Why you shouldn't give away your shareware for free
I've been approached by the MacAppADay folks asking me if I want to give away a mere 5000 copies of one of my apps, like, for no money. This is just wrong on so many levels that I feel compelled to write something in case any other Mac developers out there are feeling crazy enough to get involved in something like this.
1. Write cool Mac app.
2. Give it to some guy with a flashy website.
3. Don't charge for it.
4. ???
5. Profit
This is not a business plan, this is a recipe for killing your sales figures, pissing off all your users and generally going out of business and here's why:
Users expect support
The app might have cost them nothing to download, but it will cost you every time they get in touch with you because they've lost their serial or they can't figure something out.
People don't read the small print
So you've given away your app for free, but in the small print you've stated there are no free updates or there are some other limitations. Result = annoyed users who suddenly find they can't use your app any more because upgrading to Leopard broke it or they hit some other limitation. Users go and slag your app off on their blog and to their friends. Goodwill--;
They have no incentive to upgrade
You've given your app away for free once, why should they bother to pay for an upgrade when they can wait and see if you'll give them something else for free? If you don't then it's no skin of their nose, they'll just find another free solution.
It will piss off your paid customers
Not only are your paid customers now competing with hoards of people who've not paid for your support time and attention but they feel gutted that they paid for your app when they could have had it for nothing. Why should they pay you to upgrade in future if they think there is a chance you'll give your app away for free again in the future?
You're not Microsoft or Sony
Companies like Microsoft and Sony can afford to sell things at a loss and make money back selling add-ons like games and services - very, very few shareware developers, if any, can use this kind of business model. There is absolutely no evidence that any goodwill/advertising created by giving away your app for free to thousands of people will generate any actual return in terms of increased future sales. What's far more likely is that you'll undermine your future sales for months to come.
What's free today is free tomorrow
What you think because you gave away your app away for free for a day that people will suddenly pay for it tomorrow? No, tomorrow people will share it with their friends, stick it on Limewire and torrent sites and they'll continue to enjoy its 'freeness'. You gave it away free in the first place, it's hardly a difficult moral decision to give a copy to someone else now is it?
So dear fellow developers, before you jump on to someone else's profit making, marketing bandwagon, think about what the consequences will be for both your business and your existing user base.








31 Comments:
without freeapps you would not have samba or webkit so shut up and don't spread this kind of stupid things
Um I think you totally missed the point - I'm not talking about giving away open source and freeware apps for free - that's given. I'm talking about giving away shareware - commercial apps for free and why it's a lousy business decision.
Great article. I can't imagine why any shareware developer would participate in MacAppADay.
I agree with this, certainly. I take advantage of these offers as a user, but I agree that it causes many problems to a developer if they wish to start selling full licenses again.
Do you think Omni's recent choice to sell OmniWeb for $10 in November was a bad one, though? I get the feeling if you restrict your sales as much as they do, you do less harm to your product - unlike AppZapper or some other app that gets whored out every three days on Maczot.com.
suitcase: I'm sure someone at Omni did the math and decided that at $10 they could at the very least break-even and that the potential growth in marketshare was worth the lowered profit. It's also worth nothing they are a 'big' company as far as shareware developers go, they have some really solid, highly successful apps that make them a lot of money so they can afford to pull off a promotion like this to help an app that perhaps isn't selling as well as it used to prior to Safari and FireFox appearing on OS X.
I'd always thought it was a crazy idea, giving shareware apps away for free is a little insane.
Hey, you've got some good points.
I think that there is one way in which giving your app for free can make money, though: it's when it's in a competition!
Say, you've got a huge website that give like 50 licences of your app for free. I think it's then worth it with all the advertising it's gonna make you...
Yeah competitions can be a good way to generate a buzz around your product, but there's a big difference between giving away a few licenses and giving away what could easily be a years worth of licenses.
App Zapper gets given out for free cause it's got nowhere else to go. He probably figured the app as had it's day, he can't add much more to it and therefore may aswell give it away for free to hype up his other projects.
Regarding MacAppaDay, I just dont get it. I don't know how they've even got the balls to ask such a question. Why would anyone give away 5000 free copies of an app for nothing in return? what's in it for you?
I also have no clue what this means....
"we’ll give away 5000 copies of a popular mac application. Even if all the apps were only worth $5.00, that’d be $150.00".....
my math isn't great but I don't see how 5x5000 = 150?
Mark: As one user cannot, on their own, use more than one licence of an app, I think the $150 is meant to be the total value of software a user can get, i.e. 30 days × $5.00
Rory: I know exactly where you're comming from. If I'd had 5000 sales so far, even of my cheapest app, I would not be looking for full-time work! If any of my stuff ends up on there, it will be because I couldn't sell it and I have no plans to update it.
