* The Business of Software

A former community discussing the business of software, from the smallest shareware operation to Microsoft. A part of Joel on Software.

We're closed, folks!

Links:

» Business of Software FAQ
» The Business of Software Conference (held every fall, usually in Boston)
» Forum guidelines (Please read before posting!)

Moderators:

Andy Brice
Successful Software

Doug Nebeker ("Doug")

Jonathan Matthews
Creator of DeepTrawl, CloudTrawl, and LeapDoc

Nicholas Hebb
BreezeTree Software

Bob Walsh
host, Startup Success Podcast author of The Web Startup Success Guide and Micro-ISV: From Vision To Reality

Patrick McKenzie
Bingo Card Creator

Annual Report 2006

There's a tradition on some private newsgroups to provide an end of the year summary of sales figures.  The details there are for members only, so I'd like to kick off a similar theme here providing for anonymity.

Sales
2004: $3,231 USD
2005: $7,432 USD
2006: $15,112 USD

This is my 3rd year as a part time Micro-ISVr.  My Sales have come from home users in previous years, but this past year I launched a new application for both home and business users which is on track to provide further growth for 2007.  I'm just hoping to keep up the growth and go full-time in a few more years...
Another Micro-ISVr
Monday, January 15, 2007
 
 
How much is the cost of the software?  30-40$?  or 100+ ?

How many items sell?  How much marketing do you do?
Stucko
Monday, January 15, 2007
 
 
Alright. I'm not going to hide my identity. I'm just going to give ballpark figures instead.

Antair has been in business now for 2 years (Jan 10th was the 2 year mark).

Until September of 2006 (a few months ago), it was generating revenue as a consulting company only. September of 2006 was the first month the company began generating revenue from product sales only, so I will post my numbers in that context.

September 2006 - End of 2006 = about $7600.00 in revenue. This was from Printer Friendly, my book (which also goes through the company), adsense from my two websites, and some published articles (at around $1-2 per word).

So far, in 2007, from 1/1/07 - 1/15/07 -- a two week period, Antair had about $1000.00 in sales. I released the BlackBerry Spam Filter two weeks ago (1/2/2007), which has been generating sales steadily (one or two every day).  Printer Friendly has increased in sales as well.

Sale Frequency:

By the end of September, after 1 month "in business", Printer Friendly was selling at a rate of about 1 every 3 weeks. Stats for the book were not yet available.

As of now, Printer Friendly sells at a rate of 1 every 7-10 days.

The book sells at a rate of 9-10 electronic versions every month, plus 10-15 printed versions (Amazon, BN, etc), every month.

The Spam Filter (so far having been on sale for 2 weeks), is selling at a rate of 1-2 copies per day...with only one Sunday being a no-sale day.

I gave up on "common" forms of advertising, and I haven't done anything with Adwords for months. I can't set up a campaign for the BlackBerry Spam Filter with Google because they claim that "BlackBerry" is a trademarked term, and thus cannot be used, but if you search for BlackBerry software, there are many adwords ads featuring that word. I'm having "discussions" with them.

I've jut put in $10 into Overture just to see the response (yeah, I know -- a *ton* of money). But I've been doing very well with plain old Google and other search engine traffic, word of mouth (huge word of mouth references for Printer Friendly), and blog posts from other sites (a bunch seemed to have popped up for the spam filter already).

Umm...don't know what else you guys would be interested in knowing. Here are all the sites that are generating revenue for me aside from my blog --

http://www.BlackBerrySpamFilter.com
http://www.PrinterFriendlySoftware.com
http://www.WallStreetProgramming.com
http://www.96Bosses.com
http://www.GothamBiker.com

- Cheers
Andrey Butov Send private email
Monday, January 15, 2007
 
 
Thanks for all the information.  Wow.

About BlackBerrySpamFilter.com, aren't you worried about spending all this time branding the name only to have it shut down by the BlackBerry lawyers?

My experience with trademarks in Domain Names has been costly and ugly.  When I first got started, myself and others were using domains with a registered trademark in them.  I got a letter from the organization's legal department saying that we had to stop because the word is a trademark.  I had no idea that it wasn't a common word, but sure enough, it was, and it even said so in the dictionary.

This could result in having to change signs, business cards, hosting, marketing material.  Then all the stuff that's already out there leads to a dead-end.

I'm not a lawyer, and I don't know if what you are doing is against trademark law, but it might be worth checking in to.
Ben Mc Send private email
Monday, January 15, 2007
 
 
:) I'll cross that bridge when I get to it.
Andrey Butov Send private email
Monday, January 15, 2007
 
 
1st year $58k, selling to businesses, currently part-time. I use a company product name extensively throught my advertising and site, I've not heard any yet and not been stopped by google. Worrying thought though....hold on a mo, all my rivals do too and they're BIG, hmmmm not so worried.
Steve
Monday, January 15, 2007
 
 
2005: $35k
2006: $145k

Before anyone thinks I will be a millionaire soon by extrapolation, I spawned an industry of knock-offs and my sales have fallen since their peaks in 2006.  I know of 5 straight-up clones of my product and several more which are very similar if not straight-up, widget for widget clones.

