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Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Esther Schindler [EXEC], 72241,1417Monday, January 01, 1996 4:08:05 PM
From: Chip Holland, 70514,41 #69882
>At least *I*'m glad you're here, and I'm the one holding the electronic brownies. (Here, have one.)
Oooh, Double-Fudge with walnuts! My favorite!
> What sort of cool OS/2 software are you going to do?
I'm writing some shareware for the home: track the kid's orthodontist appointments, etc.
I've concluded that the real reason Windows caught on was the ability for entepreneurs to easily
write code & sell it. I don't feel that Windows had a "killer-app", like Visicalc for the Apple ][ was.
Rather, it was a large number of people writing software that was usable in an everyday sort of
fashion.
One of the things I'd like to accomplish in the design of my apps is to make them more
"Windows"-like. Before the Spanish Inquisition takes me away for even *thinking* this, I'd like to
clarify the statement by saying that I find many of the applications written by IBM & other large
corporations to be hard-to-use because the User-Interface guidlines were enforced too rigidly. One
of the things the Windows market has done is break the design rules when it would result in a more
usable & sellable product.
Chip H.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Chip Holland, 70514,41 Monday, January 01, 1996 11:45:09 PM
From: Esther Schindler [EXEC], 72241,1417#69903
I call those walnut brownies "cub scouts"... brownies with nuts, you see.
The shareware you're planning sounds excellent; there's a definite market opportunity here. Of
course, you'll have to think about how you can best reach those home users, and especially what
you'll need to do to encourage them to register.
--Esther
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Esther Schindler [EXEC], 72241,1417Tuesday, January 02, 1996 11:03:15 AM
From: Jon Duringer[IdeaFa, 71732,3361 #69931
>> how you can best reach those home users, and especially what you'll need to do to encourage
them to register.
One example of how to get the attention of home users is to follow the example of file IF_TIMER.ZIP,
in GO OS2SHARE, which is priced at 79 cents and requires no registration. (You just d/l it and start
using it.)
(Esther, I just couldn't resist.)
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Tuesday, January 02, 1996 12:40:04 PM
From: Esther Schindler [EXEC], 72241,1417#69955
Yes Jon, I know.
But that actually doesn't get the attention of home users in the least. The biggest problem for any
software vendor (no matter what the distribution/payment method) is ensuring that the prospective
buyer *finds out it exists.* And then *discovers that he needs it.*
The cheap "try it" method helps with the latter, not with the former. And even so, you discount the
value of people's time. I literally have piles of software that's sent to me free (since I review the stuff)
that I never get around to installing, much less testing. The software has to get my notice; I have to
pre-load my mind with the viewpoint that "this is valuable" or "this is interesting" before I'll tear off the
shrinkwrap.
--Esther
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Esther Schindler [EXEC], 72241,1417Tuesday, January 02, 1996 2:36:04 PM
From: Jon Duringer[IdeaFa, 71732,3361 #69971
>> ensuring that the prospective buyer *finds out it exists.* ..[meterware doesn't help with that]
Moore, p. 29: "Every [marketing] program must rely on... chain-reaction effects... word-of-mouth..."
Esther, meterware is designed to -nuke- all of the obstacles to the word-of-mouth chain reaction
effects that Moore says are the key to dynamic marketing. With meterware, everyone has free
access to the latest version and can freely pass it around to friends. This is because one pays for
usage, not for the software. The software itself is free.
By eliminating virtually all of the hassles related to distributing (for the seller) and obtaining (for the
user), meterware will cause software prices to fall drastically. I expect that the typical 30 $US
shareware product will sell for less than 1 $US as meterware. This is because most of the
transactions costs have been eliminated.
Because meterware is freely passed around, and because it's price will be very low, meterware
products will be like greased pigs; the ones that people like will end up everywhere.
>> I have to pre-load my mind with the viewpoint that "this is valuable" or "this is interesting" before I'll
tear off the shrinkwrap.
The high transactions costs of shareware and shrinkware result in vendors competing by adding
bells and whistles. In a meterware market, where transactions costs are nearly zero, you will see
many more quick and dirty products that get the job done and are simple. Also, meterware
encourages a "divide and conquer" approach that involves offering parts rather than monolithic
applications.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Tuesday, January 02, 1996 7:39:27 PM
From: Esther Schindler [EXEC], 72241,1417#70010
Jon,
I respectfully suggest that you're engaging in wishful thinking again.
The concept behind Ideafarm does have some merit -- enough so that I do hope it gets field tested
in the marketplace. I think it would be more successful in the components business (ie OpenDoc)
than in standalone software, but that's a subject best discussed in your home forum, not here.
However, look again at the definition of marketing. Your method of payment does NOT affect
"creating want" among your (or any developers') prospective customers. Any businessperson can
tell you that word of mouth is the most powerful marketing method, but it's something that FOLLOWS
your other methods, not leads it. You have to have customers to get customers... that's a good part of
the Catch 22 that Moore tries to impart.
I might be able to freely pass software around to my friends, but that doesn't mean I want to or that I
need to. My friend runs a company that makes packaging and crates; he and I don't need the same
sort of software. If I want to choose the best software for MY needs, I might appreciate the ability to
compare several products, but *I still have to find out that they exist.* That's the role of advertising, of
distribution (look for it on the shelf), at media relations. Ideafarm doesn't affect those at all.
--Esther
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Esther Schindler [EXEC], 72241,1417Wednesday, January 03, 1996 11:31:24 AM
From: Jon Duringer[IdeaFa, 71732,3361 #70066
>> I might be able to freely pass [meterware] around to my friends, but that doesn't mean I want to or
that I need to.
Yes, I agree that releasing a product as meterware does not eliminate the need for a marketing
program. Your example illustrates the fact that being neighbors isn't enough; you are not in the same
market because you do not reference each other.