These giveaways, like on MacZot (which I think will disappear shortly) amount to disguised piracy. If people want buy your app they will. Giving away free copies in the thousands is only going to generate a support-headache from people who were never interested in your app to being with. Most users have never heard of these sites.
There is an exception and that is giving away older versions that you no-longer support; many companies do this. It costs nothing to you and if the users of these versions decide to upgrade, well bonus.
Of course, providing upgrade-discounts is another matter...
This post sums up everything I have ever wanted to say about things like maczot, macappaday, etc. Thank you for saving me the words. :)
As ever, you hit the nail on the head Rory. Great article.
People who want free applications get them. Piracy is alive and well in the Mac world.
Great post. The "pissing off (existing as well as potential) users" aspect is something that people don't think about with promotions like this. Users paying for software are paying for future services (hence the support and expectation of updates) and the give-it-away-for-free promotions doesn't change these new users' expectations though they got it for free.
Rory, is it possible to delete visik's troll? It really upsets the entire tone of the rest of the discussion here. He either didn't read your post or was deliberately trying to hijack it into saying something that you didn't say.
I must say that I disagree. I am not sure about MacAppADay but MacZOT and MacHeist worked very well for us. More on this here:
http://softwaretrenches.com/2006/11/give_and_you_shall_receive.html
I'm sure there are a few Mac developers who have success with such promos, especially for new applications with no following and few sales. 5,000 customers using your product for nothing may be a better start than no customers at all.
I suspect that's not the norm for Mac developers with a growing base of customers.
At Mac360 we recognize that Mac developers need some assistance and review many applications that would not receive reviews elsewhere. For the most part, we only review products we'd use ourselves, and pay money to use. Don't misunderstand; we love free bargains-- good apps that are valuable and don't cost a dollar. We love open source apps; those that are lovingly crafted by dedicated souls on a mission.
More than anything else, we love the Mac, Mac OS X, Apple and the community that uses Macs, produces great Mac software. Good Mac software deserves a price tag worthy of the value.
I'm sure there are a few Mac developers who have success with such promos, especially for new applications with no following and few sales. 5,000 customers using your product for nothing may be a better start than no customers at all.
I suspect that's not the norm for Mac developers with a growing base of customers.
At Mac360 we recognize that Mac developers need some assistance and review many applications that would not receive reviews elsewhere. For the most part, we only review products we'd use ourselves, and pay money to use. Don't misunderstand; we love free bargains-- good apps that are valuable and don't cost a dollar. We love open source apps; those that are lovingly crafted by dedicated souls on a mission.
More than anything else, we love the Mac, Mac OS X, Apple and the community that uses Macs, produces great Mac software. Good Mac software deserves a price tag worthy of the value.
as an user (for a looong time) of Opensource software and Free(dom) software upon linux/unix/osx I agree with the author of the blog
there are NOTHING common with free(dom) software, free and open from the _start_ AND commercial software
Free(dom) and opensource software are made by peoples using others means to gain their life (there are ways! it's just different choice, community works or different business model)
they can "give" it , because they model their development with THAT consideration
but now, a commercial developpers, he/she made others business choice. nothing wrong or good, it depends how you want to manage your business, the means you want to have to create an efficient and useful software and how to make a profit for it.
and yes when a commercial software, suddenly is "free", but there are still commercial intent behind, it's often a very "lousy" business decision.
people really need to ponders if their enterprise can afford that. not every kind of software allows to do a business of pure support or addons or whatever derivative ways of rentability.
you could tell me about Mysql AB or Trolltech as example of commercial society with success having major opensource (and free) products, but even there, you have to analyze what they really sell, how they were created and for what market. it's not your typical macintosh "little" desktop applications for users.
caution.
This email is spoofed?
Right?
Really. I got this recently and had to go back to re-read it, Does it really say?:
... ""This week's heist involves a famous unsolved puzzle from the underground Mac software cracking community. One of the community's most beloved members, "The Edge", announced permanent retirement from software cracking six months ago after years of service and hundreds of cracked Mac apps."
...
I'm done with it if this is real.
Subject: MacHeist #2 Has Begun
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Dear MacHeist members,
The second heist has officially begun, with the new and popular personal finance manager "Cha-Ching" and the browser integrated keychain utility, 1Passwd, as the week's two freebies.
"This week's heist involves a famous unsolved puzzle from the underground Mac software cracking community. One of the community's most beloved members, "The Edge", announced permanent retirement from software cracking six months ago after years of service and hundreds of cracked Mac apps. With his announcement notice, he left a puzzle supposedly leading to unlocked builds of two apps that have long remained uncracked: Cha-Ching and 1Passwd."
Continue the heist by viewing the mission briefing.
MacHeist Directorate
--------
"most beloved" ?
This can't be correct.
Giving software for free is just a stupid thing. It doesn't work in the long term for a small company. You only damage other developers.
