Dennis Crane

When “Free” means “More Paid Sales”

A really interesting marketing case was disclosed by Derek Sivers in his post “Emphasize meaning over price = More paid sales“.

In brief:

A band was doing the usual thing of selling CDs for $15. They’d mention it once or twice from the stage, and sell about $300 per night on average.

A consultant asked the band to try a different approach:

1. Say to the audience, “It’s really important to us that you have our CD. We worked so hard on it and are so proud of it, that we want you to have it, no matter what. Pay what you want, but even if you have no money, please take one tonight.”

2. Mention this again before the end of the show, adding, “Please, nobody leave here tonight without getting a copy of our CD. We’ve shared this great show together so it would mean a lot to us if you’d take one.”

It changes the request from a commercial pitch to an emotional connection. (Replace market mindset with social mindset!) Allowing them to get a CD for no money just reinforces that.

The band did this for a while, and soon they were selling about $1200 (+300% increase in sales) per night on average, even including those people who took it for free! The average selling price was about $10.

But the important part came next:

Because every person left each show with a CD, they were more likely to remember who they saw, tell friends about it, listen to it later, and become an even bigger fan afterwards.

Then, when the band came back to a town where they had insisted that everyone take a CD, attendance at those shows doubled! The people that took a CD became long-term fans and brought their friends to future shows.

Think if this approach is applicable in your ISV business.

Being a software vendor is a fantastic job. Meeting interesting people with out-of-the-box vision is one of the most attractive sides of my job.

Balam J. Abello Today, I’m happy to introduce you an interview with Balam J. Abello. Balam is a talented engineer, futurist, writer, and IT consultant with many years of extensive experience in such revolutionary corporations like IBM and American Express. Currently, Balam is researching a concept of Collective Intelligence in a modern society. I convince you to visit his site www.balam.org to read more about Balam’s works and ideas. Let’s speak about how the concept of Collective Intelligence may affect the information technologies.

Balam, could you please explain a key idea of Collective Intelligence concept in several words?
At the crux of CI is the idea that under certain circumstances a “diverse” and preferably large of group people are often more accurate than a single individual; even if this individual is an expert. This is particularly true in the case of complex systems.

In a nutshell, Collective Intelligence uses the aggregate opinions from groups of diverse and independent people to apply it to several types of problems, one of which is the decision making process.

Did this concept exist earlier or it’s a product of the modern technological society?
This concept has existed before. In fact, one could even say that it has been around since the beginning of cellular organisms which is about 3.5 billion years. As a scientific discipline CI became of age in the 20th century. But in the past couple of decades, CI has come into view. This means that a lot of the theoretical postulates have come true on the Internet.

What convinces people to participate in collaborative projects which are mostly non commercial? This is hardly an opportunity to get paid.
Perhaps idea that all human activities should seek financial rewards as its main raison d’être is a distortion from past human history. This perception has reached unprecedented proportions during the past 300 years and especially during that last 50 years with the advent in some cases, of unbridle depredatory capitalism.

Collaboration is at the heart of human behavior. Mathematics, language, music, farming and culture, to name a few, are huge collaborative efforts. Let’s not forget that the Internet is proof positive of daunting and massive collaborative efforts.

This question has been asked a lot in regards not just to CI but more importantly about the Open Source movement. People derive all kinds of altruistic and non-altruistic benefits from collaboration which are not necessarily monetarily driven. Although, this does not preclude that for many people their motives are driven by a monetary reward and this is fine too.
Lastly, I content that as people become more educated, e.g. acquire more knowledge, there will be a tendency to work for the common good which is counter to traditional predatory practices, which in many case have been responsible for the “tragedy of the commons.”
But let me make it clear that I don’t argue against making a profit. After all my IT consultancy practice has a lot to do with this. Additionally, major corporations throughout the world are looking into CI as a means to further their enterprises in an ever more complex world.

You believe in the society that relies on Collective Intelligent, not on leaders, elite or governors. What about moderators, administrators and super users who significantly affect the work of almost any existent collaborative project? Isn’t it the same untrue Democracy?
Let me say that I look forward to a society that relies more onto itself with a lot less blind obedience to a leadership hierarchy. But my position is not black and white which means that I don’t see an absolute necessity of leaderless groups. What I think could or might happen is that these power hierarchies are going to be flatten significantly, thus reducing, but not eliminating the need for “command-and-control.”

