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Doug Nebeker ("Doug")
I am getting close to releasing my desktop software. Broadly speaking, I see two options for the sales transaction.
(1) Hook up with Stripe/Paypal and somehow deliver the software installer file and the license key myself after the financial transaction takes place.
(2) Go through payment processors like E-Junkie, Avangate etc. They seem to take care of delivering the file and key.
I would appreciate the advice of you experienced folks on which is the better route. The way I see it as of now:
Negatives of going with option 2:
(a) They seem to take a substantially bigger cut out of the sales. Given that this is a cut at the narrow end of the funnel, its impact is more.
On the positive side:
(a) They take care of delivering the file and license key. Is implementing that a big deal (I haven't done that yet; so don't know)?
(b) Some of them do provide some kind of anti-piracy scheme which I don't care about since I have implemented my own.
(b) They generally seem to support "affiliate marketing" schemes. Has such affiliate marketing helped you in practice?
Any other factor I missed?
Thanks in advance for your suggestions.
After looking around some more, I realized that e-Junkie is a different kind of service than the "full-service" payment processors like Avangate and Fastspring.
The following page I subsequently came across also has more info, though slanted towards game developers.
Avangate here, to help you with your decision.
We offer our expertise to Software, SaaS and Online Services companies, to solve the complexity of online commerce, subscription billing, and global payments.
Besides, taking care of delivering your products to the end-users, we offer you as well a portfolio of various payment methods, billing currencies, along with shopper support services for payment related issues via email & phone (geo localized with SLAs attached).
Please drop a line to our colleague: email@example.com and she will gladly help you with additional info related to our platform capabilities.
Wednesday, August 19, 2015
I use FastSpring and can't fault the service, which has been excellent for 3 years or so.
It costs a fair chunk more thank something like stripe (which I have also looked into), but it also does a lot more for you. A few things the FS does, that would be a pain to implement:
1. FS takes care of local taxes. VAT will be added at the appropriate rate and they will remit to the appropriate authorities.
2. FS will create your payment page.
3. Just generally, I am a little wary of setting up a payment page on my servers. I have cobbled together all of my website, but I don't know too much about that side of things. I would worry about security in particular, server uptime, data privacy laws with customer details etc etc - I don't need to bother with any of that.
4. As you mentioned, they do have affiliate programs that are easy to set up - its easy to give referrers a certain %.
5. Extra features such as coupon codes etc are also easy to set up. Of course you could do this yourself, but again its more work.
So for me it's worth it, even thought its perhaps 3% (or even more) over what a bare bones solution would cost. Maybe when that figure in $ hits 5 figures a year I'll look into it again.
You can do an A/B test. Suppose a service is 3% more expensive than a bare bones solution, but gets you 20% more completed purchases. No-brainer.
Thursday, August 20, 2015
We went with Avangate and so far it is going OK. Relatively easy to setup and tech support has been good. I wish the checkouts were a little more modern (like stripe) but they work and are configurable.
We wanted to go with Stripe due to the low commission but as we are in EU it was a pain to handle the VAT correctly so we took the easy option and went with a reseller that handles that properly.
If we grow big enough we will re-evaluate and go with Stripe + our own VAT solution/accounting.
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