Comments on: Choosing how to sell your product or service http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/ High-Availability Guru Mon, 30 Nov 2009 22:42:14 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Alex Williams’ Blog - The start of something great! » Blog Archive » Who needs money? I’m going Open Source! http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/comment-page-1/#comment-2036 Alex Williams’ Blog - The start of something great! » Blog Archive » Who needs money? I’m going Open Source! Thu, 19 Apr 2007 16:01:35 +0000 http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/#comment-2036 [...] their web applications. Scott wrote a great article about offering his software as a service. I started my blog on that note too, but have decided to change direction. As most of the regular readers know, [...] [...] their web applications. Scott wrote a great article about offering his software as a service. I started my blog on that note too, but have decided to change direction. As most of the regular readers know, [...]

]]> By: A Frog in the Valley » Blog Archive » The influence of the selling on the software development process http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/comment-page-1/#comment-77 A Frog in the Valley » Blog Archive » The influence of the selling on the software development process Fri, 02 Feb 2007 14:14:02 +0000 http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/#comment-77 [...] Alex Williams has a post about choosing how to sell your (software) product or service. He outlines three options ; 1. Closed-source hosted application running on my own servers with various subscription plans (i.e. blinksale) 2. Closed-source downloadable self-hosted application with a one-time fee + extra charge for upgrades (i.e: userscape) 3. Open-source extendable & downloadable self-hosted application with a one-time fee + extra charge for upgrades (i.e. mint) [...] [...] Alex Williams has a post about choosing how to sell your (software) product or service. He outlines three options ; 1. Closed-source hosted application running on my own servers with various subscription plans (i.e. blinksale) 2. Closed-source downloadable self-hosted application with a one-time fee + extra charge for upgrades (i.e: userscape) 3. Open-source extendable & downloadable self-hosted application with a one-time fee + extra charge for upgrades (i.e. mint) [...]

]]> By: Sylvain Carle http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/comment-page-1/#comment-76 Sylvain Carle Fri, 02 Feb 2007 13:41:06 +0000 http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/#comment-76 That's a good question to ask up front, how is your product going to be "sold", because each of these completely change the type of companie and the team you need to build and prosper. I did all three options and the pains for each are quite different : 1. Closed source on your server is nice, but you need to have a solid process for planned downtime, upgrades and not skimp on training for customers. When there is a bug, all of your customers have it at the same time! This call for much tighter risk management and strict process. 2. Download and install seems to suggest that it will be easier since your customers "take care of the server". The problem with that is you are in a subtle way drawn in the IT department of all your clients, because it can't be their problem, everything was fine before they installed your software! Insist on dedicated servers with exact specs for underlying tech (ie. not just "linux" but "Red Hat Enterprise 5 with xyz packages"). 3. The third one is my favorite, because open-source often hints at "no support for free, that's how we make money!". Just throwing code on sourceforge does not make an opensource success. You need to have a product manager and a technical lead that are willing to go on the mailing lists, answer questions, to FAQs and public documentation. But in the end, it's a much saner technical process, because bugs come out fast and in pulbic, it's the right amout of pressure to develop a great product... That's a long comment, but it's a really interesting subject to me! That’s a good question to ask up front, how is your product going to be “sold”, because each of these completely change the type of companie and the team you need to build and prosper. I did all three options and the pains for each are quite different :

1. Closed source on your server is nice, but you need to have a solid process for planned downtime, upgrades and not skimp on training for customers. When there is a bug, all of your customers have it at the same time! This call for much tighter risk management and strict process.

2. Download and install seems to suggest that it will be easier since your customers “take care of the server”. The problem with that is you are in a subtle way drawn in the IT department of all your clients, because it can’t be their problem, everything was fine before they installed your software! Insist on dedicated servers with exact specs for underlying tech (ie. not just “linux” but “Red Hat Enterprise 5 with xyz packages”).