It is quite clear that there will continue to exist an ever increasing need for moderators which I prefer to call “mentors” as well as administrators and a great number of other functions too. My thesis is that these “leaders” people should not have extreme power to decide the group’s agenda. These people should act more as consultants to their organizations thus creating a little more separation between self-interests and desired outcomes. If we talk about teamwork we should try, in as much as possible to create an atmosphere where members all are encouraged to have a voice and prevent the group from falling prey to “groupthink.”

However, when it comes to democracy, it is quite apparent that throughout history the will of the people, which is usually less drastic or extreme than that of individuals, is hardly ever really taken into account. Many campaigning politicians pay only “lip-service” to the people during election cycles. As soon as the “leaders” are elected they go ahead and do precisely what they want and this is sometimes the opposite of what the people, who voted for them, wanted in the first place. And, this seems to be a universal phenomenon. So I don’t criticize any given country or institutions for this behavior. Instead I look at it from the “systemic” point of view and realize that if any changes are to take place then these should occur at the “systems” level. In this case, practical approaches toward CI implementations might really help.

Do you believe in Web 3.0? What could it be?

Yes I believe that WEB 3.0 will be a major contributor to change. In fact we are in the middle of implementing WEB 3.0 environments but this will:

  • Take anywhere from 5 to 10 years to implement
  • Will not be readily visible to the standard user
  • Will generated huge benefits bringing a higher order of Artificial Intelligence to the masses.

You could think of WEB 3.0 as the plumbing necessary for the water (intelligent information and knowledge) to flow. In other words, getting most of the billions of web sites to start adding the necessary tags (taxonomies) necessary for computer-programs-and-sites to automatically talk to each other creating the possibility for personalized intelligent avatars or agents, will take some time.

What kind of software applications or IT systems are worth developing while awaiting for Collective Intelligence to get hold?
Now, this is a very difficult question to answer. But my suspicion is that there is a huge universe of possibilities. What is interesting is that as I answer these questions there are probably thousands upon thousands of people experimenting new ideas for such applications. This creative-ecosystem is thriving.

Nevertheless, one trend is for IT applications to be more and more custom oriented versus massively standardized applications. Niche markets seem to be one strong trend.

What will be the main trends in technological and informational progress for humanity?
Once again this is a very difficult question to answer. Personally, I feel that all possibilities are open for expression. I try to think not so much linearly e.g. cause-and-effect when it comes to future trends. This makes any kind of prediction so much more difficult and consequently prone to error.

I will say that I believe that from the information / knowledge point of view, we are creating a “global-super-brain” which is already having profound effects upon all peoples in the planet. Furthermore, I also believe that the future will be extremely transparent. Secrets will tend to disappear on the web. And we see this already happening.

For example, when it comes to political candidacies, with just a few mouse clicks we can find out just about anything about prospective candidates; including such things as their voting records and all kinds of personal information which would allow us, to make informed decisions.

A special final question for our audience: What advantages and techniques of Collective Intelligence concept can be adopted and applied by a one-man shop software vendor (microISV) or by a small software development team?

The increased power of technological tools allows small groups of individuals or even single individuals to achieve great projects. A case in point is the history of Linux. Let’s remember that a single individual created the kernel for Linux and the first thing that he did was to released to the general public for it to do as it pleased and as a byproduct for people to help him fix Linux’s bugs. This was the case of a single individual taking advantage of the “Collective Intelligence” of large numbers of people. The end result has been a whole new multibillion dollar industry.

Therefore, a microISV could organize his or her software project to leverage the power of the people, which in computer science could equate to massive parallelism. Additionally, the techniques of WEB 2.0 collaboration are very well defined and have proven to work successfully. These techniques are also available to the microISV, today.

Thank you, Balam!

I invite everyone to visit Balam’s site www.balam.org to learn how to collaborate for a better World.

Dennis Crane

Going to Write Another E-book?

A professional friend of mine, technical writer Keith Johnson, offered me an opportunity to write a guest post for his excellent Great Documents - technical writing blog. During several chat sessions with Keith we were discussing various questions of collaboration, social networking, information exchange and sharing. This discussion convinced me to summarize my thoughts about e-book writing in a single post. Recently, Keith has kindly published my post in his blog.

Check it out:

Going to Write Another E-book?

… almost everyone finally arrives to the idea of summarizing the whole knowledge on a certain topic in a single document or informational product …

Thanks for the opportunity to share my ideas in your great blog, Keith!

