Approaching the Market: Transaction
Handling the transaction in which you exchange software for payment can be done in a number of different ways. There are a few entities that can help you accomplish this task and they provide differing levels of support that extend into the Install, Registration, and Updates areas as well.
You can do it all yourself too. You will need to consider the cost of constructing a transaction-based web site for handling this as well as implementation time. Purchasing hardware, software, appropriate net bandwidth, and hiring administrative personnel should not be underestimated. By our rough calculations, you'll need about $350K in sales before you'd start saving money over using a third party online transaction partner.
The companies and organizations, mentioned earlier, that provide online catalogs also provide support for completing the transaction.
As mentioned before, the BeDepot is dedicated to promoting and selling BeOS software. BeDepot focuses on commercial and shareware software and provides the following:
- 24 hours a day / 7 days a week availability
- Accepts and pays merchant card fees (Visa, Mastercard, JSB,
American Express)
- Currency Conversion - Developers receive one check at the end
of the month for all worldwide transactions. Payment can be made in publisher's
local currency.
- Will pay all applicable sales taxes in any country
- On-line catalog
- Will handle registration
- Will distribute unlimited updates to the developer's applications.
- Will distribute demonstration copies, time trials, and light versions of commercial software.
The cost associated with BeDepot is 15% of the transaction revenue.
StarCode produces two products that aid in the distribution, installation, registration, and update of software. PackageBuilder is an installer that allows developers to create custom installations for their software. SoftwareValet aids in registration and updates.
Kagi is mostly a 'payment processing service' that began as a means for shareware developers to more easily collect payments, but since has expanded to include some commercial software. Kagi maintains an area specific to BeOS software and provides a web site form through which end users can pay for software. Be Developer Jim Moy has written a BeOS version of the Kagi register application that can be distributed with applications. Credit cards (Visa, Mastercard, and American Express), online credit entities (First Virtual and Invoice), and many different currencies are accepted. Authors are paid monthly in their local currency.
Kagi differs from BeDepot in that Kagi is limited to only transactions and only offers download capabilities at an additional cost. The author must find another place from which potential customers can download software. In addition, Kagi does not offer any services in the areas of registration and updates.
The cost associated with Kagi begins with a flat 6.5% of revenue fee. However, this does not include any credit card fees which are added to the flat rate. The typical rate for Kagi is generally between 10% and 13% of revenues.
Software.net falls somewhere in between Kagi and BeDepot. While it offers
an online catalog, handles transactions (Visa, Mastercard, and American
Express), and provides download capabilities, it does not provide any registration
or formal update services. Software.net does provide support for trial or
light version of some commercial applications. In addition to electronic
distribution via the Internet, Software.net will take orders via
phone and ship shrink-wrapped products by ground and air. Software.net
does not currently provide a separate area for BeOS specific software.
The cost associated with Software.net is twofold. First, Software.net offers
products at 10% to 20% off suggested retail pricing. Since "suggested
retail pricing" is suggested, you can adjust your suggested pricing
accordingly. After this, Software.net keeps 45% of the revenue from products
sold through the web site. Finally, there is a cost to list software with
Software.net which is as follows:
- 1-5 products: $250 per product
- 6-10 products: $150 per product
- 11+ products: $50 per product
Approaching the Market Index
