Hello DIC,

I was curious if anyone has had experience in attempting to build a small business around the sales of software. I have a degree in C.S. and work at a software engineering firm. I've been given the approval to sell my code I write on my own by my company, so I'm thinking about moving forward. I'd like to get some insight as to how to approach this. I've done my research in terms of the competition in the particular area I am targeting, knowing I can create a better product at a cheaper price. I will soon have an initial version of the software I am engineering, and am now beginning to look at things like company names, websites, legalities, etc. I could really use some input on how to move forward.

I know as of now I don't want this to become my primary source of income, and in fact am primarily diving into it for the learning experience (both coding and running a small business), but I have the vision and ambition to grow it to a much larger scale production if the market is there. I am confident not only the product will exceed the competition, but also the documentation, support, and custom solution opportunities will as well.

Essentially what I'm seeking is where to go from here. What legalities to I need to undertake in order to sell software online? What should I do to protect my source so it is not ripped off? Besides SEO and forums, what are some good advertising opportunities for this line of work? The primary technology will be C# for now, but I'd like to move into the web sphere as time goes on and I become more comfortable with it.

I really appreciate all the help, and if I can answer any other questions I'd be more than happy to do so.

I wouldn't think you'll get alot of answers to this question because much of the DIC members believe that code shouldn't be bought, but shared.

While I didn't build my business around software sales specifically, we did create 1 piece of software. I obtained a copyright from the US Copyright Office, & tried to sell it through computer services, our website, it's own website, & computer shows.

The entire project was a financial loss. However it's something to throw on a resume, or to show to investors.

If you are wanting to sell your software yourself, you will need to learn how to sell. Most people will ruff through whatever free tools they can get rather than spend a dollar. So keep that in mind. Also, any software distributor that I spoke with, wouldn't give me time of day, because they already have contracts for specific software that would clash with ours. No magazine would give us a review, because we didn't already have an established name.

So it doesn't matter how good it is, it's who you are, or more importantly who you are not. The business world seems to be more interested in Web 2.0 & advertisement, than it does with user end software.

Either way, best of luck to you.

Seriously? I hope you aren't actually talking for the majority of people here. Some of still believe that software developers should be paid for their work, which means, someone is paying for code. I'm not ready to commit my life to charity and beg for my supper because my code shouldn't be bought.


That aside, your advertising markets need to be targeted based on the niche your software is for. Some small companies pick up a very small handful of niche clients with large contracts. Most industries have some sort of industry news type communities/forums, so posting there is a good start, as well as contacting and doing a sale bit if you want to go after individual companies. Think about who will be using your software, and more importantly, who will be buying your software, then target places they would go to.

I agree that code can and should be shared. I also put food on the table because sometimes it is worth being paid for. Just because it is intangible does not mean it should be free. If I was writing it for a DIC member then sure, I'd love to share it. However I have a different target market. I think most programmers realize that. Also, I will probably release a "freeware" version of the code, along with a "pro" or "business" suite that I will have for sale with more functionality and configuration options.




I appreciate the post. Since, as of now, this endeavor is merely an application of my hobby, there is little invested besides my free time. This is not my first "business" I've run either, I've chased after investors getting a response from about 1 out of every 10 I contacted. Resiliency, ambition are plentiful in my quest. I am soon going to make a target list of exactly what you've described; who will be willing to pay for something that I create. I also want to formalize exactly what it is I want to highlight that sets myself apart; is it the feature set? The configurability? The support? The ease of use? The price point? I'll have to determine all that before I speak to my first potential client.

I had the idea for my project back in college, but it really was cemented after I needed just such a tool in one of my projects for my company. I did exactly as you mentioned; scoured the internet for a free version. I found bits and pieces of useful things, but I ended up fabricating 90% of what I needed because there was no good free solution. In fact there are only a handful of software companies that have products that would have sufficed.




Thanks for the post Mocker, and the comment on the validity of software sales. I share your views.

I will certainly look into the type of niche communities that would most likely benefit from my software, and find out where they get their resources. I have no qualms whatsoever about contacting companies on a sort of "cold call" just to see what their response will be. I have the benefit of working at a relatively small software company, so I have a good understanding of how we get the software we do (besides writing it ).

Again I appreciate the comments and experiences you all share, they are extremely helpful.

This post has been edited by kdbolt70: 8 Sep, 2008 - 02:12 PM

I am very excited to see people wiling to start new business it is amazing that people have th drive for this. My ??? is what is it your developing and do you mind keeping us informed on how well it turns out.

I'm still not sure I want to let the cat out of the bag in terms of exactly what my project involves, but essentially it is a C# library that enhances and simplifies an application interface. I kind of have some larger goals that my first undertaking moves towards, in which the entire concept of HCI is revolutionized. I also will be looking into the mobile development area, again something I'm aiming for down the road.

I appreciate the support for starting a new business, it will certainly take a lot of work (I'm coding 12+ hours a day!) but the things I'm learning are well worth it. Once I get a demo version out there I'll release it to DIC for some feedback!

Another idea you might want to do is provide a trial version (as I assume what the demo is going to be), and give it either near to full functionality (but with a time limit) and throw it left and right at your clients. Perhaps, even offer the software free, but charge for the support plans and customer service. All depends on your business model and how you want it to work for you. People go for low cost software, but why not get residual income from support plans should people have issues with the system...trust me...there are plenty of stupid people in the world who use their CD drive as a drink holder (i deal with them every day...*bangs head against the wall*).

A tough hurdle I'll have to tackle when the time comes is how to price the product. Since it is a library, and not a standalone system, charging for support may not be the way to go. It also is not aimed at home users whatsoever, it is targeted at businesses. Software businesses in particular, or at least ones that contain software developers that will utilize this library. I may do something like my competitor does, and put out a trial exe that utilizes the library in an application format. Id also like to get out a version to DIC devs who can give it a whirl.

In any case, this is as much of a learning experience for me as it is a business venture, and therefore I don't feel bad about selling it for (potentially) much cheaper than its worth. I guess we'll see how it goes.

You haven't mentioned the type of market for your product. For ideas, try reading the blog of Stephane Hamel, creator of WASP add on for Firefox at Immeria::Immersion in Web Analytics::Stephane Hamel He is active in the Web Analytics Association. His product is often mentioned in the listgroup associated with that application. His most recent blog entry is about how he will charge for professional use of the product.

Hi kdbolt70,
I like your enthusiasm! I can hook you up with someone who can get you some resources like free hosting, and guidance on marketing and so on. Its hard to say how successful this particular product or idea might be, but perhaps you can evolve your ideas into something that's financially worthwhile in time. Please e-mail / PM me.

Veron, I believe your PM's are disabled, as I can't seem to send it to you. Your email is also private. Let me know how to contact you.