Nico, thanks again for dropping by HaraMain9 today and sharing some insight into your expertise with our readers. I know you are a busy individual, so I’ve got just a few thought provoking questions our inquiring minds would love to pick your brain about the software industry…

Q. Could you give our readers a quick rundown on your entry into the software market?

I started out as many Independent Software Vendors do by creating a few applications over some late nights and long weekends while working a day job. This was way back in the original dot-com bubble and I soon found that I could quickly put together a website and get my products sold online, and my day job of website design really helped out with that part of it. Over the years I kept on adding products to Iconico.com, including the Screen Calipers, which is a handy measurement tool that still sells very well.

As I made the leap to working full time on my business I quickly realized that the software authors had a very hard time marketing their own software and that there were a great many excellent applications out there that were simply not being seen by users who would surely purchase them. Talking to fellow software authors in the Association of Software Professionals (asp-software.org) Newsgroups I realized that this problem was pervasive, and despite many good efforts, software authors were having a tough time. That’s why when I had the opportunity to purchase BitsDuJour.com over three years ago, I jumped at the chance. I saw it as the perfect platform to give great applications the visibility they deserved.

Q. BitsDuJour has been called the Groupon of software promos. Could you tell us a little more about its overall goal and rise to fame?

BitsDuJour is a deal-of-the-day site for PCs, and now more recently Mac software. Every day we offer one or more software applications at a steep discount to our loyal fans. Part of BitsDuJour’s success is in the way we structure the relationships with our software vendors. Unlike most others we’re not a reseller, so that means for the software vendor we use their existing shopping cart, and forward our users on with a coupon code that is automatically applied. Our users like the arrangement as they will get all the usual upgrades and service, and for our vendors it’s easy to set up. For us it’s harder work! There’s a lot of configuration and administration in getting things set up, it’s several people’s full time job just to keep it running.

Over the years the BitsDuJour community has really grown. Part of this success is down to the “Conversation” that you’ll see on every deal. This isn’t just a plain old comments board. What we have is a back and forth chat going on between users and the software vendor, where users can ask questions, report bugs, and get clarification on every point before they purchase. Many users purchase simply based on how responsive a vendor will be, and we’re glad that we can open up that channel of communication, it’s something you rarely see in the software space.

Q. Where do you see the software industry in 5 years?

Well that has to be the toughest question here! The obvious answer is the continuing rise of social networks and their ability to be used to market software, but that’s already happening right now so it’s not much of a prediction. One recent development that I can see changing the game in the long run is the rise of App Stores.

Android and Apple lead this in the mobile space and it’s a real game changer there. Simply having user’s information so they can make a single click purchase or even micro-payment is a huge change from endless form filling and credit card entry. The ability to have a captive audience who can only purchase apps from one storefront is really stunning, I’m surprised that there have not been more lawsuits! Apple can charge 30% fees on every sale, which is very high compared to using an e-commerce provider like FastSpring, Avangate or Plimus to take payments as they typically charge less than 10%. Yes the App Stores provide more value, there is a vetting procedure and they bring users to your software too.

Apple’s new App Store for Mac has been out for a few months, and Windows 8 is rumored to have a similar store, although recent leaked screenshots of it have turned out to be fake. Microsoft tried a few years ago with it’s Digital Locker, and ultimately closed it down. Apple has always had much tighter control over it’s OS and hardware than Microsoft has, so it’s a harder job. It’s worth remembering that part of Microsoft’s rise to power came from the ease of producing business applications with Visual Basic and Access, which meant that everyone simply had to get a PC at work. I’m sure Microsoft has not forgotten about this, and they continue to be very supportive of their developer community, but if they can finally build an App Store that works for both developers and users I think that’s a huge game changer and could dramatically change the software landscape for developers and everyone involved in software marketing.

Q. What is one tip you could provide an independent developer or struggling software firm to stay the course and see their product succeed?

Yes there is one mistake that I see small firms make again and again and that’s this: They don’t talk to their users. By this I’m not referring about dealing with customer support issues, we all have to do that. I mean actively engaging with people who have either already purchased your software, or plan to do so.

The easiest way to do this is a monthly newsletter, it’s easy and cheap to do and can help turn your happy users into advocates for your products, especially if you start giving out free coupons for them to share with their friends and giveaways or prizes, mixed in with your news about the next great product update!

Facebook fan pages and Twitter accounts are also cheap and easy ways to get your brand name to your customers on a regular basis. Again regular updates and the odd discount here and there can help to build a brand. It’s not going to happen overnight, any following takes time, but a well spent afternoon once every couple weeks can certainly start to change things for small companies and open up new opportunities.

Learn more about Nico Westerdale and BitsDuJour!