Tag Archives: software

Bundlefox review

I have been using bundles and 1-day sales as a useful way to increase the exposure for my visual planning software. I have had positive experiences with BitsDuJour, Macupdate and BundleHunt. Once you put your software in one bundle you inevitably get approached by people who run other bundle promotions. I was approached by Bundlefox and agreed to put Hyper Plan in their Mac software bundle. I wish I hadn’t. It has been a pretty miserable experience from start to finish. In brief:

  • I never knew when the promotion was going to start or end. I was told it was going to start on 27th February, but it eventually started on 20th April. It was supposed to run for 3 weeks, but actually ran for 6 weeks. This is a problem, because it means you can’t put your software in other sale or bundle that require an exclusive discount.
  • Communication was poor. They generally took several days to reply to emails.
  • The number of licenses sold was very low, especially compared with sales of Hyper Plan on BundleHunt.
  • Worst of all, they only paid me 60% of what I was expecting per license. When I queried this they emailed me back “It’s **% revenue share after fees, most of the sales came in through affiliates and we had to pay them off before sharing the revenue”. I went back through their emails and their ‘Vendor Manual’ and there is no mention of affiliate fees being subtracted. It just says “You would receive a percentage of the total payments received for the bundle minus PayPal fees”. In fact I had emailed them “So if you sell 2000 bundles for $12 of which 500 choose Hyper Plan, I get **% of $12×500 = $***?” and they replied “Your calculation is correct”. I feel deceived.
  • The low number of licenses sold and the low payout per license means that it wasn’t worth the effort to setup.

I don’t know what Bundlefox are like to deal with as buyer, but I recommend vendors give them a wide berth.

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.

 

 

 

 

 

 

Why you should create a ‘honeypot’ page

Software piracy is a fact of life for vendors of desktop software. Take a look at Google’s helpful suggestions if you search on the name of one of my products:

google

Trying to make your software crack-proof is a fools errand. But one simple thing you can do is create a ‘honeypot’ page to try to convert people searching for a cracked version of your software. If you search for a crack for my software, here is what comes up in first place:

ptp_honeypot_page

Yep, it’s a page on my website. If you click the link you will be taken through to a page explaining the (very real) dangers of downloading cracks and why you should buy a licence. I did some basic on-page SEO to get it to rank for my product name and terms such as ‘crack’, ‘keygen’ and ‘warez’. Then I linked to it from the website sitemap. Nothing clever, but it works. I have averaged a sale per month for the last 10 years from people clicking through onto this page. Given the inadequacies of conversion tracking, the real number of sales could be significantly higher. And it didn’t take long to create the page.

I can’t remember where the idea for a honeypot page came from, but it wasn’t my idea. Feel free to make a version of the page for your own product, but please don’t copy the exact wording. That would be copyright infringement. ;0)

Choosing a market for your software

The efficient market hypothesis states that “asset prices fully reflect all available information”. If the efficient market hypothesis is true, then you would expect actively managed funds (where fund managers pick the stocks) to do no better than index funds. That does seem to be the case:

“Numerous studies have shown that index funds, with their low costs and ability to closely mimic the returns of markets both broad and narrow, steadily outperform the returns of most actively managed funds.” Wall Street Journal

Unless you have some sort of insider knowledge (which it might be illegal to exploit), you might as well invest in index funds or get your cat to pick your stocks as pay someone else to do it.

But I am interested in a different sort of market efficiency. If you have to pick a vertical market to start a software business in, does it matter which vertical market you pick? If the market is perfectly efficient for businesses, then each vertical will have a level of competition proportional to the size of the market. In that case you should have an equal chance of success whether you decide to write a game, a developer tool, an anti-virus product or a CRM system.

From lots of reading and talking to other software business owners I have come to the conclusion that the market is highly inefficient for businesses. The market vertical you pick has a big effect on your chances of success. It seems to me that the three worst verticals are: games, developer tools and consumer mobile apps.

Games are fun! Writing a game sounds like a blast. Much more exciting than writing software for boring businesses. It has also been getting easier to write games due to the ever improving tools. Consequently, the market for games is totally saturated. The outlook for independent games developers looks grim. Today on the Steam platform there are 12,971 games listed. Even some of the big and famous games developers only seem to survive by forcing their staff to work vast amounts of unpaid overtime.