This pisses me off.  I did the R&D.  I spent the sweat equity.  Everyone else is tearing scraps from the deer I caught and there's nothing I can do to chase them away.

My next product will focus on incorporating trade secrets that are not easily reverse engineered.  I made the mistake of being quite open and forthright and transparent about how my product works, which did nothing but accelerate the clones.

And no, for dozenth time I am not linking to my site nor telling you folks exactly what it is.  You are not potential customers, only potential vultures.  No offense.
Robert
Monday, January 15, 2007
 
 
I love this comment and it really does hold some truth.

"You are not potential customers, only potential vultures."
-Rob
Monday, January 15, 2007
 
 
2003 - $564
2004 - $16840.34
2005 - $520336.41
2006 - $77488.64
Anon for now.
Monday, January 15, 2007
 
 
Well 2005 should be 52036.41 not that figure above.  I wish.
Anon for now.
Monday, January 15, 2007
 
 
Robert, I have to say, we will find out what your product is.  In the end, vultures always get their picking.

To the vultures, cool annual reports!
GonnaSmokeEmOut
Monday, January 15, 2007
 
 
Sales at $2,500 +/- 2% for 2006 (I don't have my schedule C on this computer and can't be bothered to go get it), and I declared profits of $1255.  I'm shooting for $10k in 2007 from Bingo Card Creator and haven't done sufficient work on my second project to have a number for it yet.
Patrick McKenzie Send private email
Monday, January 15, 2007
 
 
2001 - $ 3,000
2002 - $ 4,500
2003 - $ 6,000
2004 - $ 8,500
2005 - $18,000
2006 - $82,000
2007 - $ 5,000 (so far)

I introduced a new product in 2005, and it hit version 2.0 (i.e. polished and better features) in 2006.  Also hit 1st page of Google in 2006, and worked hard on polishing the website.

This is a B2B app, average purchase price of around $250.  There are BIG players as competitors, as well as open source.

Persistence is the key!
anon II
Monday, January 15, 2007
 
 
Great thread. I started selling my product in 2006. I use CPC (Adwords, Overture, MSN) for marketing. Product price is over $200.

2006: Sales $33K / Profit $23K
2007: Project sales of $86K but who knows
Anon
Monday, January 15, 2007
 
 
Well, Im the new guy on the block so my data means nothing. I started selling two months ago. I use Google AdWords and Yahoo Search Marketting. Im not 100% convinced its any good, but Im small time paying maybe $100/month on this type of advertising.

My first product is GPL freeware version of the full web software, so allot opf people playing with my product right now (and Im sure allot of people cloning it). You cant stop the vultures, Ive found...you have to use your innovation to inspire, and your code and work, if popular among many, should draw developers and others to your product (thats a theory...)

Ive got maybe 4000 downloads of the freeware in two months and three sales. I can tell you even though Im the newbie, there was nothing as exciting as seeing that first sale appear in my inbox last month. WOW!!!

I just hope I get luck enough to get to the numbers Robert is seeing.

BTW..I'll take the persistance advice to heart!
A Newbie
Tuesday, January 16, 2007
 
 
2006: $0
2007: $0

Now I go full time!
IllGetMeCoat
Tuesday, January 16, 2007
 
 
2006 (my first year selling the stuff; initial commerical release in June ): $1,650.84

My market is the Mac. My marketing program consists chiefly of releases on VersionTracker and MacUpdate, news releases to MacNN and MacMinute, and listserv postings (my best-selling app, a GUI for a popular command-line tool, is the only one in its niche). Apple's download site has listed a couple of my apps, though not all of them, and that has led to some increased downlaod traffic and sales. I don't use Google Adwords--the Mac market is small and focused enough for the channels I use to be effective.

I would like to see more sales in 2007. Toward that end I am developing a companion app to my best-selling one. After that I will have five apps in release, and will begin updating/enhancing each one, trying to grow sales as much as possible. I'm hopeful I can grow to $10,000 in sales in 2007.
Mac Anon
Wednesday, January 24, 2007
 
 
2003  $152k
2004  $181k
2005  $207k
2006  $229k

This is for several products, all of which we own. So our expenses are fairly low.

(Some companies report nice sales figures but ommit the fact that thier margins are paper thin and that they're just reselling stuff with a 30% markup).
Anonymous this time
Wednesday, January 24, 2007
 
 

This topic is archived. No further replies will be accepted.

Other recent topics Other recent topics
 
Powered by FogBugz