[comp.sys.mac.programmer] Shareware and $$

dplatt@coherent.com (Dave Platt) (04/13/90)

In article <49b9d37b.15840@valley.UUCP> pfluegerm@valley.UUCP (Mike Pflueger) writes:

> Second, from my experience, don't bother.  It gets distributed quite widely,
> and VERY few people pay.

True.  I doubt that there are more than a handful of people who have
made a substantial amount of money from their shareware products...
Scott Watson (Red Ryder), Don Brown / CE Software (DiskTop), Jeff
Shulman (VirusDetective), and perhaps David Alverson (ZTerm) are among
the few I can think of.

Most people don't seem to feel an obligation to pay the author for
shareware...  especially if they've received the shareware via a channel
which costs them money (e.g. a PD/shareware reseller, Compu$erve, etc).

>                              These people then have the nerve to expect
> support for the software.

Nerve?  Well, I dunno.  If you're asking somebody to pay you for the
right to use your software, then (in my humble opinion) it's not
surprising at all if they expect you to provide support of some
degree... e.g. the same degree of support that they would expect from a
commercial software vendor selling a similar product for a similar
price.  If you're asking them to pay you money for the software "as is",
with no assurance of support, I'd suggest making this clear in the
documentation.

It's probably significant that the few people who have made money from
their shareware products seem to be those who DO provide some degree of
support for their users.  Jeff Shulman, for example, has done a really
superb job of supporting people who have paid the registration fee for
VirusDetective... his virus-alert and update-notice postcards are more
professional than many similar things I've received from vendors of
expensive commercial products.  His artwork is better, too!

> Worst of all, you get companies like Educorp who get copies and distribute
> them FOR PROFIT without a) contacting you or asking permission in any manner,
> b) giving you any share of the profits, or c) verifying that what they're
> distributing is even functional.  I saw several of my programs just pop up
> one day in their catalog and went through a lot of hassle trying to either
> be compensated or have them removed (one of the main things that bothered
> me was they had never contacted me and were distributing an incomplete and
> modified - non-functional - version of one of my programs and I got many
> calls from people who wanted support and believed they'd paid for the
> product).

Yeah, Educorp has a bad reputation for doing just this.  They seem to be
getting a bit better lately... at least, I did receive a letter from
them asking for permission to distribute one of my freeware products.
The letter wasn't wonderful... it was a "sign here to give us
permission, mail us your latest version, and we'll distribute it for
you."  They didn't explain who they are, or give much information about
the conditions of the distribution.  I turned 'em down, based on what I
sensed of their attitude.

I checked EduCorp's "show special" catalog at MacWorld yesterday.
According to what I saw, their "antivirals" disk is horribly out of
date... it seems to contain nothing capable of coping with WDEF, and
listed Interferon as a "thumbs-up" (primo, recommended) utility.
Interferon is obsolete;  its author recommended quite some time ago that
people stop using it and switch to Disinfectant or Virex.

On the other hand, there are PD/shareware distributors who do a better
job.  I've been reasonably impressed by Somak Software... they seem to
be committed to releasing only well-researched, functional software.
They have fewer disks than EduCorp, but the disks seem to be a far
better value.  When they wrote to me for permission to distribute
MandelZot, they explained their philosophy and terms quite clearly and
politely.

Somak's catalog has a very clear and prominent writeup on "This is
shareware, and here's why you should pay the requested fee to the author
if you use it."  They seem to get the message across to people... I've
received several shareware payments from people who got copies of
MandelZot through Somak, even though I don't ask for any such payment!

Somak called recently and asked for permission to distribute my
Eradicat'em antiviral INIT.  I gave permission, on the condition that
the disk be distributed for a charge of no more than $4 (about half what
they usually charge, and on a par with what non-profit user-groups
usually charge for their PD/shareware library disks).  Somak followed up
with a phone call asking for my reasons;  I explained that I felt that
freeware antiviral utilities should be distributed "pro bono" (for the
public good).  On reflection, the folks at Somak agreed, and will be
releasing a bargain-priced sampler/antiviral disk in their spring catalog.

BMUG, also, politely phoned and asked for permission to distribute
MandelZot on their PD-ROM.  I have no hesitation in granting any such
group permission to put my freeware/shareware in their libraries.