Perhaps the basic function of a marketing program is to provide coherence to the referencing chain
reaction so that it will explode rather than peter out.
>> advertising, distribution (look for it on the shelf), media relations. [Meterware] doesn't affect those
at all.
Consider advertising. The need for advertising isn't eliminated, but the nature of the ad is changed
fundamentally. For shareware and shrinkware, the message is, "Purchase Me!". for meterware, the
message is, "Start Using Me!". The goal of a shrinkware or shareware marketing program is
SALES. The goal of meterware marketing program is USAGE. This is a fundamental change.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Wednesday, January 03, 1996 3:50:22 PM
From: Esther Schindler [EXEC], 72241,1417#70097
> the nature of the ad is changed fundamentally. For shareware and
> shrinkware, the message is, "Purchase Me!". for meterware, the
> message is, "Start Using Me!". The goal of a shrinkware or
> shareware marketing program is SALES. The goal of meterware
> marketing program is USAGE. This is a fundamental change.
Okay, maybe I'll grant you that. (And maybe I've been worn down.)
Now: how are you going to get from here to there? Making promises to developers won't do it. You're
telling them to change their entire way of doing things. What clear return on investment can you offer
that's worth their making such a major change? (Ie how will this let them make more money?)
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Esther Schindler [EXEC], 72241,1417Wednesday, January 03, 1996 4:27:04 PM
From: Jon Duringer[IdeaFa, 71732,3361 #70102
>> Now: how are you going to get from here to there? Making promises to developers won't do it.
If someone says, "What is meterware?", I will ask them to download the IdeaFarm (tm) Time Tracker,
install it, and start using it. The marketing program for 1995 focused on the meterware concept. IFO
marketing for 1996 will focus on getting people to use Time Tracker and whatever other meterware
products are uploaded. Anyone who uses Time Tracker for a week will understand what meterware
is. Once the user has ordered a refill, she will have seen the whole process from beginning to end.
IOW, the focus will shift from concepts to products, and from SALES (the old way of thinking) to
USAGE (the new way of thinking).
>> You're telling them to change their entire way of doing things.
IFO marketing for 1996 will return to a focus on forming a meterware community of innovators. These
innovators will be users and computer programmers who are not currently shareware vendors. The
motivation will be a desire to be personally involved with the launch of meterware. We will not rely on
asking shareware vendors to risk established products on this unproven distribution method.
Instead, we will look for computer programmers who just want to write a simple product in a weekend
or two and then upload it as meterware to see what happens.
In Moore's terms, shareware authors with successful titles are in the "late majority" category. Recent
IFO marketing that targets them has been premature.
Esther, this book discussion has already resulted in several concrete changes within IdeaFarm
Operations. Thank you getting this started and for serving as moderator.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Thursday, January 04, 1996 9:31:20 AM
From: Esther Schindler [EXEC], 72241,1417#70160
> If someone says, "What is meterware?", I will ask them to download
> the IdeaFarm (tm) Time Tracker, install it, and start using it.
Wrong answer.
If I ask, "What is chocolate?" I don't want to be told to go out and acquire some. I want an answer to
my question -- and it's to your benefit to give me an answer that makes me WANT to go out and
download, install, start using.
I think you need to create several small examples of useful utilities or small applications
(YOURSELF) that use Meterware, or the only people who are going to "get" the concept are those
who can imagine. A lot of programmers cannot, and fewer of their bosses can. Besides, if you have a
small but successful application (say, an incredibly basic expense reporting program) then *users*
will get the concept and you can start your own minor empire. Not to mention having a few pennies
coming in to help with expenses.
--Esther
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Esther Schindler [EXEC], 72241,1417Thursday, January 04, 1996 10:26:04 AM
From: Roger Loeb, 74666,355 #70161
> If I ask, "What is chocolate?" I don't want to be told to go out
> and acquire some. I want an answer to my question -- and it's to
> your benefit to give me an answer that makes me WANT to go out and
> download, install, start using.
A great example of this has been "groupware." Before Lotus Notes there were several
"teleconferencing" products. These were more like time-sharing then network applications, but they
did the same kind of "threaded" messaging (similar to what Compuserve looks like now). A few of
these enjoyed great success in limited applications, e.g., new product development, but this was a
product that was almost impossible to sell because no one could describe it.
This is still true for Notes, even though it's gotten a lot of "press." Prospective customers who have
never used Notes have a terrible time understanding why they care. People who have used Notes
can't live without it and wonder why the rest of the world is so dense.
So, how do you describe chocolate? <grin>
Rog (lurker)
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Roger Loeb, 74666,355 Thursday, January 04, 1996 7:55:17 PM
From: Esther Schindler [EXEC], 72241,1417#70246
Yes, I think groupware is another example of "you say I want it... but what is it?" I think Notes' success
was only possible because Lotus had enough credibility to push it through, early on... and the fact
that they charged $70,000 minimum didn't hurt either.
How do I describe chocolate? Hmm, who's my listener? The answer would be very different based
on the target market.
--Esther
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Esther Schindler [EXEC], 72241,1417Friday, January 05, 1996 10:44:01 AM
From: Roger Loeb, 74666,355 #70297
> How do I describe chocolate? Hmm, who's my listener? The answer
> would be very different based on the target market.
Well, think of your target chocolate market like a target groupware market. "I just know you want this,
but I'm not really sure what it's going to do for you. What do you need improved in your business
(life)?"
I've seen you wax poetic about chocolate, why do you need a target market? (Hmm, isn't that what
Moore says about techies?)
Rog
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Roger Loeb, 74666,355 Friday, January 05, 1996 12:41:17 PM
From: Esther Schindler [EXEC], 72241,1417#70317
It's very weird to use chocolate as an example here, but perhaps it'll work.
