

How software can be resilient to recession - nickb
http://www.cloudave.com/link/How-Software-Can-Be-Resilient-to-Recession-22-9-2008

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13ren
I thought this was interesting: pricing yourself under the approval threshold
gets you _in_ ; and from there you are known, and have a base to reach up
above the approval level.

My experience is that Economic Buyers find a good deal irresistible (e.g.
cheaper to buy in bulk). It's one of the strengths of a well-heeled company,
so they like to use it (and should).

They could even walk up the price list for you... this would be easier once
the value of the product/service has been verified by the initial usage "under
the radar".

I've organized my terms so they rarely need to upgrade (so I haven't actually
had this happen) - but I really, really should. Lower entry level + repeat
sales has got to be a winner.

~~~
DanielBMarkham
I liked this idea too.

Key Question: how to connect to users and make the initial sale? Many times
users are prevented from making purchases like this -- at least on paper.

~~~
13ren
How to get sales in the first place? Assuming I'm understanding you correctly,
that's the whole business problem, isn't it? It's (1). meeting a need (product
for a market); (2). people knowing about it (publicity).

I won't theorize or exposit further, just give my own experience.

Mine was a product for programmers: I focused on creating a product that
solved a problem that was frustrating and easy to solve. I began with the
absolute minimum step towards that, set up a webpage, and released it on
freshmeat. I used a dual license, meaning it was open source, but in some
cases I could charge for it. I was prepared for there to be no interest, but
there was _some_ interest (500 people looked at it, and _1_ emailed me).

Thus encouraged, I continued, adding features, and releasing each one as a new
version.

A strange thing happened as I continued on this path - I saw a really cool way
to do something that I had not even imagined before. I knew the components,
but just didn't see the connection - maybe no else did... certainly, no one
else acted on it. Seeing new things is not a matter of genius; it's a matter
of _being there_ \- at the vantage point where it is visible. The other part
is, having seen it, to _actually do it_. This is really what made it worth
paying for, for my very first sale.

Simultaneous with all this, I was fascinated by the idea of a "pitch", trying
to succinctly capture: the essence of the idea; the benefit to customers; and
the advantages over alternatives. I constantly rewrote this - typically,
weekly.

Summary: solved a frustrating problem with a neat solution that was constantly
publicised via releases. Had a cool pitch, that was exciting and easy to
grasp, and short enough to pass on to others by word of mouth. Kept working on
the product regularly for a year before the first sale (it's reassuring for
customers to see ongoing activity; and inspiring for technical users to see
constant improvement).

So, _How to connect to users and make the initial sale?_ Users knew about it,
wanted to buy it, so they found a way to buy it. My initial customer had
management that understood and appreciated the technology (and taught me a lot
about it, in fact).

They sometimes needed permission, but _only one level up_ (their immediate
management). Sometimes permission would take 3 months. That was awful. Oh, and
dealing with lawyers was awful (even though I respect lawyering, I didn't
enjoy the experience). I also experimented with prices as I went along, and
they ended up being 10 times what I started with (from $500 to $6,000 USD for
top end)... thus moving higher up the management chain for "permission".

------
MicahWedemeyer
Best idea in the article: _charge for it – companies actually prefer to pay
for reliable, good service._

This is a no-brainer in the enterprise world, but continues to be avoided on
the consumer side. Depending on ads to make you millions is a dangerous way to
go. Building something that people are willing to pay for is a more tried-and-
true method that has worked for thousands of years.