If you don't want your shareware or freeware distributed by folks who
are making money by doing so, you should include a valid copyright
notice in the program and documentation, and a "Commercial distribution
restricted, written authorization from the author is required" clause.

> If you have a good enough product or fill a market niche, and want to
> make money, by all means go commercial.  Don't bother with shareware
> if you want money, unless you make the program auto-disable or only
> semi-functional.  People just won't pay.

In general, I agree.  I'd suggest three categories, though:

-  Simple stuff which you don't care to support... freeware.
-  Good stuff which you're willing to support to some degree, but which
   you prefer to distribute via nontraditional channels... shareware.
-  Good stuff which you're willing to advertise and support... commercial.

If you aren't willing to support it, and/or if it isn't something which
people will find to be very useful in their day-to-day work, don't send
it out as shareware... you'll be disappointed.

> My estimate is that out of 100 people who use the program, you'll only
> see money from about 1.

If it's a really solid product, and if you provide an incentive for
paying the shareware fee (i.e. support), I think you you can do
significantly better than this.  If you've written a simple little hack,
aren't supporting it, and are simply "casting it upon the waters" in the
hope of making money, then you may not even receive payment from 1 in
100.

> I keep all my goodies to myself these days.

I'm sorry to hear that, Mike.  I hope that you'll rethink your
expectations, and reconsider your decision.

I've released a couple of goodies over the past few years.  I've chosen
to keep them as freeware rather than shareware... I'd rather have 100
people using them with clean consciences, than have 50 people use them
guiltily ("I really _should_ send him the money"), 2 people use them and
pay, and another 50 refuse to use them because they can't justify
sending money for a nonessential.  The good vibes I get from happy or
grateful users are worth more to me than the few $$ I'd get by demanding
a shareware payment.

I have, however, created a commercial version of one of these
products... with substantial value added.  The freeware and
commercial version will exist in parallel... it'll be interesting to see
how the market treats this combination.

-- 
Dave Platt                                             VOICE: (415) 493-8805
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chuq@Apple.COM (The Bounty Hunter) (04/13/90)

dplatt@coherent.com (Dave Platt) writes:

>> Second, from my experience, don't bother.  It gets distributed quite widely,
>> and VERY few people pay.

I feel like someone should pop in and point out the difference between
'distribute' and 'use' here. I take a look at a fair number of shareware
programs over a period of time. The number I use is rather small. Just
because I downloaded it from GEnie and didn't pay for it doesn't mean I'm an
idiot. It may mean I decided it wasn't useful to me, so comparisons like "It
got 500 downloads and 4 checks" aren't necessarily valid. (which is not to
imply those 496 people all threw it out, just that some percentage did. The
rest didn't pay).

>True.  I doubt that there are more than a handful of people who have
>made a substantial amount of money from their shareware products...
>Scott Watson (Red Ryder),

Who decided he had to take his product commercial

>Don Brown / CE Software (DiskTop),

Who decided he had to go commercial to survive, and only distributes
freeware stuff (like Vaccine) now as promotional material for his commercial
products.

>Jeff
>Shulman (VirusDetective),

Who still has shareware stuff out there (thanks, Jeff!) but also has
crippleware/demoware as well.

I point this out only to remind folks that the 'successes' of shareware are,
at best, marginal successes. It's more or less a no-win situation for the
author.

>>                              These people then have the nerve to expect
>> support for the software.

>Nerve?  Well, I dunno.  If you're asking somebody to pay you for the
>right to use your software, then (in my humble opinion) it's not
>surprising at all if they expect you to provide support of some
>degree..

Damn straight. And they should. The idea of shareware was to allow people a
chance to buy something of commercial quality without the markups involved
in a commercial endeavor -- distributor and retailer markups, advertising,
packaging overhead, et al. That doesn't mean the author doesn't have the
responsibility to deal with the product like a real, commercial product --
just to get the middlemen who like to stand in between author and customer
with their palms sweaty out of the loop.