I'm a chocolate advocate. I believe in the chocolate "technology," that it will benefit nearly everyone
who experiences it. So why do I need to be conscious of my market?
Because there are people at every point on the bell curve, and if I want to sell chocolate to every
one of them I have to give them a message that they will hear. If someone has never tasted
chocolate, I have to tell him that it's delicious and irresistible ("You can't eat just one!"). If she's tasted
chocolate but wasn't convinced of its obvious worth, I have to sell him on the value of it ("Oh, you just
had M&Ms. Try this Godiva!"). To an expert, I have to sell the quality ("best for making truffles") or
maybe the price ("good quality that you can afford"). I must give the RIGHT message to the RIGHT
audience. The wrong message will be wholly ineffective.
That means I have to understand my audience, and I have to know what matters most to them. It's
WAY too easy for early adopters to assume that the things that matter to them, matter to anybody
else. (That's one reason I teach beginner classes... it helps to keep me honest.)
--Esther
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Thursday, January 04, 1996 9:31:20 AM
From: Esther Schindler [EXEC], 72241,1417#70160
> If someone says, "What is meterware?", I will ask them to download
> the IdeaFarm (tm) Time Tracker, install it, and start using it.
Wrong answer.
If I ask, "What is chocolate?" I don't want to be told to go out and acquire some. I want an answer to
my question -- and it's to your benefit to give me an answer that makes me WANT to go out and
download, install, start using.
I think you need to create several small examples of useful utilities or small applications
(YOURSELF) that use Meterware, or the only people who are going to "get" the concept are those
who can imagine. A lot of programmers cannot, and fewer of their bosses can. Besides, if you have a
small but successful application (say, an incredibly basic expense reporting program) then *users*
will get the concept and you can start your own minor empire. Not to mention having a few pennies
coming in to help with expenses.
--Esther
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Esther Schindler [EXEC], 72241,1417Thursday, January 04, 1996 10:56:25 AM
From: Jon Duringer[IdeaFa, 71732,3361 #70165
>> If I ask, "What is chocolate?" I don't want to be told to go out and acquire some.
As a general principle, I agree. But my experience with meterware, and also with introducing a new
concept within my field of mathematical economics, leads me to really believe that "a picture is worth
a thousand words". Take a person, Cheri, who has -never- encountered chocolate, and consider
two scenarios. In the first, Cheri asks, "What is chocolate?", and is told, "Chocolate is a food that
tastes sweet." In the second scenario, Cheri is simply handed a big bar of pure chocolate and
invited to take a bite.
If you were Cheri, which answer would you find more informative?
>> it's to your benefit to give me an answer that makes me WANT to go out and download, install,
start using.
The only practical reason, at this point, for installing the meter is that you want to use IdeaFarm (tm)
Time Tracker. Do you want to know where you spend your time? Would you like to acquire this
capability for 79 cents plus the 10 minutes that it will take to install Time Tracker? If the answer is yes,
then you have a reason to get the meter.
>> I think you need to create several small examples of useful utilities or small applications
(YOURSELF) that use Meterware
That's exactly why Time Tracker was uploaded last weekend. Terry is going to focus on getting the
innovators among us involved. I'm going to focus on an OS/2 software development assignment
that I've received, and when I can, I'll upload meterware products which are either illustrative or really
useful.
>> if you have a small but successful application (say, an incredibly basic expense reporting
program)
Are there any programmers in the house? I'm fully committed and can't jump onto this product idea.
Why not take next weekend and craft an "incredibly basic expense reporting program"? Get the
program written, and I'll put the metering call into your code for you. Then you can price it at, say, 79
cents, upload it, and we'll all watch to see what happens.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Thursday, January 04, 1996 1:12:02 PM
From: Guy Scharf [Sysop], 76702,557 #70198
Jon,
> Take a person, Cheri, who has -never- encountered chocolate, and
> consider two scenarios. In the first, Cheri asks, "What is
> chocolate?", and is told, "Chocolate is a food that tastes sweet."
> In the second scenario, Cheri is simply handed a big bar of pure
> chocolate and invited to take a bite.
But you are NOT doing this. Instead, you are telling your prospect to go to the store and buy their
own copy to see what it is. In this case, "buy" = take the time to download IdeaFarm AND Tracker,
install them both -- a slow process -- and then run them, hoping they have no technical support
problems.
Techical support issues for trying a bar of chocolate are rare. <g>
You suggestion someone write a program that they will charge 79 cents for? Get serious! <ROF,L>
Guy
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Guy Scharf [Sysop], 76702,557 Thursday, January 04, 1996 3:16:21 PM
From: Jon Duringer[IdeaFa, 71732,3361 #70209
>> you are telling your prospect to go to the store and buy their own copy to see what it is. In this
case, "buy" = take the time to download IdeaFarm AND Tracker, install them both -- a slow process
-- and then run them, hoping they have no technical support problems.
Yes, it -is- a PITA to install Meterware Services for OS/2 just to be able to use Time Tracker. But
once there are 10 meterware titles, taking the time to install the meter will make more sense. Right
now, only the innovators will want to get involved. I.e., people who mostly want to see how it all works
together, from beginning to end. These people will order refills in amounts like 35 cents, and I will
happily fill those orders. Time Tracker is just the excuse; most of us are going to be involved just to
see meterware in action, to touch it, feel it, have it on -our- computers.
BTW, I'm using Time Tracker to keep track of the time that I spend on a software development
contract, on meterware development, on marketing, and on tools maintenance. My initial impression
is that it is more than a toy; it looks like it is easy to use and it appears to get the job done. Priced at
79 cents, it might make sense for the general OS/2 user who does not currently use a more
sophisticated (and complicated) time management tool.
