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- Path: sparky!uunet!gatech!concert!allen!cliff
- From: cliff@allen.com (Cliff Allen)
- Newsgroups: misc.entrepreneurs
- Subject: Re: Super fast and inexpensive marketing
- Message-ID: <00mkPB1w164w@allen.com>
- Date: Sat, 15 Aug 92 19:33:20 EDT
- References: <1992Aug15.012330.29463@uwm.edu>
- Organization: Allen Marketing Group - Raleigh, NC
- Lines: 41
-
- markh@csd4.csd.uwm.edu (Hunk) writes:
-
- > If I have a software product that expands on a smaller version which had a
- > proven track record of popularity in the public domain, would it then make
- > sense to start marketing the larger package by a direct mail campaign?
- >
- > For example, I can get a list of (say 1-5 hundred) addresses together, wri
- > up an ad/order form, and send out the letters, get a few orders, sell, turn b
- > some of the profit into a larger batch of letters in the next round, etc.
-
- When a product is successful in shareware it is inviting to launch it as
- a commercial product, however there are a few differences in the
- expectations of the market that you need to allow for.
-
- When we use and register shareware I think many users evaluate the
- product based on the features of the current version since they realize
- the developer probably has a "real job." When we evaluate commercial
- software we look for an established company that can provide support and
- regular upgrades. Also, since most commercial software is more expensive
- than comparable shareware, prospective buyers are a little more
- skeptical.
-
- This means that the commercial developer needs sales literature that
- projects an image that they can meet these needs.
-
- > It seems if the product really IS popular, I should be able to generate
- > progressively larger batchs of letters on each subsequent round and bootstrap
- > myself into a profitable self-supporting business after 3 or 4 rounds, with
- > very little (< $250) initial capital on round 1.
-
- If you plan to rent mailing lists, keep in mind that most brokers have a
- 5,000 name minimum (at around $100 per thousand names) so you'll pay
- about $500 just for the names. However, usually you can use them over
- several months. The other initial cost is for printing brochures -- the
- cost per piece goes down rapidly so order enough to cover a few months of
- mailings.
-
- By the way, don't forget to study your competitors to see what they are
- doing with direct mail, advertising, pricing, support, etc.
-
- Cliff
-