3. The third one is my favorite, because open-source often hints at “no support for free, that’s how we make money!”. Just throwing code on sourceforge does not make an opensource success. You need to have a product manager and a technical lead that are willing to go on the mailing lists, answer questions, to FAQs and public documentation. But in the end, it’s a much saner technical process, because bugs come out fast and in pulbic, it’s the right amout of pressure to develop a great product…

That’s a long comment, but it’s a really interesting subject to me!

]]> By: Alex http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/comment-page-1/#comment-10 Alex Fri, 12 Jan 2007 17:03:05 +0000 http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/#comment-10 I agree with Jason that companies being bought recently do not justify their price. Although I am not a marketer and could not explain how a large user-base can be worth any money, especially not $1.65B, there must be another reason behind it. Either way, that business, and many others, were clearly built with the sole intention of being bought by one of the big guys. More power to them! On the other hand, I don't see that as an exit strategy for my software, and if the opportunity does arise, it will be for the technology and the revenue it directly generates, rather than eyeballs, clicks and email addresses. Thanks for your input! I agree with Jason that companies being bought recently do not justify their price. Although I am not a marketer and could not explain how a large user-base can be worth any money, especially not $1.65B, there must be another reason behind it. Either way, that business, and many others, were clearly built with the sole intention of being bought by one of the big guys. More power to them!

On the other hand, I don’t see that as an exit strategy for my software, and if the opportunity does arise, it will be for the technology and the revenue it directly generates, rather than eyeballs, clicks and email addresses.

Thanks for your input!

]]> By: Alex http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/comment-page-1/#comment-9 Alex Fri, 12 Jan 2007 16:57:49 +0000 http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/#comment-9 Hi Nicolas, Thanks for writing. I would definitely be interested in discussing with you regarding future projects and past experiences. I'll e-mail you over the weekend as i've got quite a bit to take care of today (thanks to Ian linking to my site) hahaha. Hi Nicolas,

Thanks for writing. I would definitely be interested in discussing with you regarding future projects and past experiences. I’ll e-mail you over the weekend as i’ve got quite a bit to take care of today (thanks to Ian linking to my site) hahaha.

]]> By: Jason http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/comment-page-1/#comment-8 Jason Fri, 12 Jan 2007 00:08:00 +0000 http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/#comment-8 Internet company that got sold/bought isnt high tech. Google is high tech in the sense they can handle large volumn data, not because of their other technology. Most of the internet companies got sold/bought does not justify their price. Google is very successful now due to people's misbelief and decided to dump google with tons of cash-- enough to excel in pretty much any business. but the return does not justify it's pricing either. But google does bring up an idea, for internet company to charge user, they have to have some essential technology that requires people to use it. otherwise, they need to have some idea to get money indirectly. Internet company that got sold/bought isnt high tech. Google is high tech in the sense they can handle large volumn data, not because of their other technology. Most of the internet companies got sold/bought does not justify their price. Google is very successful now due to people’s misbelief and decided to dump google with tons of cash– enough to excel in pretty much any business. but the return does not justify it’s pricing either.

But google does bring up an idea, for internet company to charge user, they have to have some essential technology that requires people to use it. otherwise, they need to have some idea to get money indirectly.

]]> By: Nicolas http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/comment-page-1/#comment-7 Nicolas Thu, 11 Jan 2007 17:05:58 +0000 http://www.alexwilliams.ca/blog/2007/01/11/choosing-how-to-sell-your-product-or-service/#comment-7 Hello Alex, I live in Montreal like you and I started my mISV last year (for the anecdote, I am also Ian's customer). I have one desktop product running successfully and I was lately thinking to start a web service. Maybe it would be a good idea to discuss about our own experience and who knows maybe more about our upcoming projects. Drop me a mail. cheers, Nicolas Hello Alex,

I live in Montreal like you and I started my mISV last year (for the anecdote, I am also Ian’s customer). I have one desktop product running successfully and I was lately thinking to start a web service. Maybe it would be a good idea to discuss about our own experience and who knows maybe more about our upcoming projects. Drop me a mail.

cheers,
Nicolas

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