

I’ve discovered that customers often learn about the good features my competitors have. They then tell me that they want these features. Only then do I start considering adding them.

Small tweaks versus major features

I just recommended listening to customers. But be careful of only using customer requests as a source for improvements.

Your customers tend to ask for incremental improvements. Customers are more likely to ask for an additional option in a drop-down menu than they are for a innovative new way to view their data.

If you rely on customer suggestions alone, you’ll never get the innovative new features that can make your product something much grander.

Make sure you balance your customer-contributed requests with your own innovative improvements.

Beware of preferring “pet” features

I just argued in favour of choosing innovative improvements. However this comes with a warning. Innovation can be used to justify poor choices. When you are in charge of decisions for your product, you are in danger of choosing improvements that you find interesting instead of those that have a strong business case.

Be careful. You could spend months working on a feature that is not very helpful to your business.

This is the type of feature that only one customer requested, but because it sounds more interesting to you than anything else in your massive backlog of feature requests, you immediately start working on it.

My own experience with this: I added scripting to a product even though no-one had asked for it and my target customer was not the type of person who would be interested in custom scripting. When I announced the scripting feature, not a single person seemed to use it. I eventually got rid of it.

How do you decide?

The tips I’ve offered you in this article come from my own experience. Do you have tips of your own for deciding which features to implement? If so, please add them in the comments below. I’d love to read them!

Steve McLeod runs a small software company in Barcelona, Spain. His products are Poker Copilot, a desktop analytics app for online poker players, and Feature Upvote, a web app that allows your customers to openly suggest and upvote features they want to see in your product.

It’s OK not to have a social media strategy (really)

I have heard various product owners beating themselves up about how they don’t have enough of a social media presence. Well, I have been running a profitable one-man software company for the last 12 years and I am here to tell you that neither of my products have a social strategy worthy of the name – and that’s OK.

My seating planner software, PerfectTablePlan, has a Facebook page and a Google+ page. Whenever I publish a newsletter for PerfectTablePlan I publish a link to the newsletter on these sites (which is a few times per year). That’s pretty much it. My visual planning software, Hyper Plan, has an even smaller social media presence than PerfectTablePlan. To be honest the small amount I do on social media is intended mostly for the benefit of the mighty Google.

My forays into social media have not been encouraging:

  • I once sent out a newsletter to over 3000 opted-in subscribers and encouraged them to follow a newly created PerfectTablePlan Twitter page. Exactly 0 of them did.
  • I created a Pinterest page for PerfectTablePlan and paid someone to post to it for a few weeks. It generated a bit of traffic of questionable quality, but the traffic dried up as soon as they stopped posting.
  • I have tried paid ads on Facebook and Twitter and the results were miserable.
  • The PerfectTablePlan Google+ page has just 14 followers.
  • The PerfectTablePlan Facebook page got a miserable 4 views last week.

The question isn’t whether social media can bring you traffic, but whether that traffic will convert to sales and is social media the best use of your limited time? Social media is a productivity black hole and the opportunity costs of noodling around on Twitter should not be underestimated. Also various studies show that email still out-performs social media by quite a margin.

“E-mail remains a significantly more effective way to acquire customers than social media—nearly 40 times that of Facebook and Twitter combined.” McKinsey

People go on social media to chat to their friends and look at cat videos. Not to buy things. They use search, Amazon and Ebay for that. When is the last time you even looked at an ad in the Facebook sidebar? Or clicked on a sponsored post in Twitter? Exactly.

Making an impact on social media is hard. 90% of tweets are not retweeted. And even the followers that are real humans may only be interested in discounts:

“The IBM Institute for Business Value found that 60-65% of business leaders who believe that consumers follow their brands on social media sites because they want to be a part of a community. Only 25-30% of consumers agree. The top reason consumers follow a brand? To get discounts – not exactly ideal for a company’s bottom line.” Forbes

A lot of the ‘engagement’ on social media is fake. You can buy 1000 Twitter followers for less than £10. The BBC advertised a fake business with “no products and no interesting content” as an experiment on Facebook and got 1,600 highly suspicious ‘likes’ within 24 hoursCopyblogger deleted their facebook page due to the amount of fake followers and the low level of engagement.

A thread I started on the Business of Software forum showed that many other small software product companies had tried and failed with social media. Why do you think you will fare better? Most software products just aren’t inherently social. There is a limit to how much you can usefully say, day after day, about seating planning. I could try and create a social media presence talking about the latest wedding and catering trends and try to sneak in some references to seating plans. But I would rather commit suicide with a cheese grater.

