gnu@hoptoad.uucp (John Gilmore) (12/30/87)
This is excerpted from a paper called "Shareware Marketing Concepts", by Bob Wallace of Quicksoft Inc (PC-Write). It was distributed at the Hackers Conference last October. Quote: "Shareware, as used in this document, is a marketing technique for commercial software packages in which the software may be freely copied and shared, but voluntary payment (registration) is expected from people using the software. The term "shareware" is a generic term for this technique, coined by myself. The phrase "user supported software", used by Buttonware, is (as far as I know) equivalent. The word "Freeware" is a trademark of The Headlands Press (unless they decide to release it) and so should not be used. "Public domain software" means non-copyrighted software; that is, software anyone can modify, rename, sell, give away, etc. The main reasons for using this shareware approach are: 1. Providing useful software to as many people as possible. 2. Providing more value to customers by providing a way to evaluate the software at little risk. 3. Developing a large user base who may want to purchase additional goods and services. 4. Developing a high market share for a particular category of software. 5. Communicating the benefits of the software in an effective way, using the actual software. 6. Communicating the benefits of the software in an inexpensive way, compared to advertising. ... Shareware is successful for a software package if: The number of people who BUY it BECAUSE it is shareware outnumber those who DO NOT BUY it BECAUSE it is shareware. The number who do buy it because it is shareware are those who: 1. Are aware of and/or try the package ONLY because it is shareware, and 2. Who then register after trying it. Those who take step one but not step two do not affect the analysis. The number who do not buy it because it is shareware are those who: 1. Are aware of and/or try the package ONLY because it is shareware, and 2. Who then use the package without registering it, and 3. Who WOULD have bought the package, had it not been shareware. Those who take steps one and two but would not have bought anyway (pirates) do not affect the analysis. ... Why Shareware Works -- summary Many people try PC-Write, like it, and register their copy with us. People register for many reasons. Some want the printed manual, phone support, or other services. Some feel it is the moral or honorable thing to do. Some want to belong, to feel appreciated (and they are!) or want to support us. Shareware only works for software people find valuable. It works best for software people use every day. It works best for a small software company, since each person's registration makes a difference. Software packages are alive, in some sense. They evolve: bugs get fixed, new features get added, they get adapted to new environments, like new computers or operating systems. People use packages in new ways, and discover new behavior patterns. But a package is only alive if someone supports it. Most people prefer living software. Most invest some effort learning their software. So, most will pay a reasonable amount to keep their software alive. Diskettes are easy to copy. People can make perfect copies quickly using normal equipment. Compare this with print, audio, or video media! People like to share useful things with others, if the cost and risk to them is low. And people often choose things based on word of mouth. Shareware is just "word of disk". It both promotes and distributes our product. People can try our software without risking a lot of money (or breaking the law). Computes are risky enough. People trying our product can relax; if they don't like it, it's no loss. People appreciate that." End of quote. There's a lot more, but this was the part most relevant to the Usenet discussion. -- {pyramid,ptsfa,amdahl,sun,ihnp4}!hoptoad!gnu gnu@toad.com I forsee a day when there are two kinds of C compilers: standard ones and useful ones ... just like Pascal and Fortran. Are we making progress yet? -- ASC:GUTHERY%slb-test.csnet