As a customer, I prefer 30 or 60 day demos. I don't like to pay out $30 for a review and a screenshot. I think demos are a better marketing device than a price reduction.
C'mon - if you bought a $2000 mac, how important is a $15 difference? Yojimbo is less expensive than SOHO, but I'm not going to switch.
As a customer, if you want my dollar then offer me compelling functionality and strong support.
btw- Omni selling its product for $10 does make sense because they have a suite of software. If a customer has a good experience, they are more likely to by an upgrade or other suite component. (I bought Fission sight-unseen because Audio Hijack is one of the best products out there.)
Probably just end up pirating your next version too.
If an application is worth buying then people will pay for it, Textmate is a fine example. For some reason a hell of a lot of people moan and moan that its too expensive, but come on its really so powerful, so well written and the updates are so rapid that its practically cheap especially when compared to the inferior competition of Dreamweaver and BBEdit.
People who moan wouldn't buy it anyway even if it was $20, but the real audience who will pay for things are even telling the author that 2.0 shouldn't be a free upgrade because he deserves the money.
One massive mistake recently I think was Cha-Ching, you get users to pay for a disastrous beta, then give it away free later. The people who paid get pissed off paying for trash and the people who get it for free are just thinking "WOW glad I didn't pay for this its terrible "
visik's the only stupid thing being spread here.
Omni are selling OW cheap because they haven't made money off the product in ages.
Without MacZot and MacHeist (and I got Overflow free from MyDreamApp) I wouldn't even know most of this software even exists or that I actually need the apps in the first place. That's probably the biggest benefit of these places: creating a perceived need.
Let me give you a few examples. I've tried quite a few app launchers but always just reverted back to the dock and deleting without paying for, whatever trial shareware app I was trying out. Then I got Overflow for free from MyDreamApp. It's a great product and I'll gladly pay for any future upgrades. As I said I'd tried quite a few app launching utilities but had never come across Overflow. It's an app launcher done right and now I "need" it in my every day Mac life. KIT, Cha-Ching (I'm dumping Quicken for this one), and Keyword Manager are others that have become part of my daily workflow. Had I not come across them at MacZot, I never would have went looking. Didn't think I needed them.
I disagree that you won't benifit down the road. I freely recommend the apps I've acquired from these sites and as a result I'm sure I've helped sell more than a few copies at regular price.
Word of mouth is huge! If you make and give away 5000 copies of a good product, you will get that all back eventually, and more. It may take awhile but you'll benefit in the long run.
And BTW, I'll happily pay for the next upgrade of any app I bought (or got for free) on the aforementioned sites. At least the ones that I use and think are worth it. Give people some credit, were not all a bunch of whinny, give-me-some-thing-for-free, software pirates.
Sorry Rory, I think you're way off base here. Time will tell.............
If you've not heard of an app its because it wasn't marketed as effectively as it could have been - that doesn't make the case for giving it away for free, it makes the case for better marketing. There are plenty of ways to market software effectively without handing over thousands of free copies. MacZot is totally different to MacAppADay so its not really fair to lump them together.
As the saying goes, "the only thing free work ever got me was more free work." Any designer sure knows it's true. (See the no-spec movement.)
Then there's the old dictum that recipients of free work are the most demanding and ungrateful people you'll ever "work" with.
Imagine giving away xxx(x) licenses to people who see your app as having zero value (free = worth less) and figure you owe them something, and then some, simply for installing it.
Good luck.
When properly executed, a giveaway is an excellent way to increase a user base, potential upsell and market validation. Im not validating what MacAppADay does because Im not familiar with their value proposition in particular.
My company Proactive International (http://www.proactive-intl.com) has expanded the business of all sizes of vendors for over a decade. I've had a high degree of success in working with magazines to maximize the value of these kinds of actions. Build enough credibility and then you dont have to give stuff away all the time to get good coverage - I managed to get Paradigma Software's database (http://www.paradigmasoft.com), Runtime Revolution (http://www.runrev.com) and Daniels & Mara's Galaxy script editor back cover coverage on Beginning Programming for Dummies 4th Edition as a result, and as one example.
Giveaways can go wrong - no question about it - like any marketing action, it can be screwed up. But it can go right as well.
Hi,
I am a great fan of OpenSource. Being a developer myself, I have started a new internet project, which uses only open source tools. This approach allows me to concentrate, on developing my business but not on the code development.
Should all code be free? Perhaps, but then again we would not have Bill Gates...:) - Just a thought...
My take on commercial software is as follows - ALL Commercial Software should be free for personal use, and the software houses should be charging for Commercial use of the software. In addition developers would be making money by integrating various Coomercial packages. This is my take on the software world.
If anyone wants to take a look at my site, check it out here...
www.pissedconsumer.com
Or you can check out my blog right here
www.pissedconsumer.com
Regards,
Mike P.
It's ridiculous to say all software should be free, that completely destroys the market for all non-business software.
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