Dennis Crane

Video demo to help sell your product

Sue Pichotta has kindly published my guest post about my experience in making demo video for TBS Cover Editor.

Although I’ve already known that some steps in my process might be more optimal, I honestly described what I did. I hope that this article will be useful for many software vendors and internet marketers who sell products on-line. Check it out!

In the article I listed several ideas for using live demos to promote your software. Here they are:

  • Put it on your website in front of your visitors
  • Upload it to popular video portals like YouTube
  • Include a link to your live demo into your press releases and messages to bloggers, press editors, and prospects
  • Promote your video with social bookmarks like Digg.com, Reddit.com and StumbleUpon.com
  • Show it at off-line events: presentations, conferences, and trade shows
  • Add it to your giveaway promotional stuff on CD or USB flash
  • Put it on view in the reception area of your office

Now, I’ve recalled one more idea how you could use your demo video. If you demo isn’t just an overview of software features but shows how to accomplish a certain task then I recommend to submit it to archives of tutorials. Just search for “submit tutorial” to find appropriate sites.

Putting your live demo in front of thousand people who look for problem solutions on tutorial sites is a good way to increase the visibility of your product.

Feel free to add more ideas of live demo usage in the comments.

If your software was cracked, stolen, patched or keygened then most of warez downloads are likely hosted on RapidShare.com. Try to Google for your product name + rapidshare.com.
If you find links to your software cracks or keygens don’t hesitate to ask RapidShare to remove them. Actually, they react very promptly - usually in 12-24 hours.

Reporting is easy. Just send a e-mail to abuse@rapidshare.com with “Abuse report” subject line.

In the message body use the following pattern:

Hello,

I’m YOUR_NAME, a CEO of YOUR_COMPANY

We are the author of YOUR_PRODUCT software (http://www.YOUR_SITE.com) .

Please remove the pirated (patched and keygened) version of
our product from your server:
http://rapidshare.com/files/….
http://rapidshare.com/files/….
….

Thanks!

Sincerely yours,
YOUR_NAME
YOUR_PHONE
YOUR_CONTACT_DETAILS

This will take just about 15-20 minutes of your time to find and report warez links but the effect in sales, or at least in number of original trial copy downloads, may be significant.

Dennis Crane

Summer 2009 : The company’s news

As I wrote before, we want to keep the ISV Kaizen Blog free from hard selling and don’t write much about our own products except occasional references where appropriate. In every post I try to give some useful information that can help you improve a certain aspect of your own business. Through this blog we aim to build strong and long-term relationships with our colleagues: ISV, software developers, architects and marketers, technical writers, editors and journalists, designers, and other IT professionals.

Nevertheless, every 4-6 months I post a digest of the most important news about our company, Indigo Byte Systems LLC. This allows you to know more about us and to see that the blog’s topics were taken from real practice and experience, not from books or universities only.

So, here it is - the summer news from Indigo Byte Systems.

The Time Limited Special Offer:
Only this summer, the Dr.Explain will help you reinforce your IT business after recession.

Our recent market research proves that many IT companies who have survived in the recent financial recession, nowadays are working hard to release new products by the upcoming Fall 2009 to save their businesses and to get sales back.

They are working on a tight budget and with limited resources trying to cut the development and release costs as much as possible. They gave up bonuses, expensive offices and cars, and even free coffee for developers.
The software documentation is an obligatory part of any IT project and it also cannot be scrapped… but we can help you with it!

To support our colleagues we’ve dropped the price of our best-selling small business bundle “Dr.Explain Advanced License - Office Package” that allows you to install up to 5 copies of the Dr.Explain documentation tool in your company.

If your company deals much with software documentation writing then don’t miss this unique chance to get professional tools for special prices

Joint partner news :
TBS Cover Editor 1.7 released

Our fellow partner, True BoxShot Software, has recently released a new version of its amazing TBS Cover Editor - a full-cycle tool for creating 3D boxshots and virtual cover images from scratch.

What’s New in Version 1.7

Specular highlight
A specular highlight is a bright reflection from a light source and it provides a strong visual cue for the shape of an object and its location with respect to light sources in the scene. Now, in the TBS Cover Editor it is possible to specify the intensity of a specular highlight shining on a 3D object.

Reflection Effect
Now, you can use the new reflection effect for every layer in your design with possibility to adjust the offset of reflection, the opacity, and the length.