>> You suggestion someone write a program that they will charge 79 cents for? Get serious!
<ROF,L>
While you are rolling on the floor, consider the numbers. The five most popular files in OS2SHARE
are each downloaded an average of 10 times per day, 7 days per week. That is about 3500 d/l's
per year. Now, these products are priced about 30 $US, and many downloads do not result in sales.
But let's assume that Time Tracker turns out to do the basic job well and that, at 79 cents, is adopted
by 3500 people per year. That translates into a hassle free annual gross income of more than 1900
$US for the author (me). That's not going to make me rich, but I'd say it's a nice return on 12 hours of
work.
I'm quite serious about pricing my own meterware below a dollar. The user response could be
tremendous.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Thursday, January 04, 1996 4:56:10 PM
From: Guy Scharf [Sysop], 76702,557 #70219
Jon,
But we're back to the issue of being able to tell someone about a product versus telling them to go
out and go to an effort to know what it is. You do not appear to have addressed that marketing issue.
Guy
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Guy Scharf [Sysop], 76702,557 Thursday, January 04, 1996 5:27:31 PM
From: Jon Duringer[IdeaFa, 71732,3361 #70221
>> But we're back to the issue of being able to tell someone about a product versus telling them to
go out and go to an effort to know what it is. You do not appear to have addressed that marketing
issue.
There will be no marketing program for IdeaFarm (tm) Meterware Services for OS/2. Instead, IFO will
put together a marketing program that tells innovators about the individual meterware titles, such as
Time Tracker, that are available. A simple ad will be placed in the BAUG newsletter and in other
newsletters and OS/2 mags. The ad will list up to 10 titles and give the price and a one line
description of each. The objective of the ad will be to get the reader to GO OS2SHARE and browse
the file description. It will then be up to the file description to get the reader to d/l the file. Then it will
be up to the readme file to get the user to install it and start using it.
That's the plan. Now all we need is some meterware.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Guy Scharf [Sysop], 76702,557 Thursday, January 04, 1996 3:16:21 PM
From: Jon Duringer[IdeaFa, 71732,3361 #70209
>> you are telling your prospect to go to the store and buy their own copy to see what it is. In this
case, "buy" = take the time to download IdeaFarm AND Tracker, install them both -- a slow process
-- and then run them, hoping they have no technical support problems.
Yes, it -is- a PITA to install Meterware Services for OS/2 just to be able to use Time Tracker. But
once there are 10 meterware titles, taking the time to install the meter will make more sense. Right
now, only the innovators will want to get involved. I.e., people who mostly want to see how it all works
together, from beginning to end. These people will order refills in amounts like 35 cents, and I will
happily fill those orders. Time Tracker is just the excuse; most of us are going to be involved just to
see meterware in action, to touch it, feel it, have it on -our- computers.
BTW, I'm using Time Tracker to keep track of the time that I spend on a software development
contract, on meterware development, on marketing, and on tools maintenance. My initial impression
is that it is more than a toy; it looks like it is easy to use and it appears to get the job done. Priced at
79 cents, it might make sense for the general OS/2 user who does not currently use a more
sophisticated (and complicated) time management tool.
>> You suggestion someone write a program that they will charge 79 cents for? Get serious!
<ROF,L>
While you are rolling on the floor, consider the numbers. The five most popular files in OS2SHARE
are each downloaded an average of 10 times per day, 7 days per week. That is about 3500 d/l's
per year. Now, these products are priced about 30 $US, and many downloads do not result in sales.
But let's assume that Time Tracker turns out to do the basic job well and that, at 79 cents, is adopted
by 3500 people per year. That translates into a hassle free annual gross income of more than 1900
$US for the author (me). That's not going to make me rich, but I'd say it's a nice return on 12 hours of
work.
I'm quite serious about pricing my own meterware below a dollar. The user response could be
tremendous.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Thursday, January 04, 1996 7:29:05 PM
From: Buck Bohac, 70670,2352 #70239
Hi Jon,
Devil's advocate here.
> That is about 3500 d/l's per year. Now, these products are priced
> about 30 $US, and many downloads do not result in sales. But
> let's assume that Time Tracker turns out to do the basic job well
> and that, at 79 cents, is adopted by 3500 people per year. That
> translates into a hassle free annual gross income of more than
> 1900 $US for the author (me). That's not going to make me rich,
> but I'd say it's a nice return on 12 hours of work.
I don't really have any idea what the actual registration percentage is, but assuming 2% which is
pretty standard for direct mail response, and at $30 US per registration, that comes to $2100 US.
Explain to me again what the advantage is to making my product a meterware product. I'm listening
but I haven't seen the light yet.
Buck
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Buck Bohac, 70670,2352 Thursday, January 04, 1996 8:37:03 PM
From: Jon Duringer[IdeaFa, 71732,3361 #70252
>> at $30 US per registration, that comes to $2100 US.
Using your numbers, we estimate that each of top five shareware titles in OS2SHARE are earning
$2100 / year for their authors. This is comparable to the $1900 / year estimated income to the author
from a meterware product priced at 79 cents. So the idea that one can make money at a price point
below 1 dollar is not preposterous. Using plausible numbers, I could easily earn as much from Time
Tracker, priced at 79 cents, as the top shareware authors in OS2SHARE earn. Pretty good, for 12
hours of pleasant work.
>> Explain to me again what the advantage is to making my product a meterware product.
Let's assume that you are a computer programmer and that you have written a program that could
be used by a general OS/2 user. Let's assume that you are not familiar with the business side of
software. You don't have any marketing contacts. You aren't a member of ASP, you aren't familiar
with how to receive payments from customers in Australia, you've never considered how to add
nagging, drop dead dates, or crippling so that people will register, and you don't know the first thing
about how to get your product listed in Indelible Blue or carried on the shelves of EggHead. IOW,
you're just a normal Patty Programmer with a salaried day job and a program that you would like to
turn into a product.
