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MicroISVs Marketing to Big Business
The thought of selling to large entities such as corporations, schools, and government agencies can sometimes be overwhelming to a small software house. But it is a misnomer to think that only large companies can sell to other large companies. Many MicroISVs sell quite successfully in the B2B (Business-To-Business) marketplace. There is no secret formula to selling to big businesses, but a few basics can make selling into this market much easier...

1. Accept Purchase Orders
In order to sell to corporations, schools, or government agencies, you need to be willing and able to accept purchase orders. Purchase orders essentially serve as a contract between the supplier and the purchaser. The supplier is obligated to provide the goods or services requested on the purchase order, and the purchaser agrees to pay for the products or services listed. Many large institutions work on credit, and will expect to be extended credit as long as they provide a valid purchase order.

For more information about purchase orders, see this associated article: Understanding Purchase Orders

2. Be Willing To Work With Resellers
Some large companies and government agencies have agreements to purchase only through specific resellers. The businesses and agencies may have agreements with these resellers, stating that the reseller will sell to them on specific margins (10% +cost or something similar). It can be time-consuming for a large company to set up a supplier in their vendor database just for a single item purchase. In order to save time, they will instead make such purchases through a reseller. The company or agency may even pay more for an item by purchasing through a reseller, because their administrative processes are so cumbersome. Establishing a relationship with major resellers can be instrumental in selling into the corporate market.

3. Understand The Sales Process And Cycle
The sales cycle for selling in the B2B (Business-To-Business) market tends to be much longer than in the B2C (Business-To-Consumer) market. Additionally, in the B2B marketplace, the individual making the actual purchase of the software is often not the same individual who requested or will be using the software. Large companies often have a separate purchasing department that all employees work through for the things they need.

4. Provide Quotes
Many companies, schools, and government agencies will request a price quote prior to making the purchase. Price quotes should be on company letterhead, and should contain any special purchase instructions, payment terms, etc. For example, if the item being ordered is an "upgrade", and you need the original serial number, be sure to include a notation of that requirement with the price quote.

5. Licensing
Many companies will want to purchase license packs, or site licenses. For such situations, you need to have a pricing structure already established, in advance, for quantity discounts and/or site licenses. This way, if you receive such an inquiry, you can respond with the details quickly and professionally. Also, consider how you will handle support queries for a large corporate license. Be prepared to provide details and answer questions on pricing for future upgrades, ongoing maintenance, and technical support for the software. Large companies may need these numbers to prepare their budgets, especially if the software is something that is critical to their operations.

For more information regarding licensing, see this associated article: Licensing Software

Selling in the Business-To-Business market really is not terribly different from selling in any other market. You simply need to prepare yourself for it in advance, so you can take advantage of such opportunities when they arise.

Related Articles:
How to Price Software
How to License Software
How to Manage Upgrades
Most Common MicroISV Mistakes