As a rule of thumb it might be worth putting serious effort into social media if yours is the sort of product people are likely to talk to their friends about down the pub. In that case social media may be able to usefully enhance your visibility and reach. But for the vast majority of software that doesn’t fit this description, you are trying to hammer a square peg into a round hole. At the time of writing the pop star Taylor Swift has 74,638,154 Facebook likes. While Intuit, one of the world’s largest software companies, has 221,130 likes.

Next time somebody tells you that you must have a social media campaign ask yourself:

  • Is your product a good fit for social media?
  • Do they have an agenda, e.g. a social media tool, ebook or consultancy to push? Or an article quota to fill?
  • Have they produced any real evidence that a social media campaign translated into actual sales?
  • Is social media the best thing you could be doing with your valuable time?

Ignore any vague waffling about ‘engagement’. Nobody ever paid their mortgage with engagement.

Promoting your software through 1-day sales and bundles

Hyper Plan, my visual planning software for Windows and Mac, has now been for sale for a bit less than 2 years. Given that I am (by choice) doing all the development, marketing and support for both Hyper Plan and my other product, PerfectTablePlan, I have had a limited amount of time to promote Hyper Plan. But Hyper Plan is in a  competitive market, where it is hard to get noticed using traditional promotional techniques such as SEO and PPC. So I have been experimenting with promotion via 1-day sales sites and bundles.

I did several promotions through both and promo. These were 50%-off sales for 1 day (sometimes extended for another day). The site takes 50% commission on the sale, so I only got $10 of my normal $40 ticket price. But I also got exposure to a whole new audience I wouldn’t normally reach.

I also included Hyper Plan in and software bundles. In these bundles customers purchased some 10 items of software at a big discount. The promotions lasted for a few weeks each. I am not at liberty to divulge how much I got for each licence, but a quick calculation based on the price of the bundles and the number of items in the bundle tells you that it was a lot less than $10!

My hopes related to sales sites and bundles were:

  1. A worthwhile amount additional sales revenue.
  2. Increased feedback, giving me more insight for improving the product.
  3. Making money further down the line from major upgrades (e.g. v1 to v2).
  4. That I wouldn’t be swamped in support emails from people who were paying me a lot less than the standard price.
  5. More word-of-mouth sales after the discount has finished.

On analysing the results, the first 4 turned out to be true.

I had previously tried promoting my PerfectTablePlan table planning software on, but the results were disappointing. It just wasn’t a good match for their audience. However Hyper Plan is a more general tool and it did a lot better. The bundles also sold in impressive volumes. The source of Hyper Plan sales revenues to date after commission (but not including upgrades) is show below.


So the extra sales were certainly significant from a revenue point of view, bearing in mind that Hyper Plan is a relatively young and unknown product.

I also got some very useful feedback from the bitsdujour comments section.

I released v2 of Hyper Plan in March 2016. I have crunched the numbers to see how many v1 customers to date have paid for upgrades to v2.

percentage upgrades

I expected that the 1-day sale customers who had paid $20 for the initial licence would be less likely to pay $16 to upgrade to v2 than those who had hadn’t purchased at a heavy discount. I was surprised that the opposite turned out to be true. I don’t have a good theory why.

I don’t have any figures for bundle customer upgrades, as the bundles happened after v2 was released. Given that bundle purchasers probably only wanted a subset of the software in the bundle, I expect the upgrade percentages to be a lot lower than above.

I wasn’t swamped in support emails. In fact things were surprisingly quiet during the bundles, which makes me wonder how many people who purchased the bundle were interested in Hyper Plan.

There were no sustained jumps in traffic or sales after the 1-day sales or bundles ended.

Best of all, the 1-day sales and bundles don’t cost anything, apart from a modest amount of time to set-up.

I know some vendors promote these 1-day sales and bundles to existing customers. But I don’t understand why you would do that. The whole point of these channels is to reach new audiences. Also you risk annoying customers who have paid list price. If you already have an audience you can promote a sale to, then you don’t need 1-day sales sites or bundles. Just email them a discount voucher.

I had one complaint from an existing customer on a forum who had paid full price and then saw Hyper Plan in a 1-day sale. I offered to refund the difference back to them, but they didn’t take me up on it.

In conclusion, the sales and bundle sites brought in useful spikes of additional sales (especially when you include upgrades later on) and feedback, without a big jump in support burden. But they didn’t lead to a noticeable long-term increase in traffic or sales. Obviously every product is different. But if you have a product that needs exposure, isn’t too niche and doesn’t require a lot of support, it may be worth giving 1-day sales and bundles a try.