For Patty Programmer, one advantage of meterware is that it is by far the easiest way to take a
program and make it into a product. Meterware eliminates almost all of the distribution hassle for
both the programmer and the user.
There are other advantages. Releasing a program as meterware rather than as registerable
shareware might result in greater gross income, even if the same price is set. This is because, with
meterware, the user never makes a purchase decision. She just makes a "use" decision. As she
uses the product, the purchase price is gradually and effortlessly collected.
To bring us back to our current topic (software priced below a dollar), meterware makes possible, for
the first time, mass distribution of software that is priced below a dollar. It is possible because almost
all transactions costs have been eliminated. Who knows how elastic the demand for software is? I'd
rather have 100,000 users each paying 79 cents than a 1000 users paying 30 dollars.
Leaving the programmer for a moment, let's note here that such a price phenomenon would be a
tremendous boon to both OS/2 users and OS/2 itself.
Finally, meterware is the only practical distribution method for "parts" and "components". For an
example of a part, see USEDELTA.CMD in GO OS2SHARE. That command file calls a function in
one of the Meterware Services API's. Each function in that API, which can be used by other
programs as well as by end users, is priced at 79 cents.
Buck, this is a major undertaking. Terry and I need you and the other leaders of the software industry
to take an interest in the launch of a meterware community. I want you to be involved. Will you join
us?
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Friday, January 05, 1996 8:50:22 AM
From: Esther Schindler [EXEC], 72241,1417#70288
Using Buck's numbers, the *average* shareware title in OS2SHARE would be bringing in $2100 a
year. Not the top ones.
The top ones are doing much better because the product is good, they market, the product is good,
they make it easily available, the product is good, it has excellent word of mouth, the product is
good.
--Esther
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Esther Schindler [EXEC], 72241,1417Friday, January 05, 1996 1:12:03 PM
From: Jon Duringer[IdeaFa, 71732,3361 #70319
>> the product is good
Are you saying that product quality is important, Esther? You're posting wasn't very clear.
<smile>
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Buck Bohac, 70670,2352 Thursday, January 04, 1996 8:37:03 PM
From: Jon Duringer[IdeaFa, 71732,3361 #70252
>> at $30 US per registration, that comes to $2100 US.
Using your numbers, we estimate that each of top five shareware titles in OS2SHARE are earning
$2100 / year for their authors. This is comparable to the $1900 / year estimated income to the author
from a meterware product priced at 79 cents. So the idea that one can make money at a price point
below 1 dollar is not preposterous. Using plausible numbers, I could easily earn as much from Time
Tracker, priced at 79 cents, as the top shareware authors in OS2SHARE earn. Pretty good, for 12
hours of pleasant work.
>> Explain to me again what the advantage is to making my product a meterware product.
Let's assume that you are a computer programmer and that you have written a program that could
be used by a general OS/2 user. Let's assume that you are not familiar with the business side of
software. You don't have any marketing contacts. You aren't a member of ASP, you aren't familiar
with how to receive payments from customers in Australia, you've never considered how to add
nagging, drop dead dates, or crippling so that people will register, and you don't know the first thing
about how to get your product listed in Indelible Blue or carried on the shelves of EggHead. IOW,
you're just a normal Patty Programmer with a salaried day job and a program that you would like to
turn into a product.
For Patty Programmer, one advantage of meterware is that it is by far the easiest way to take a
program and make it into a product. Meterware eliminates almost all of the distribution hassle for
both the programmer and the user.
There are other advantages. Releasing a program as meterware rather than as registerable
shareware might result in greater gross income, even if the same price is set. This is because, with
meterware, the user never makes a purchase decision. She just makes a "use" decision. As she
uses the product, the purchase price is gradually and effortlessly collected.
To bring us back to our current topic (software priced below a dollar), meterware makes possible, for
the first time, mass distribution of software that is priced below a dollar. It is possible because almost
all transactions costs have been eliminated. Who knows how elastic the demand for software is? I'd
rather have 100,000 users each paying 79 cents than a 1000 users paying 30 dollars.
Leaving the programmer for a moment, let's note here that such a price phenomenon would be a
tremendous boon to both OS/2 users and OS/2 itself.
Finally, meterware is the only practical distribution method for "parts" and "components". For an
example of a part, see USEDELTA.CMD in GO OS2SHARE. That command file calls a function in
one of the Meterware Services API's. Each function in that API, which can be used by other
programs as well as by end users, is priced at 79 cents.
Buck, this is a major undertaking. Terry and I need you and the other leaders of the software industry
to take an interest in the launch of a meterware community. I want you to be involved. Will you join
us?
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Friday, January 05, 1996 11:58:29 AM
From: Roger Loeb, 74666,355 #70313
I think you have a completely incorrect model of the future of shareware. The Internet is completely
changing this concept, although the results aren't evident. Real Soon Now (don't hold your breath,
but it will happen) the capability will exist on the Net to "charge" very small amounts (fractions of a
cent) for access to specific sites. Shareware is probably going to look more like Java applets that
you engage when you need them (and pay a few cents for every use) then downloaded
executables. It's simply a more efficient and controlled market.
The model suggests that each of us will have a small "bank account" on the Net, into which we
deposit funds. Fee-for-service providers will be authorized to charge that account when you connect
to their site. (Y the authorization once, and establish a password at that time.) What's keeping this
from happening is the lack of secure password services, but that's not long in coming. This is a very
efficient market. Because it's all electronic it's practical to charge and exchange very small amounts
of money.