Pretty much every software entrepreneur has considered creating a software development tool at some point. I know I have. It is a market that we all understand (or think we do). But consequently it is saturated. Software developers are also pretty horrible customers. They are used to using lots of free software. And that tool you spent years developing? They think they can write something better over a weekend.

“Thousands of people used RethinkDB, often in business contexts, but most were willing to pay less for the lifetime of usage than the price of a single Starbucks coffee (which is to say, they weren’t willing to pay anything at all). … Developers love building developer tools, often for free. So while there is massive demand, the supply vastly outstrips it. This drives the number of alternatives up, and the prices down to zero.” Why RethinkDB failed

I wrote back in 2010 what a horrible market the iPhone app store is for developers. Since then the number of apps has increased tenfold to 2.2 million, the average paid app price is a measly $1.01 ($0.48 for games) and some 90%+ of apps are free or freemium.

You should be wary of markets with no competition. But the really high levels of competition in these three markets drives down prices and makes it very hard to get noticed. Obviously not everyone in these 3 markets is failing. It is possible to create a product in one of these markets and be wildly successful (Indie game developer Notch of Minecraft fame springs to mind). But I think the odds are very much stacked against you.

So what market should you pick to maximize your chances of commercial success? Aside from the obvious factors (e.g. something you are interested in and knowledgeable about, something that solves a real problem etc) I suggest avoiding anything considered ‘sexy’ by other developers.

Here is a radical idea – create a software product aimed at women. The vast majority of software is written by men and consequently it tends to cater for men. 50% of the world’s population are women and they buy software too!

Just because a product is not in a ‘sexy’ market doesn’t mean that it has to be boring to create. I have found plenty of interesting usability, optimization and visualization problems to solve while developing my own seating planning and visual planning software products.

Here is a thought experiment. Imagine you are talking to another software guy at a conference and explaining what you product does. If your imaginary software guy says “that sounds cool”, then it’s probably a tough market to create a commercial product in. But if they look a bit surprised or their eyes glaze over, then you might be on to something.

Giving a shit

Sturgeon’s law states that “90% of everything is crap”. He was probably an optimist. Here are some recent examples of the sort of crap I come across day to day:

The school selection website

My wife and I had to select which secondary school we want out son to go to, an important decision for our family. We had to do this via a website created on behalf of Swindon council. I won’t bore you with all the painful details, but only an impressive combination of incompetence and apathy could have produced something so egregiously awful. At the end of the process we got an error message and the promised confirmation email never arrived. We were left feeling confused and angry. Every other parent we spoke to had a similar experience.

The ATM

Feast your eyes on my local ATM:

ctnybk8wiaaqkza-jpg-large

Yes, that’s right, the buttons aren’t correctly aligned with the screen, so they have added some shonky visual cues in a feeble attempt to compensate for it. They failed – I have pressed the wrong button more than once. If they couldn’t move the buttons, why didn’t they just change the text positions in the software? I would like to know what sort of horrific set of bad decisions and sloppy planning led to this laughably bad design.

The in-flight meal

Check out this British Airways in-flight meal I was served:

IMG_1083.jpg

Behold, the cutlery is in a sealed plastic bag in the pasta. To get at your cutlery you have to open a slippery plastic bag covered in sauce with your fingers, which are now also covered in sauce. Who could have possibly have thought this was a good experience? You might as well just eat the pasta with your fingers. Or stick your face in the plate. Maybe the subliminal message is: if you won’t pay for business class we are going to make you eat like an animal.


You don’t have to look very hard to find crappy design. Badly designed parking buildings, confusing ticket machines, painful to use Sat Navs, packaging that is almost impossible to open, web forms that won’t let you use a space or a dash in a telephone number. I could go on, but I’m sure you could come up with plenty of examples from your own life. The most frustrating thing is that these issues could have been avoided with a little bit of thought and care. I doubt it would have added more than an extra 1% more effort or cost to get them right.

Crappy products and services make everyone’s life worse. Hold yourself to a higher standard. Take pride in your work. Do usability tests. Get feedback from your users. Fix things that are broken. Keep improving. Above all, give a shit.

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 bitsdujour.com and macupdate.com 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 bundlehunt.com and macupdate.com 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 bitsdujour.com, 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.

sales-revenue-source

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.