|
Selling Software in the Retail Market
Many developers hesitate to make the jump from
"electronic" business to "retail" business. What
many do not realize is that the transition, at
least initially, can be done gradually. For example,
developers can offer on-demand media through a
third party, without the up-front costs that are
typically associated with retail packaging. After
offering a media option, retail is the next logical
step for many software developers.
Software developers will often work with publishers
in order to "go retail". The publishers may have
a specific expertise in a given region, or they
may fund the packaging and have already-existing
distribution channels for packaged software. Using
a publisher reduces the expense to the software
developer, as the publisher typically covers the
initial costs. The publisher absorbs the expenses
and up-front costs for the packaging, thus reducing
the financial risk to the software developer.
The downside to using a publisher is that the
developer then needs to share the wealth -- publishers
can take as little as 50% of the revenue, or as
much as 90% of the revenue. Developers of more-established
products are often able to negotiate lower percentages,
while developers of lesser-known products tend
to have less negotiation power because it is riskier
for the publisher to take on the unknown products.
Success in "retail" depends on a few critical
factors:
1. Demand Must Exist For Your Product
The most successful retail applications have
brand recognition and industry demand. The more
established an application, the better the chances
of success in the retail channel.
2. Packaging Matters
Selling retail software is all about curb appeal.
The wrapper, the graphics, and the packaging all
play a role in whether the software will sell
or not. Appealing software packaging that distinguishes
one product from a competitor can mean the difference
between success and failure in the retail marketplace.
3. It Will Cost Money To Enter Retail
No matter how you slice it, entering the retail
market will cost money.
4. Bug Free
Prior to going retail, the software should be
fully tested in a variety of situations. Retail
is all about quantity. An "update" release that
contains a bug fix, which requires the packaging
to be re-printed or the media to be reproduced,
is going to cut deeply into any profit margins.
Software should be fully tested before going into
retail production.
5. Localization
Some of the most successful retail applications
are localized and translated into the language
common in a specific region. Marketing in retail
is very similar to online marketing. Marketing
is about perception, and not always rooted in
reality. Creating an appealing product that with
attractive packaging is only the beginning to
selling software in the retail market.
Related Articles:
What are Resellers?
What are OEMs?
What are Software
Publishers?
What are Affiliates?
|
Developer
101
Going Retail