| December 1998 Archived at Pineapplesoft |  | |||
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The Pineapplesoft Link newsletter covered a wide range of technical topics, see the archived issues. The newsletter was first emailed in 1998. In 2001 Benoît discontinued it in favour of professional writing for magazines. The “December 1998” page was archived in 2003 to preserve the original content of December 1998. | ||||
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Welcome to the twelfth issue of Pineapplesoft Link. It's been a year since I launched Pineapplesoft Link and what an exciting year it has been! I hope you have enjoyed your monthly issue and will continue to enjoy it next year. This issue will discuss e-commerce (electronic commerce) from an original perspective: the shareware industry. I will argue that the shareware industry is one of the oldest form of e-commerce and therefore provides valuable insights. This article is not for shareware authors but for anybody interested in e-commerce. Please continue sending me your comments, questions or suggestions to [address removed, the newsletter is no longer published thank you for your support]. Table of Contents Subscription [Subscription information, the newsletter is no longer published
thank you for your support. After the warm reception it received last month, the online bookstore returns to Pineapplesoft Link. This bookstore is in association with Amazon.co.uk, the British online bookstore. Up to 20% reduction. Scroll down for the main article. How I Sold a Million Copies of My Software... and How You
Can, Too! by H. Kraft (Adams Media) C/Net Guide to Shareware.com (Ziff-Davis) The Luck of the Bodkins by P.G. Wodehouse (Penguin) Pineapplesoft Link, December 98: There is lots of discussion about e-commerce and how the Internet is changing the way we do business. This is, indeed, a very complex debate. The debate is complex, because the matter is complex. Commerce is a very broad term. There is little in common between the commercial strategy of Coca-Cola, a consumer-centric company, and that of Oracle, which develop corporate products. Likewise, there is a very diverse range of e-commerce companies. We tend to think of e-commerce as Internet shops such as <http://www.musicblvd.com>. They are but the tip of the iceberg. Furthermore, the issue is not strictly technical. It impacts on the business practice of organizations. E-commerce is the meeting point of sales, marketing and technicians. Finally, we are in the early days of e-commerce. We lack references on what works and what doesn't. The debate is still largely a debate of ideas without concrete facts to support them. Or is it? Shareware has been around for the last 15 years. Shareware appeared on BBS and online services. It prospered on the Internet. Shareware has had a profound impact on how software is bought and sold. For example, demos and trial versions are direct legacies from the shareware industry. This article is not intended for shareware authors only. It targets the broader community of e-commerce. The Shareware Industry Shareware originated from authors who wanted to commercialize software with minimal fuss. The idea originated on BBS and online services such as CompuServe or AOL. It gained additional popularity with the arrival of the Internet. Shareware applications are distributed electronically on a trial basis. Customers download the trial version and test it for a limited period. It is only if they like the application that they buy it from the editor. Obviously shareware is e-commerce since the transaction and delivery of goods are done online. The impact of shareware on the software industry cannot be underestimated. It gives us a first idea of the potential impact of e-commerce on commerce at large. Previously software was bought in computer shops. One would buy a package without testing. To help selecting the right package, one would read reviews in the computer press. Shareware changed the fundamentals of the business by giving users a chance to evaluate the application before buying. Mainstream software vendors have massively bought into this approach and routinely ship trial versions of their products with magazines and on the Internet. Although Pineapplesoft is not a shareware company, I have some experience in the field, having released several sharewares. Even today, I distribute one product as shareware <http://www.psol.be/lib/2003/0912a.html>. Let us now review some key aspects of shareware: customer interest, ubiquity, pricing, etc. We are interested in how it has influenced the software industry and how it can serve as guidance when implementing e-commerce. Customer-centric With its "try before you buy" approach, the shareware industry is very customer-centric. More than in the traditional software business, success comes from very high-quality products. The shareware culture, born on BBS and the Internet, also encourages the user to openly criticize products. Finally shareware evolves very fast, often