My seating planner software, PerfectTablePlan, is now at v7. Major upgrades are paid (discounted 60% compared to new licences), which means I have done 6 cycles of paid upgrades. I was curious about how long it took people to upgrade, and what percentage of sales are upgrades. So I took a few minutes to crunch the numbers direct from my licence key database, using my data wrangling software, Easy Data Transform.
Here are the number of upgrade licences I sold for each week after the major upgrade. Each release is in a different colour. The values are normalised so that the peak is the same height for each release:
Upgrade licences sold per week after a major upgrade, across 6 upgrades
That looks rather messy. So here it is with the values for the 6 upgrades summed:
Upgrade licences sold per week after a major upgrade, summed across 6 upgrades.
There is a long tail of upgrades. Even when the gap between releases was 6 years, I was still getting regular upgrade purchases.
With the v5 to v6 upgrade it took:
23 weeks before 50% of the upgrades were sold.
74 weeks before 75% of the upgrades were sold.
So it isn’t a neat exponential decay.
This table shows how many users actually upgraded from v5 to v6:
Edition
Upgraded
Home edition
12%
Advanced edition
31%
Professional edition
45%
Most of the Home edition purchasers are buying a licence for a one-off event, such as a wedding. So it is not surprising that they are much less likely to upgrade. But I think it also shows that less price-sensitive customers are significantly more likely to upgrade, even when the upgrade is more expensive.
This graph show the percentage of PerfectTablePlan licences sold each month that were upgrades, over the 20 year life of the product:
Percentage of sales that are upgrades per month.
You can see that upgrades are still increasingly important over time. Upgrades are worth less than new sales, so selling 80% upgrade licences in a month doesn’t mean 80% of revenue is from upgrades. However, upgrades are still an increasingly significant source of revenue for us. I’m glad I never agree to free upgrades for life.
Could I have made more sales with more frequent major upgrades? Definitely. But I was also working on other projects. And I am not out to squeeze every last penny out of my loyal customers.
Could I have made more sales with a subscription model? Possibly. But subscriptions weren’t really a thing for desktop software, when I started 20 years ago. And I never felt like making a major change to a licensing model that had worked well for me, so far.
I am always on the lookout for cost and time effective ways that I can market my software products. Previously, I have had quite a lot of success with Google Adwords Pay Per Click ads. However, the law of shitty clickthroughs means that advertising platforms generally get less and less profitable (for the advertisers) over time. And Google Adwords is a case study of that law in action. As Reddit is a less mature advertising platform, I thought it might still offer opportunities for a decent return. So I decided to experiment with advertising my data munging software, Easy Data Transform, on Reddit.
[By the way, I understand that nobody goes to Reddit because they want to see ads. But commercial products need to market themselves to survive, and Reddit probably wouldn’t exist without ads. Yay capitalism.]
Setup
The basic process to get started with Reddit Ads is:
Sign up for a Reddit Ads account.
Enter your details and credit card number.
Create a campaign.
Create one or more ad groups for your campaign. Choose a bid for each ad group, which countries you want it shown in and who you want it shown to.
Create one or more ads for each group.
Add the Reddit tracking pixel to every page of your website.
Set up conversion goals.
All pretty standard stuff for anyone who has used Google Adwords. The twist with Reddit is that you can advertise to communities (sub-Reddits), rather than based on search keywords. For example, Easy Data Transform is a much better tool for most data wrangling tasks than Excel, so I can bid to show ads targeted at Excel users in communities such as: reddit.com/r/excel/ and reddit.com/r/ExcelTips/.
Like Adwords, there are various ways to bid. I don’t want the advertising platform to set the bid prices for me (because I’m not insane), so I opted for fixed price bids of between $0.20 and $0.40 per click. Some of the ad groups suggested much higher bids than that. For example, the suggested bid for my Excel ad group is $0.79 to $4.79 per click!
However, Easy Data Transform is only a one time payment of $99. Paying more than $0.40 per click is unlikely to be profitable for me, especially when you factor in support costs. So that is the maximum I was prepared to bid. Also, the suggested bids are just the ad platform trying to push up the bid price. Something that anyone who has used Google Adwords will be all too familiar with. I was still able to get clicks, bidding significantly less than the recommended minimum.
I also set a daily maximum for each ad group, just in case I had messed up and added a zero in a bid somewhere.