So, if this actually happens, what does that do to your IdeaFarm/Meterware concept? Mostly, it
changes the location of the meter, and cuts you out of the deal. Why? Because it's easier and less
intrusive to use. Of course, it does presume that the whole world is connected to the Net, which will
take the cable companies a few more weeks. <chuckle>
Rog
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Roger Loeb, 74666,355 Friday, January 05, 1996 1:12:11 PM
From: Jon Duringer[IdeaFa, 71732,3361 #70320
>> the capability will exist on the Net to "charge" very small amounts (fractions of a cent) for access
to specific sites. Shareware is probably going to look more like Java applets that you engage when
you need them (and pay a few cents for every use) then downloaded executables. It's simply a
more efficient and controlled market.
I agree completely. RSN, shrinkware and shareware will be history, in terms of market share. The
dominant distribution method for desktop objects will be meterware. Meterware is software that is
distributed for free with the usage itself metered. IdeaFarm (tm) Meteware Services for OS/2 is -one-
implementation of the meterware concept. There will be others. Java applets are currently the most
exciting of the other emerging meterware technologies.
There are significant differences between Java meterware and meterware that uses IdeaFarm (tm).
It is too early to predict which meterware technologies will dominate. The important thing is for
programmers and users to realize that meterware is coming.
>> cuts you out of the deal.
(1) Saying that Java will displace IdeaFarm is like saying that SmallTalk will displace C++ as the
language of choice for developing OS/2 EXE's and DLL's. I don't think so...
(2) I am a mathematical economist. IdeaFarm (tm) Meterware Services was written to create a
market in which I can support my research (and my wife and children) by independently selling
electronic books and software. For me, it is a means to an end, not the end itself. If another
meterware technology emerges that does the job better than IdeaFarm, then I will "cry all the way to
the bank". What I really care about is being able to write my electronic books for sale on the net.
Roger, IdeaFarm (tm) Meterware Services for OS/2 is my way to make sure that meterware
becomes the dominant form of desktop object distribution. It -will- happen, God willing, because I
intend to -make- it happen. I want to be an electronic book author. Whether my books are published
as IdeaFarm books or as Java applets is of no interest to me. But, to get there, I will push the
IdeaFarm (tm) approach to its natural limits and compete aggressively with any alternate approach
that emerges.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Buck Bohac, 70670,2352 Thursday, January 04, 1996 8:37:03 PM
From: Jon Duringer[IdeaFa, 71732,3361 #70252
>> at $30 US per registration, that comes to $2100 US.
Using your numbers, we estimate that each of top five shareware titles in OS2SHARE are earning
$2100 / year for their authors. This is comparable to the $1900 / year estimated income to the author
from a meterware product priced at 79 cents. So the idea that one can make money at a price point
below 1 dollar is not preposterous. Using plausible numbers, I could easily earn as much from Time
Tracker, priced at 79 cents, as the top shareware authors in OS2SHARE earn. Pretty good, for 12
hours of pleasant work.
>> Explain to me again what the advantage is to making my product a meterware product.
Let's assume that you are a computer programmer and that you have written a program that could
be used by a general OS/2 user. Let's assume that you are not familiar with the business side of
software. You don't have any marketing contacts. You aren't a member of ASP, you aren't familiar
with how to receive payments from customers in Australia, you've never considered how to add
nagging, drop dead dates, or crippling so that people will register, and you don't know the first thing
about how to get your product listed in Indelible Blue or carried on the shelves of EggHead. IOW,
you're just a normal Patty Programmer with a salaried day job and a program that you would like to
turn into a product.
For Patty Programmer, one advantage of meterware is that it is by far the easiest way to take a
program and make it into a product. Meterware eliminates almost all of the distribution hassle for
both the programmer and the user.
There are other advantages. Releasing a program as meterware rather than as registerable
shareware might result in greater gross income, even if the same price is set. This is because, with
meterware, the user never makes a purchase decision. She just makes a "use" decision. As she
uses the product, the purchase price is gradually and effortlessly collected.
To bring us back to our current topic (software priced below a dollar), meterware makes possible, for
the first time, mass distribution of software that is priced below a dollar. It is possible because almost
all transactions costs have been eliminated. Who knows how elastic the demand for software is? I'd
rather have 100,000 users each paying 79 cents than a 1000 users paying 30 dollars.
Leaving the programmer for a moment, let's note here that such a price phenomenon would be a
tremendous boon to both OS/2 users and OS/2 itself.
Finally, meterware is the only practical distribution method for "parts" and "components". For an
example of a part, see USEDELTA.CMD in GO OS2SHARE. That command file calls a function in
one of the Meterware Services API's. Each function in that API, which can be used by other
programs as well as by end users, is priced at 79 cents.
Buck, this is a major undertaking. Terry and I need you and the other leaders of the software industry
to take an interest in the launch of a meterware community. I want you to be involved. Will you join
us?
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Saturday, January 06, 1996 12:46:16 PM
From: Felix Cruz, 72274,3102 #70399
Jon,
> the user never makes a purchase decision. She just makes a "use" decision <
A "use" decision is a _financial_ decision nonetheless.
This sounds more and more like the traditional "rent to own" concept. In fact, making meterware
analagous to rent to own would ease the decision making process by making meterware a
continous innovation, and hence meet less resistance to change than a discontinous innovation.
If the program author is free to set the "use" charge, then a program could be "rented" at a price such
that the purchase cost could be recouped in just 2 or 3 "uses", correct?
Felix Cruz
SofTouch Systems, Inc
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Felix Cruz, 72274,3102 Sunday, January 07, 1996 8:58:15 AM
From: Jon Duringer[IdeaFa, 71732,3361 #70479
>> A "use" decision is a _financial_ decision
Yes, the decision to continue to use a meterware product has a financial impact, since you are
normally using up a free trial period and then are very gradually paying the full purchase price. But,
for practical purposes, there is never a decision to buy or not to buy. Instead, the user just starts
using the product and either keeps using it or decides that it does not meet her needs.