through numerous beta versions. Mainstream software vendors have copied some of these habits notably with demo version of their applications, open support forums and by releasing beta software. Being closer to the customer and more customer-driven is often touted as the primary reason to implement e-commerce. Amazon.com is a good example of a company with a very open communication policy. Customers are encouraged to post reviews of books and these reviews can be negative! Ubiquity Ubiquitous distribution is the key to succeess in the shareware industry. Successful authors list their products on as many CD-ROMs and web sites as possible. This is in sharp contrast to the former model in use in the software industry. Traditionally, vendors tried to limit distribution in an attempt to curb piracy. This influence on the software industry is less clear but it is worth noting that vendors are now pushing their products like crazy: on CD-ROMs with magazines, pre-installed on computer or bundled with other software package. I believe that e-commerces that take advantage from ubiquitous distribution will boost their revenue. Already affiliate program such as ClickTrade is a huge step in that direction. With an affiliate program, vendors sell through other sites. Discounting Thanks to cheaper distribution and limited marketing, shareware authors made huge savings. Most decide to pass the savings to their customers. Mainstream vendors have jumped on the wagon. In the early 90's when you bought software, it would come with heavy manuals. Nowadays, the bulk of the manual is online, enabling huge savings and somewhat discounted pricing. Likewise online vendors do not charge you for disks. High-quality products at a discount is a common sale argument on the web. For example, 1-800-MYLOGO offers good design services at a low-price. Simple Buying Having already delivered the goods, the shareware authors have to make the buying process as simple and attractive as possible. Successful sharewares feature simple buying instructions and easy online ordering. Some companies, such as Kagi, even specialize in helping software authors sell online. It is obvious that e-commerce in general is not yet as mature as shareware. Buying is still a challenge on many e-commerce sites. Some sites are so confusing that shoppers do not understand how to buy (the worst but alas not uncommon case). Alternatively, some sites are buggy causing errors when ordering. Relationship Shareware vendors also discovered the benefits of establishing a strong relationship with their customers. They typically offer goodies or additional services as a way to lure new customers. WinZip, for example, has offered free upgrade for many years. Again, the e-commerce industry has a lot to learn from shareware authors. There are early attempts from companies such as E*Trade (through special services such as email notification) but more can be done in this area. Large sites, for example, are only beginning to tap into their relationship with their visitors. Some Lessons There are more lessons to learn from shareware. For example, on the role of brokers such as CD-ROM publishers of which portals could learn a lot, or on how shareware authors have learned to sell globally on the refreshing simplicity of the shareware scheme. My goal in this article is not to analyze the shareware completely but rather to show you how shareware serves as a valuable reference when discussing the evolution of e-commerce. After all, shareware authors pioneered e-commerce. Help spread the word about Pineapplesoft Link! If you like what you read, take a moment to vote for us at <http://www.best.be/top100>. Developer.com published two new articles, both about Java, this month:
Visit our web site and enjoy our new "Mostly Business" cartoon. In association with Ted Goff of Saturday Evening Post and Wall Street Journal fame, Pineapplesoft is proud to present you a new cartoon every day. So bookmark our page and remember to visit us every day! www.psol.be Pineapplesoft Link is published freely, every month via email. The focus is on Internet applications in its broadest sense: distributed and mobile computing, e-commerce, Java, XML, etc. The articles target people interested or concerned about technology either personally or professionally. This issue of Pineapplesoft Link may be distributed freely via email for non-commercial purposes as long as attribution (including the URL: www.psol.be) is given. For commercial redistribution or redistribution on other media, please contact me . Editor: Benoit Marchal Acknowledgements: thanks to Sean McLoughlin MBA for helping me with this issue. Back issues are available at <http://www.psol.be/old/1/newsletter/>. Although the editor and the publisher have used reasonable endeavors to ensure accuracy of the contents, they assume no responsibility for any error or omission that may appear in the document. Pineapplesoft is a registered trademark of Pineapplesoft sprl in the Benelux. Last update: December 1998. |