I created multiple ads for each ad group, with a range of different text and images specific to the communities targeted. Here are some of the ones I ran in the Excel ad group:
I didn’t try to use edgy images or memes, because that isn’t really my style. There is an option to turn comments on below ads. As Reddit users are generally not well-disposed to ads, I didn’t try turning this on.
Based on hard-won experience with Google Adwords, I only set my ads to run in wealthy countries. I also restricted my ads to people on desktop devices as Easy Data Transform only runs on the desktop.
When Easy Data Transform is installed, it opens a page on my website with some instructions. So I used this to set up the Reddit conversion tracking to count the number of times a click ended up with a successful install of either the Windows or Mac version of Easy Data Transform.
I monitored the performance of the ads and disabled those that has poor click through or conversion rates and made variants of the more successful ones. Darwinian evolution for ads. I ended up creating 70 ads across 15 ad groups, targeting 50 communities.
I wasted an hour trying to get Reddit to recognize that I had installed their tracking pixel. But, overall, I found the Reddit Ads relatively simple to setup and monitor. Especially compared to the byzantine monstrosity that Google Adwords has become.
Reddit advertises a deal where you can get $500 of free ads.
But the link was broken when I clicked on it. Someone else I spoke to said they had tried to find out more, but gave up when they found out you had to have a phone call with a sales person at Reddit.
Results
I ran my experiment from 08-Jul-2025 to 31-Jul-2025. These are the stats, according to reddit.
Spend
$851.04
Impressions
490,478
Clicks
3,585
Windows installs
177
Mac installs
63
Total installs
240
Click Through Rate
0.73%
Cost Per Click
$0.24
Click to install conversion rate
6.59%
Cost Per Install
$3.55
I generally reckon that somewhere around 10% of people who install are going on to buy. So $3.55 per install would mean around $35.50 cost per sale, which is reasonable for a $99 sale. So that all looks quite encouraging.
But, comparing the Reddit number to the numbers I get from Google Analytics and my web logs, I think the Reddit numbers are dubious. At best. In a week when Reddit says it sent me 1174 clicks, Google Analytics says I received 590 referrals from Reddit and my web log says I received 639 referrals from Reddit. Some of the difference may be due to comparing sessions with clicks, time zones etc. But it looks fishy.
The discrepancy is even greater if you look at conversions. The total installs per week reported by Google Analytics and my web logs didn’t go up anything like you would expect from looking at the Reddit conversion numbers. If you dig a bit further, you find that Reddit uses ‘modeled conversions‘ to:
“Gain a more complete view of your ads performance with modeled conversions, which leverages machine learning to bridge attribution gaps caused by signal loss.”
Uh huh. Sounds suspiciously like ‘making shit up’.
And then there are the sales. Or lack of. I don’t have detailed tracking of exactly where every sale comes from. But I estimate that my $851 outlay on ads resulted in between $0 and $400 in additional sales. Which is not good, given that I don’t have VC money to burn. Especially when you factor in the time taken to run this experiment.
The top 5 countries for spend were:
Italy
Spain
France
Germany
Singapore
The US only accounted for 0.28% of impressions, 13 clicks and $3.81 in spend. Presumably because the US market is more competitive, and I wasn’t bidding enough to get my ads shown.
You can look at various breakdowns by country, community, device etc. This is helpful. But some of the breakdowns make no sense. For example, it says that 41% of the click throughs from people reading Mac-related communities were from Windows PCs. That sounds very unlikely!
But the worst is still to come. Feast your eyes on this Google Analytics data from my website:
Average engaged time per active user (seconds)
Engaged sessions per active user
Google / organic
33
0.75
Successfulsoftware.net / referral
31
0.74
Youtube.com / referral
27
0.86
Chatgpt.com / referral
24
0.69
Google / CPC
16
0.65
Reddit / referral
8
0.25
8 seconds! That is the mean, not the median. Yikes. And 75% of the sessions didn’t result in any meaningful engagement. This makes me wonder if the majority of the Reddit clicks are accidental.
I had intended to spend $1000 on this experiment, but the results were sufficiently horrible that I stopped before then.
If I had spent a lot of time tweaking the ad images and text, landing pages, communities and countries, then I could probably have improved things a bit. But I doubt I could ever get a worthwhile return on my time and money.
If the lifetime value of a sale is a lot more than $99 for you, or your product is a good fit for Reddit, then Reddit Ads might be worth trying. But be sure not to take any Reddit numbers at face value.