Bent 3D Screenshot
It is clearly self explanatory.

Printing the cover
In the new version it is possible to print a designed cover on printer with basic mark ups on edges, thus you can even theoretically make a sort of real software box with scissors and glue.

Download the new version and give it a try!

Make us your friend

If you use social bookmarks or networks then I’ll be happy to join your network. Feel free to add me as a friend on the following networks:

LinkedIn: www.linkedin.com/in/zhuravlev

StumbleUpon: denniscrane.stumbleupon.com
Digg: digg.com/users/cognitiveforce/
Reddit: reddit.com/user/cognitive/
Delicious: del.icio.us/cognitive

If you use Dr.Explain software, please add it to your social bookmarks. Thank you!

Have a good summer!

A pretty common question on software development forums:

Should I release my new product in July or postpone it for a couple of months?

I recommend to release your new software product as soon as possible to quickly test the product idea and to start communication with users.

July is a good time for pilot release also. Just make it soft and relatively silent. Don’t put much money in promotion and marketing. Your primary goal must be gathering as much feedback from users as possible. Put all your efforts into testing of all aspects of your new project in live environment: application, setup, website, order process, statistics collecting, support, feature request management, etc…

If you start now, you will have enough time to collect and to analyze initial feedback and to polish everything before majority of businesses gets back to work. Then make a second release in August or September. The second version will be more stable and tested, and likely even with several new features. Then, you may put more efforts and money into marketing and promotion of your product: post announcements, send press release to media, buy ad, and so on.

Nowadays, the Twitter gets very popular. Frankly, the marketing value of Twitter is still doubtful for me so I have no personal account. Nevertheless, Twitter helps me to monitor what people tell about our products and in what context our product names are mentioned.

You can do the same and that’s pretty easy. Simply add a customized twitter search feed into your blog reader. The feed URL must look like:

http://search.twitter.com/search.atom?q=google+chrome

Put your product name or other target keywords into the query string and forget about it! Each time somebody mentions your product on Twitter you will be alerted and will see that post right in your blog reader. No extra efforts required.

P.S. That’s also useful for tracking cracked versions of your software appeared on the Web because pirates also use Twitter and usually announce their “victories” there too.

Scott, an ISV-entrepreneur, on BoS forum has recently complained that since their company had reached a new level of technical documentation the number of service requests grew up.

That’s an interesting effect!

Scott wrote:

Two reasons for this, based on feedback from customers seeking support:

1. Documentation is now so comprehensive that it is intimidating. People see a 1000 page manual and say “no thanks - I’ll just call customer support instead.”

2. Documentation has so much cool stuff described, that it makes people’s imagination stimulated and they start thinking of other, even more exotic stuff they want to do but can not figure out and start a service request for it.

Thus, the common solution to service requests - better documentation - actually causes more service requests, not fewer.

Is this really true and good documentation will harm to your business?

I think that only a big number of pages doesn’t mean that the manual is good. In documentation, users look for problem solutions. The more important thing than the number of pages is the structure of the manual and simplicity of search mechanisms (indexes, built-in troubleshooters, context help, etc. ).

Recently, we needed a presentational video for an affiliated service that allows health conscious people to track their diabetes, blood pressure, or body weight records and to share the results.

The main difficulty of the project was a voice-over for the video. We needed a clear, calm and native English speech but there are no native English speaking members in our team.

The two services helped us in this matter.

EditAvenue.com is a proofreading and editing service marketplace that helped us to proofread the draft of the written script for the voice-over.

If you are non-native English speaker then through EditAvenue you can access hundreds of professional editors who can correct and refine your written communication. The prices start from about $4 per page (300 words). A relatively small task may be accomplished likely in the same or next day even if you don’t pay for express delivery service.

Once we’ve received the edited script we started to look for a talent to record a voice-over for our demo. That was a problem until I spotted a link and recommendation for Voices.com on JoS boards. That’s was amazingly helpful service!

Voices.com is another marketplace where you can hire a voice artist for almost any type of job - from commercials and presentations, to cartoons and audio books. For presentations, the rates are about $300 per 5 minutes of speech.

After we had posted a job description we received about a hundred of responses with sample records in several hours. We selected a talent, made the deposit and received the final audio files by the end of the day. That was really, really cool.

I highly recommend the above services to everyone who needs to create impressive presentations for his\her products.

Here you can see the final video with the voice-over.

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