April Stats

(Images in this post may be truncated by Wordpress.  Click to see in a new window.) 

Oh, yeah, April happened.  The capsule summary: week-long holidays like Easter hurt like crazy — I had exactly one sale during Holy Week.  We’re also fast approaching the end of the school year and I can feel orders slowing down quite a bit from their usual clip in May, so I wouldn’t expect awesome times ahead.  On the plus side, I’m guaranteed to continue covering costs and will probably eek out enough profits to continue bankrolling Kalzumeus.

Sales: 26 (no refunds, 4 CDs — memo to self, find out why those aren’t selling well anymore)

Gross Income: $668.70

Expenses:

GoDaddy: $7

E-junkie: $5

CrazyEgg: $9  (technically only a sliver of that is in April but, eh, who’s counting)

Paypal: $12.50

SwiftCD: $30.56

AdWords: $61.01 

Total Expenses: $125

Total Profit: $544

Traffic-wise, things were all over the map.  My numbers on Holy Week declined almost as low as they did during the Christmas vacation.  I’ve been trying a few things with AdWords (you might notice from the higher expenditures), some of which worked and some of which did not.  (Advertising directly on a competing site did not.  Constant improvement on the main campaign did.  Content network did, to my surprise.)

Rather than spending time copying numbers by hand from Analytics I’m going to be lazy and just paste what it shows me for the month.  For those of you unfamiliar with the interface: G1, G2, and G3 refer to configurable goals and the percentage of visitors from a particular source who complete them.  In my case, G1 is purchasing something from me (note this understates my actual number of customers by 50%, due to some issues people seem to be having with reaching the page that tracks this), G2 is downloading my trial, and G3 is confirming the installation of the trial (by requesting an update for it). 

Conversion Rates by Source for Bingo Card Creator

I generally make most of my decisions based on the G2 column (i.e. free trials downloaded).  The reason for this is subtle: if a person comes to my site, downloads the trial, closes out of their browser, then runs the trial, and later conversions (such as a purchase or check for updates) typically get filed under “direct”.  They typically use the link in the application to arrive at my site, and from Analytic’s limited view of the world thats the same as typing www.bingocardcreator.com “direct”ly into your browser.

As you can see, my most promising prospects are the ones I get from AdWords.  Organic traffic from Google is the largest segment of my traffic, accounting for about half of it, but their conversion rates are pretty poor.  That is unsuprising if you look at what people are searching for when they get to me — typically I perform fairly poorly in terms of conversion rates on the high traffic queries like “bingo cards” and very well on long tail queries like, well, why don’t I show you some:

Popular Organic Search Terms for Bingo Card Creator

In a very Long Tail-esque moment, I get about 30% of my Google hits and trial downloads from the top 10 search terms.  Its 3:30 AM so I won’t do too much math on what the breakdown is for midlist search terms versus the Long Tail shown above, but my naiive guesstimate is that probably one third of my downloaders are from the top 10 search terms, one third are from less common but still fairly popular search terms, and one third are looking for a phrase that only exists for them.  I could show you pages and pages and pages that look like the above image.

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Heh, Amusing New Link

Waaaaay back when I was deciding what to call the program that eventually became Bingo Card Creator I looked into the possibility of calling it Teacher’s Pet.  I have since learned about good practices for naming B2C software and that idea strikes me as extraordinarily silly now.  Luckily, I was prevented from actually calling it that by folks owning all the obvious domain names, including www.teachers-pet.org .  I then looked at Bingo Card Maker (taken, rats) and then settled on Bingo Card Creator.  I forgot totally about teachers-pet.org and then got a blast from the past today reading the logs — a decent sized trickle of users coming from them.

Apparently despite the PR2 they’ve got quite a number of regular users, because they put up a link to me about a week ago and its getting fairly steady traffic at about the same level as my AdWords campaign, and converting pretty well, too.  (14%, just a few points off organic search traffic)  I didn’t have anything to do with them putting up the link but, hey, I’ll take it.  Its always nice when folks take time out of their day to do your marketing for you.

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Quick Update On New Icons

It appears that the new icons I developed are having mixed results.  About 1% less people (9.5 -> 8.5) click on the download free trial button, although the overall conversion has stayed constant since the textual links are picking up the slack.  2% more people (1 -> 3) are clicking the Buy Now! button.  I’m not entirely sure whether that is a result of just the redesigned buttons or the result of changing Purchase Now to Buy Now! but either way, what can I say, I like it.  Hope it keeps up.

