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Schools and non-profit organizations are great vertical markets, with a lot of recurring purchase capital. If your software appeals to these markets, follow these steps to increase your educational and non-profit sales...

1. Discount Expectation

Most schools and non-profit organizations will expect some sort of discount. While it is not mandatory, the industry standard has been defined by larger software companies, and a token Educational or Non-Profit Discount is offered by nearly all companies selling into the academic and non-profit sector.

2. Purchase Orders & Invoicing

Schools and non-profits rarely have credit cards available to make purchases with. Instead, they nearly always need to purchase things using a Purchase Order (PO) system. A Purchase Order is a signed document that indicates that the buyer wishes to purchase a specific product or service, and that they agree to pay for it. Some developers handle POs directly, while others use their online ecommerce service provider to handle them.

3. W-9s

A W-9 form is an IRS (Internal Revenue Service) form that is required by the US government for US-based businesses. Schools and non-profits will often require that you provide them with a signed W-9 before they can do business with you. Information on W-9 can be found here: http://www.irs.gov/pub/irs-pdf/fw9.pdf

4. Multi-Licenses & Site Licenses

Schools and non-profits will often be interested in purchasing a multi-seat license or a site license. Determine how licensing and pricing will work for large quantities before you receive an inquiry.

5. Viral Advantage

Unlike regular retail businesses, schools and non-profit organizations do not compete with each other. Therefore, it is very common for them to talk to each other and share tips, techniques, product recommendations, and vendor experiences. Use this knowledge to your advantage.

6. Long Sales Cycle

It is not unusual for schools or non-profits to evaluate, test, and make purchase decisions on software products in advance, while not including them in their budgets until the following year. Always remember that there can be a very long sales cycle when selling into the school or non-profit sector.

7. Calendar Year

Many schools and non-profits do not follow the standard calendar year. For example, schools will often have their year end in mid-summer, normally around the end of June. Be sensitive to this, as they may require invoices to be pre-dated or post-dated in order to fall within a given years' budget allocation.

8. Money To Spend

Occasionally schools or non-profits will receive financial grants, and if they do not spend the money within a certain time frame, they simply lose it. Help them spend the money when they have it! This can often be a great time to upsell or suggest related products.

Being patient, dealing with the details and forms, and taking the extra steps necessary to work with the needs and requirements of schools and non-profit organizations can be very lucrative in the long run.

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