>> This sounds more and more like the traditional "rent to own" concept.
Terry and I found that "rent to own" has a bad reputation in some US cities due to the presence of
rent-to-own furniture stores that cater to poor people and that have a highly unfavorable reputation.
But, you are right, that -is- the way that capped meterware works.
>> If the program author is free to set the "use" charge, then a program could be "rented" at a price
such that the purchase cost could be recouped in just 2 or 3 "uses", correct?
Yes. The API supports a variety of pricing models. For example, you could set a separate price for
each of a thousand menu items in your product. You are limited only by the capacity of your
customers to understand what you are doing.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Guy Scharf [Sysop], 76702,557 Thursday, January 04, 1996 3:16:21 PM
From: Jon Duringer[IdeaFa, 71732,3361 #70209
>> you are telling your prospect to go to the store and buy their own copy to see what it is. In this
case, "buy" = take the time to download IdeaFarm AND Tracker, install them both -- a slow process
-- and then run them, hoping they have no technical support problems.
Yes, it -is- a PITA to install Meterware Services for OS/2 just to be able to use Time Tracker. But
once there are 10 meterware titles, taking the time to install the meter will make more sense. Right
now, only the innovators will want to get involved. I.e., people who mostly want to see how it all works
together, from beginning to end. These people will order refills in amounts like 35 cents, and I will
happily fill those orders. Time Tracker is just the excuse; most of us are going to be involved just to
see meterware in action, to touch it, feel it, have it on -our- computers.
BTW, I'm using Time Tracker to keep track of the time that I spend on a software development
contract, on meterware development, on marketing, and on tools maintenance. My initial impression
is that it is more than a toy; it looks like it is easy to use and it appears to get the job done. Priced at
79 cents, it might make sense for the general OS/2 user who does not currently use a more
sophisticated (and complicated) time management tool.
>> You suggestion someone write a program that they will charge 79 cents for? Get serious!
<ROF,L>
While you are rolling on the floor, consider the numbers. The five most popular files in OS2SHARE
are each downloaded an average of 10 times per day, 7 days per week. That is about 3500 d/l's
per year. Now, these products are priced about 30 $US, and many downloads do not result in sales.
But let's assume that Time Tracker turns out to do the basic job well and that, at 79 cents, is adopted
by 3500 people per year. That translates into a hassle free annual gross income of more than 1900
$US for the author (me). That's not going to make me rich, but I'd say it's a nice return on 12 hours of
work.
I'm quite serious about pricing my own meterware below a dollar. The user response could be
tremendous.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Saturday, January 06, 1996 12:46:13 PM
From: Felix Cruz, 72274,3102 #70398
Jon,
> But let's assume that Time Tracker turns out to do the basic job well and that, at 79 cents, is
adopted by 3500 people per year. <
Is this 79 cents paid *per use*, or is it a one time charge?
(And where is the @#^&*! "cents" sign?)
Felix Cruz
SofTouch Systems, Inc
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Felix Cruz, 72274,3102 Sunday, January 07, 1996 8:58:13 AM
From: Jon Duringer[IdeaFa, 71732,3361 #70478
>> Is this 79 cents paid *per use*, or is it a one time charge?
Neither. 79 cents is the full price per computer. It is collected gradually and transparently over a 79
day period, after a 10 day period of free usage. Once the full 79 cents has been collected, further
usage on that computer is free.
This assumes that you open the program object during startup and that you leave it open all day,
which is the way that I use Time Tracker. For example, when I start working on my contract, I switch to
the Time Tracker session and press the "m" key. (I decided to use the "m" key to represent that
activity.)
>> (And where is the @#^&*! "cents" sign?)
There is no cents sign on a US keyboard. Apparently, IBM did not imagine that meterware would
come along and make it possible to offer software to OS/2 users that is priced below a dollar. <s>
To get a cents sign, you need to use the extended ASCII code 189 while using a font that uses those
extended values to represent the IBM graphics character set. You can view these codes by
opening up the Knowledge Tree Editor (included with Meterware Services) and then selecting the
Tree\ Symbols menu item. To enter an ASCII code, you hold down the Alt key while using the
numeric keypad to key 1 8 9, and then you release the Alt key. This only works if your editor
supports it. (The Knowledge Tree Editor does.)
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Esther Schindler [EXEC], 72241,1417Thursday, January 04, 1996 10:56:25 AM
From: Jon Duringer[IdeaFa, 71732,3361 #70165
>> If I ask, "What is chocolate?" I don't want to be told to go out and acquire some.
As a general principle, I agree. But my experience with meterware, and also with introducing a new
concept within my field of mathematical economics, leads me to really believe that "a picture is worth
a thousand words". Take a person, Cheri, who has -never- encountered chocolate, and consider
two scenarios. In the first, Cheri asks, "What is chocolate?", and is told, "Chocolate is a food that
tastes sweet." In the second scenario, Cheri is simply handed a big bar of pure chocolate and
invited to take a bite.
If you were Cheri, which answer would you find more informative?
>> it's to your benefit to give me an answer that makes me WANT to go out and download, install,
start using.
The only practical reason, at this point, for installing the meter is that you want to use IdeaFarm (tm)
Time Tracker. Do you want to know where you spend your time? Would you like to acquire this
capability for 79 cents plus the 10 minutes that it will take to install Time Tracker? If the answer is yes,
then you have a reason to get the meter.
>> I think you need to create several small examples of useful utilities or small applications
(YOURSELF) that use Meterware
That's exactly why Time Tracker was uploaded last weekend. Terry is going to focus on getting the
innovators among us involved. I'm going to focus on an OS/2 software development assignment
that I've received, and when I can, I'll upload meterware products which are either illustrative or really
useful.