How to make difficult decisions

When you run a business (even a small business like mine) you have to make a lot of decisions. Many of these decisions are complicated and have to be taken with incomplete information. But you can’t take too long over them, or you will never get anything done. Here are 3 techniques I use to help with difficult decisions.

Break it down

This is a very simple method for breaking a difficult decision down into smaller parts using a spreadsheet.

  • Decide the criteria that are important for the decision. Add a row for each.
  • Add a weighting column. Assign each criteria a weighting in the range 1 to 10, depending on its relative importance to you.
  • Add a column for each option you are considering.
  • Set each criterion/option cell a value in the range 0 to 10, depending on the extent to which the choice for that column fulfils the criteria for that row.
  • Calculate the weighted sum for each column.
  • Choose the outcome with the highest weighted sum.

Here is an example for choosing between 3 different types of hosting:

making difficult decisions

It’s not particularly scientific, but it does force you to systematically break down the problem into smaller parts and justify your decision.

Take the long view

It sometimes helps to stand back and look at the bigger picture. I can think of no better way to do that than to ask a hypothetical (hopefully elderly) future me, lying on my deathbed, which option they approve of. For example, given the choice between adding an innovative new feature to my product or improving the conversion funnel by a few percent, I think future me would be happier that I chose to add the innovative new feature. It is also a useful reminder that many decisions probably aren’t all that important in the grand scheme of things.

Flip a coin

Sometimes you need to make a decision, but you don’t have enough information or the time taken to get that information is going to cost you more than making the wrong decision. In that case, don’t agonise over it. Just roll a dice or flip a coin and move on.

Software products are *not* passive income

Some people dream of creating a ‘passive’ income that generates money on auto-pilot while they go and learn tango in Argentina, or whatever their chosen path to the top of Maslow’s hierarchy is. In my experience, a software product is a long way from being a passive income. I know lots of people who own software product businesses. I don’t think any of them regard it as a passive income either.

While on holiday I’ve run my own business from a laptop in less than an hour per day. But the business would start to suffer if I did this for more than a few months. Even if you are not adding new features, software products require significant effort to maintain. Sales queries need answering, customers need support and bugs need fixing. New operating systems will often break things in otherwise stable products (particularly on Mac OS X). And there is always admin stuff to do: tax, accounts and a hundred other things. Marketing also requires ongoing effort, whether it be in the form of A/B testing, newsletters, SEO, PPC or blogging. If you aren’t continually improving your product and marketing, then harder working competitors are soon going to start eating your lunch. You can hire people to do the work for you. But then you have to train and manage those people. And the most capable people have a habit of going off to start their own companies.

There may be some products that can generate passive incomes. Perhaps ebooks, training videos and mobile apps. But I expect they still need significant amounts of ongoing marketing effort if they are going to earn more than pocket money. Remember – if it sounds too good to be true, it probably is…

Confessions of a bad software entrepreneur

If you read blogs and forums and go to conferences you will soon pick up that there are a number of recommended ‘best practices’ for being a successful software entrepreneur. I don’t conform to many of them:

SaaS product

No. Both my products are desktop based.

B2B market

Not really. Most of my customers are consumers.


No. I bootstrapped the business from my own savings.

Subscription model

No. My licences are a one-time fee.

Beautifully designed responsive website

No! converts well, but it is certainly not beautiful or responsive (a new website is on the way though).


No. Just me.


No. I have delegated bookkeeping to my lovely and talented wife (who also proof reads this blog) but I don’t have any employees or virtual assistant and do the vast majority of things myself, including all the marketing, sales, programming, documentation and customer support.

Drip email campaign

No. One day perhaps.


Not really. I like variety. I have 2 products under active development and also do some consulting and training.

Social media campaign

No. I have long since given up on Twitter and Facebook as marketing channels.

Mastermind group

No. I do talk with my peers in forums, at meetups and conferences, but not in any structured way.

Started young

No. I was pushing 40 when I started my entrepreneurial career.

Endless growth

No. I can’t really grow the business much more without taking on staff or becoming a workaholic. But I am happy just to maintain the current level of sales. [1]

Exit plan

No. I haven’t given it any real thought. I am quite happy doing what I’m doing.


My one-man software business has made me a nice living doing a job I enjoy for more than 10 years. So I guess I must be doing something right. There is no ‘one true way’ to be an entrepreneur. If you have a good product with good support and good marketing, most other things are optional.

[1] Added after suggestion by Tom Reader.