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Why Your uISV Should Have A Blog

My post on Free Bingo Cards, which is two months old, received a hair under 1,000 hits in April (thats three days worth of weekday traffic for my website — not shabby!).  This resulted in ~100 trials of my program and 5 sales, or roughly 20% of my sales for the month (full monthly stats to follow sometime this weekend).  And the kicker?  That post is an evergreen — it never goes bad.  It continues to pick up search engine hits, links, emails to friends, yadda yadda, and keeps making me money.

One more big thanks to everyone who linked it.

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Out With The Old, In With The New (Buttons)

I have been thinking of how to create application buttons for Kalzumeus in a pretty Web 2.0-ish style and, on the recommendation of several BoSers, bought Axialis Icon Workshop.  To test it out, I decided to redo my sort of frumpy Buy Now! and Download Free Trial buttons for Bingo Card Creator, and see if the new versions aren’t any more successful.  While you can of course see them at the best place to get bingo cards for teachers on the Internet, I’ve isolated the section of the interface so you won’t even have to click off this site:

The Old Buttons (Created in Paint.NET using an open source button as base)

The Old Buttons At Bingo Card Creator

The New Buttons (Created in Axialis Icon Workshop, using their Web 2.0 Objects Pack, with cropping and resizing in Paint.Net)

New Buttons

(Edit: GoDaddy seems to be undergoing maintenance or something.  If you’re getting slow as heck performance grabbing those images, that is also affecting my website proper.  Yay.)

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I Love It When People Fix My Problems

One feature that I had in mind for the 1.1 release of Kalzumeus (does it even make sense to have a 1.1 version of a webapp?  Well, you get the general drift) was the ability to send a real, honest-to-God postal mail in an automated fashion.  It is a requirement with legal significance for some of my customers, and all of my customers would see the ability and go “Oooh, that would save me so much hassle”.  I have been searching for a good way to do this for a while.  Obviously, doing it myself would transform me from a highly-paid software developer to a low-paid postal clerk, which is frankly stupid when there are plenty of businesses out there which offer ways to do it without ever having to lick a stamp.

I was originally planning on using the Post Office’s API.  They have a service called NetPost which is aimed at direct marketers.  The prices are pretty high for one piece ($2.25 or so) but reasonable if you’re sending hundreds, I guess.  I used to use this any time I needed to send a letter to America which didn’t need a physical signature on it, since it costs about the same as sending a letter internationally and gets there a week earlier.

However, cost issues aside ($2.25 is dwarfed by the number of sales this will get me, and I can probably charge extra for it for customers who use it on a regular basis), I really hate having to learn another API.  It is one more thing that can go wrong with my application, and the consequences of a letter not being sent when my app reports it sent are rather severe.  Then today I ran into a site called Postful, which has a much more convenient interface — send them an email, they send out a letter.  You preload your account in advance and after that its $.99 a letter for one page, which is where all the letters I’d be sending are.

Composing an email to my requirements is trivial, since I already have the exact same functionality elsewhere in the program to deliver this notification via email.   As a result, this will probably get into the 1.0 release of Kalzumeus.

As an extra bonus, I can now save myself $1.25 the next time I have to send out a letter to the States.  Yay.

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Kalzumeus Hits 25% Feature Complete

Well, OK, thats a little optimistic.  Its certainly 25% *feature* complete but its not 25% of the way ready to actually have users.  The interface still needs to be integrated, for example (I have functional skeletons up for most of it but they are too ugly to ever show to people, even if they do have the right form elements on them).  I plan on going public with the problem when I hit 50%, which might be as early as next week considering I have three days of it off.  Its Golden Week and this year instead of taking a well-deserved vacation I’ll be coding and writing resumes, bleh.  With a day trip out to a hotsprings or something… far, far away from a computer.