>> if you have a small but successful application (say, an incredibly basic expense reporting
program)
Are there any programmers in the house? I'm fully committed and can't jump onto this product idea.
Why not take next weekend and craft an "incredibly basic expense reporting program"? Get the
program written, and I'll put the metering call into your code for you. Then you can price it at, say, 79
cents, upload it, and we'll all watch to see what happens.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Thursday, January 04, 1996 7:55:19 PM
From: Esther Schindler [EXEC], 72241,1417#70247
> Take a person, Cheri, who has -never- encountered chocolate, and
> consider two scenarios. In the first, Cheri asks, "What is
> chocolate?", and is told, "Chocolate is a food that tastes sweet."
> In the second scenario, Cheri is simply handed a big bar of pure
> chocolate and invited to take a bite.
Ah, but you HAVE the chocolate right there for her to experience. That's quite different than telling her
to go out to a local Godiva store to buy some and find out for herself... which is rather what you're
suggesting when you tell her "go download...."
That's why I suggest that YOU write the "taste samples," not other developers. You have to
demonstrate to them that a viable market exists and is hungry for what you're offering.
> Do you want to know where you spend your time?
No, not really. <grin>
Not unless I'm billing for it... and then I require reporting and invoicing and invoice tracking tools. Add
those, and maybe I'll take a look at it.
--Esther
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Esther Schindler [EXEC], 72241,1417Thursday, January 04, 1996 8:54:05 PM
From: Jon Duringer[IdeaFa, 71732,3361 #70254
>> That's why I suggest that YOU write the "taste samples," not other developers.
I'm not smart enough to do that. A programmer is lucky to have one truly great idea in her life.
Meterware might have been "it" for me. Using a baseball analogy, you are saying, "Hey, Jon, it's
great that you hit a home run, but we wanted you to hit a grand slam." My reply would be, "How can I
hit a grand slam when there's no one else on base?".
>> You have to demonstrate to them that a viable market exists and is hungry for what you're offering.
People who need someone else to demonstrate that an unexploited profit opportunity exists don't
belong in business. I've created the opportunity. That might be all that I can do. The rest is up to
those who will see the vague, shimmering, ghostly outlines of the opportunity, bet their butts that its
really there, and exploit it.
Those who succeed will be heroes. I'm not a hero. I'm a hero-maker. Time Tracker is probably the
best that I'll be able to do for quite a while. God help us if the fate of meterware rests on Time
Tracker!!!
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Friday, January 05, 1996 8:50:24 AM
From: Esther Schindler [EXEC], 72241,1417#70289
You HAVE to be smart enough to do that.
Go to the grocery store on a Saturday morning. You'll see food company representatives giving out
free samples of salmon spread, ice cream, sausage patties. They give you a taste and you'll buy a
whole package.
YOU have to prove the package to your audience (programmers). Before they invest their own time
and energy, you have to have already sold them on the idea. You aren't doing so by telling them to
spend the time.
Jon, the fact that you get this much resistance from THIS crowd means that:
(a) you have to rethink the product idea or
(b) you have to rethink your product positioning.
--Esther
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Friday, January 05, 1996 11:58:31 AM
From: Roger Loeb, 74666,355 #70314
> A programmer is lucky to have one truly great idea in her life.
Baloney. Most programmers never have one great idea. The ones that do seem to have LOTS of
them. Of course, some of those great ideas aren't worth implementing, not because of the idea but
because of the marketing problems. You still have to find a set of customers who reference each
other in order to create a market. (Thank you, Mr. Moore, for making that so explicit!)
Rog
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Wednesday, January 03, 1996 3:50:22 PM
From: Esther Schindler [EXEC], 72241,1417#70097
> the nature of the ad is changed fundamentally. For shareware and
> shrinkware, the message is, "Purchase Me!". for meterware, the
> message is, "Start Using Me!". The goal of a shrinkware or
> shareware marketing program is SALES. The goal of meterware
> marketing program is USAGE. This is a fundamental change.
Okay, maybe I'll grant you that. (And maybe I've been worn down.)
Now: how are you going to get from here to there? Making promises to developers won't do it. You're
telling them to change their entire way of doing things. What clear return on investment can you offer
that's worth their making such a major change? (Ie how will this let them make more money?)
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Jon Duringer[IdeaFa, 71732,3361 Saturday, January 06, 1996 6:59:10 PM
From: Charles Stirling, 100010,1433 #70449
As Esther has pointed out very well the problem for a lot of software and especially OS/2 software is
to known about first.
> shareware and shrinkware, the message is, "Purchase Me!". for
> meterware, the message is, "Start Using Me!
This is assuming that "purchase me" is the only stumbling block in marketing. It is only one of them.
Prices seem to fall into bands and some products for specific users will always be in too high a band
(even if "free", time is part of the price). Emphasizing this one aspect of marketing only dosn't sell.
Subj: Pound Pound Pound Section: Marketing OS/2 Apps
To: Charles Stirling, 100010,1433 Sunday, January 07, 1996 8:58:17 AM
From: Jon Duringer[IdeaFa, 71732,3361 #70480
>> the problem for a lot of software... is to known about first.
Yes. Metering makes it easier for users to learn more about your product, but you still need a
marketing program targeted at a self-referencing market.
>> This is assuming that "purchase me" is the only stumbling block in marketing. It is only one of
them.
One of the obstacles to making a sale is that, when the user is asked to make a yes/no buy decision,
she might say "no". IMO, the other key obstacle to making a sale is that the user does not
understand what she can accomplish with the product, because the marketing program has not
provided a clear, understandable statement of features and benefits that the user can understand.
Programmers spend months writing the code and only minutes writing the product description, not
realizing that users are really purchasing the description, not the code.
What other obstacles to sales can you think of, Charles?