There are authors who do a good job of support: Dave Dunham, Jeff again, the
author of Boomerang (with his billions of bug-fixes and his refusal to
accept money until boomerang stopped being betaware) come to mind offhand.
But you're still shipping a commercial product, and that means that you have
a responsibility to your customers to support it (your *paid* customers,
I'll emphasize. If they're supposed to pay and don't, they got no room to
complain). The number of shareware authors who have cashed checks and
disappeared, only to have the program break on new machines or new releases
of system software are legion, and one of the reasons why I think many
people are wary of shareware in general.

>It's probably significant that the few people who have made money from
>their shareware products seem to be those who DO provide some degree of
>support for their users.

Agreed. I'm more likely to send in a shareware check to someone that shows
he cares about his users than a generic about box with a plea for money.
It's called building a relationship -- there are so many random (and trivial
or useless) pieces of software clamoring for my shareware money that
something has to make themselves stick out above the noise.

-- 

Chuq Von Rospach   <+>   chuq@apple.com   <+>   [This is myself speaking]

I regret to announce that--though, as I said, eleventy-one years is far too
short a time to spend among you--this is the end. I am going. Good-bye.
		-- Bilbo

escher@Apple.COM (Michael Crawford) (04/13/90)

In article <40230@apple.Apple.COM> chuq@Apple.COM (The Bounty Hunter) writes:
>
>Damn straight. And they should. The idea of shareware was to allow people a
>chance to buy something of commercial quality without the markups involved
>in a commercial endeavor -- distributor and retailer markups, advertising,
>packaging overhead, et al. That doesn't mean the author doesn't have the
>responsibility to deal with the product like a real, commercial product --
>just to get the middlemen who like to stand in between author and customer
>with their palms sweaty out of the loop.

I read in the MicroTimes, or maybe Bay Area Computer Currents, that the
manufacturers of PC-Write, which charges I think $99 for shareware fees,
estimates 30% of their users actually pay, and gross $2 000 000 per year.

I understand they also provide excellent support for registered
users, and have actually a full range of products for the IBM PC market.

One other reason I might want to do shareware is so I can just write it and
send it, and maybe do support via e-mail;  the PC-Write people are a real
company, with a real support staff; they just have low distribution overhead.
They do advertise in magazines.  I suppose you get what you invest for.  If
yer lucky.

The point has been made here before that there are many high-quality shareware
programs for the PC, and only a few for the Mac.  I want to write shareware,
but sure won't write it on a PC!  Still, you ain't seen any from me yet...
someday.

I think if you want to make lots of money on a shareware product, you should
aim to get it purchased by a large company.  Lots of them have not even heard
of shareware, and only know about virus-ware from what they read in the scandal
sheets.  If you can get a shareware program into a company, they are likely to
pay for every copy, so they can be assured support.  Many large companies make
their purchasing decisions more on the basis of support than what it can do
or what it costs.  Downtime is much more expensive than even commercial
software fees.
-- 
Michael D. Crawford
Oddball Enterprises
606 Modesto Avenue
Santa Cruz, CA 95060
oddball!mike@ucscc.ucsc.edu

Consulting for Apple Computer Inc.
escher@apple.com
Applelink: escher@apple.com@INTERNET#

The opinions expressed here are solely my own.

es2q+@andrew.cmu.edu (Erik Warren Selberg) (04/13/90)

well, from all the discussion here, I'd like to voice my views.  I'll agree
that most shareware authors will only succeed marginally -- shareware is more
of a "getting started" endeavor to raise capital/notice before going
commercial.  With my semi-mindless online games I'm more or less forced to
be shareware as it's such a niche product (albeit I could go completely
commercial with some policy wording changed).  I personally do the "crippleware"thing (a self-destruct after 14 days without a 2K file), and find it works
rather well.

However, I would like to mention one thing:  a shareware author shouldn't
expect to make fortunes from shareware.  There are exceptions, there are
good authors out there (for those on Fido, Pete Johnson really comes to mind),
but for the most part most shareware authors I've known usually created some
program for fun/something to do for them, decided it would be neat to show it
off, and attached a "shareware" label.  I'm not saying that they don't
deserve some compensation for using it, I'm just pointing out that many
products tend to be classified as "goodies" or semi-cusom software with
minimal support, which is a good reason shareware tends not to work.

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