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Busiest Day For Customer Support Ever

I had not one but two issues that couldn’t be taken care of in a five minute email.  Oh no! 

a)  One customer still hadn’t received her Registration Key despite getting the automated email, emailing me about this yesterday, and getting a handwritten email from me yesterday.  Luckily, her signature included her voicemail number, so I left the voicemail.  Ahh, shades of my old job. 

b)  One customer hadn’t received their CD yet.  A quick check in SwiftCD showed that it was sent on March 29th.  Ahem, “oops”.  I mailed them to confirm their address (customer error in the input field is the #1 cause of non-delivery, by far, so any time you get a report of non-delivery you should suggest in a non-confrontational way “Could you just confirm your address for me so I can send this out?”) and will be FedExing them a new copy as soon as I receive it.  (Yes, at my expense.  Yes, that will eat up most if not all of the profit from this order.  Shipping bloopers fall into rounding errors in the greater scheme of things and you earn so much customer goodwill by addressing them promptly at cost.)

Speaking of which, I realize that I completely flew past my April 15th stats update.  Don’t shoot me, my birthday is April 16th, which after adjusting for timezone issues means that I was karaoke-ing until the break of dawn when I “should have” been telling you that sales for the first half of the month were crushed by Easter.  They’ve since picked up (not up enough to hit my $1,000 target, probably up enough to make a new record), and I’ll tell you the exact stats on the last day of the month.  Or thereabouts.

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Ca-ching

Sales for 2007 just passed sales for 2006.  Profits are better than double due to not having to pay startup costs twice and smarter spending on AdWords.

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I Do Not Normally Carry Press Releases…

… but I got an email today from a chap named Marco Bellinaso.    It sounded suspiciously like a press release, although fairly well adapted as an email saying “Hey, could you do me a favor and blog about me?”  Normally, I’d say “This is spam” and be rather miffed.  However, he at least went to the trouble to get my name right and connect the sales pitch tangentially to my main concern (pleasing my readers, who he correctly identified as prospects for his service), and he’s a uISV himself, so I’ll charitably overlook the unsolicited nature of the email and comment on the product.  Unfortunately, its not going to be a very positive comment.

The product is www.bytecommerce.com, which is another service for selling digital downloads through Paypal.  The feature set is fairly similar to Payloadz, e-junkie, and the rest of the gang — uses IPN, has expiring download links, supports license keys, yadda yadda yadda.  The interesting part of the pitch, which Marco Bellinaso seems to think is his competitive differentiator, is the pricing structure.  This should set off alarm bells in your head: “Uh oh, trying to compete with established firms only on price in software is kind of suicidal.”  But, hey, money is money and I have certainly made the decision on what e-commerce provider to use with money concerns playing prominently in my calculus. 

So here is their pricing scale: you pay Paypal fees, obviously.  Then, instead of paying a fixed monthly fee (e-junkie), a variable fee based on the amount of sales you have (Payloadz), or a commission (the Digital River companies et al), you give them every 20th sale in its entirety.  That logically works out to a 5% commission if you sell only one product, plus Paypal.  That would be, oh, $30-40 a month for me if you averaged it out.  This could potentially work out much better (or worse!) if you had multiple products, and we’ll ignore the fraud case where you put in a 1 penny item and “sell” it to yourself or a confederate for every 20th sale because thats incredibly dishonest.

So, yep, innovative pricing structure.  The problem?  Well, I don’t choose business partners based on innovative pricing, I choose them based on cheap pricing, if I consider pricing at all.  If my choices were Payloadz or the “traditional” shareware processors or this I would strongly consider switching (holding services available equal).  However, there is e-junkie.  $5 a month is less than 5% of gross sales for any number of gross sales greater than $100 a month, and thats been me since the second month I was in business.  So this might work well for someone whose side business is more of a casual hobby for them (well, even more of a casual hobby for them), but I can’t really recommend it based on price to anybody else.  And since apparently the pricing is the sales pitch, well, I have no reason to take a look to see if they can match e-junkie on a features comparison (which I’m going to assume is a no, since they apparently just launched). 

Here’s another non-trivial implementation worry: there is no convenient way to refund a credit card charge made by a third party to a third party (not a shocker, that).  Supposing I were to sign up for this and then the 20th customer asked for a refund, I’d be up a creek trying to get them money, rather than just clicking two buttons on my Paypal interface.

There are a trio of lessons here for other uISVs: number one, its a tough row to hoe when you try to compete on cost despite not actually being less expensive than your competitors.  Number two, “We’re the cheapest!” is only a competitive moat to the extent that you have some sort of structural advantage that will let you always remain the cheapest, like Wal-Mart does.  Number three, pricing is not good ground to pick a fight on in selling software (or software as a service, which is essentially what e-junkie et al are — you’re renting a Paypal IPN script on a monthly basis).

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