Hideho, Readers of "Neat New Things"

I’m glad you found the article on customer service interesting.  Feel free to leave comments on it, or here.

Note to usual blog readers: Neat New Things is a newsletter sent around by a librarian named Marylaine Block who runs a little side business on the Internet.  I’m going to take a wild stab in the dark and say you probably haven’t heard of it.  My site was listed for the customer service article from a while back, with the comment “Both the initial article and the comments provide valuable ideas and perspective.”, in the middle of about a dozen links about various topics.  Now, personally, if I wrote a post with about twelve links in a row like this one I would guess perhaps 1% of the readership would visit a link in the middle.  Given that literally one thousand readers (!) have come to take a gander at that post over the last 24 hours, most attributable to that email newsletter, I would estimate that librarian’s reach at probably in the high five to low six digits worth of extraordinarily dedicated readers.

Ponder that for a moment.

I’m going to take a wild shot in the dark and say that my post probably caught Ms. Block’s attention after it was mentioned on Librarian in Black, a high traffic librarian weblog.
Librarians, like school teachers, are quite smart folks who are not typically described as being on the leading edge of the technology curve.  However, apparently there are an awful lot of them out there, and they have their own little pocket of cyberspace which is actually not little at all.  They are an addressable audience on the Internet (or somebody wouldn’t have a mailing list of five or six digits worth of them, least of all one which is read actively), they read blogs at least part of the time, and they almost certainly have problems which can be solved by software.

Two takeways from this:

  • Do you have a blog that 1,000 potential customers of your software could be reading tomorrow?  If not, what exactly is keeping you from writing one?
  • Would you have written librarians off as a potential niche for a uISV, because they probably don’t buy software anyhow?   Often uISVs have a mindset which is overly informed by being quite techy people, and they forget that the rest of the world uses computers, too.
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Dipping My Toe Into Squidoo

Having nothing to do tonight after a drinking party for work, I was inspired by a post on MyMicroISV about Squidoo.  I have recently been trying to accomplish some light organic linkbuilding for SEO purposes.  That reminds me: a big, somewhat belated thank you to those in the uISV community who tossed me links to my post on St. Patrick’s Day — St. Google is already smiling on me for some keywords.   Squidoo might prove useful in that regard, and was as good a way to spend 2 hours as anything.

In a nutshell, Squidoo is a content engine which is similar to Wikis and blogs.  Anyone can contribute their knowledge on any topic, like a wiki.  Knowledge is organized about discrete topics, like a wiki.  However, like a blog, Squidoo lenses have authors, and the lenses are not by default writeable by the entire world.  They do allow for some forms of audience participation, through some interesting widgets which you can include to make your lens something other than flat unformatted text.

Anyhow, given that Squidoo lenses seem to percolate to the first page of the Google SERP for less competitive keywords and that its quickly becoming an authority site, I thought I might as well take it for a spin.  Plus, whats the worst that could happen?  I spend an hour producing materials that help teachers and don’t get paid for it.  That strikes me as an hour well-spent. 

Squidoo is a wonderful technology for Seth Godin and, well, somewhat less wonderful for its users.  In many ways, its a technical marvel — allowing users pre-constructed, logic-intensive building blocks like lists of links which are votable up and down lets them create valuable content which is richer than your typical blog post or Wiki article.  However, its also a poster-child for Why AJAX Will Not Replace Your Desktop In 2007.  Tasks which are simple and which should be on the critical path for this tool, like writing text in paragraphs and then editing the text, are full of frustration.  The responsiveness is sluggish compared to any halfway decent blog software and far outclassed by Notepad, to say nothing of useful text editors.  I felt like I was spending as much time struggling against the platform (2500 character limit for paragraphs?  Bad programmer, no twinkie!  No, it is not an acceptable workaround to tell me how many characters I have left!) as I was creating content.  That perception was probably inaccurate but it doesn’t bode well for the tools’ adoption with less motivated users.

Anyhow, rather than bury you in a description of what widgets are available, I’ll link you to a lens or two.  My lens on teaching dolch sight words is fairly basic: text, lists, and a widget which lets you vote on links related to the topic.  I have handily preseeded it with two links controlled by myself, which is the payload of the entire lens for me.  (I suppose if my lens gets very popular theoretically I could make about a dollar or so in Squidoo’s quirky revenue sharing arrangement.  Yay.)  The lens is not quite complete yet, and its very text heavy and content focused.

On the other hand, Gavin’s lens on tools for your microISV is basically just a collection of links.  Some of the more popular lenses mix links, text, and whatnot in a pretty multimedia fashion.  Unfortunately, and I really hope Seth Godin is not suprised by this although something inside said he might be, most of the lenses on top of the popularity metrics are Repair Your Credit And Make Lots of $$$ Online With No Money Down with a very high shady factor.  I’ll spare you the links, but feel free to take a gander at them: many of them are fairly effective marketing and I’d be decently happy if they weren’t in the service of separating poorly informed people from their money.

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"Thats Funny, No One Has Bought a CD In Weeks"

I’ve had my best month of sales ever, but only 1 CD in that time.  Typically about half of my customers get the CD.  I had a vague feeling that there were fewer CD orders than usual this month but it didn’t raise any flags with me.  Then I got a fairly typical email saying “How do I purchase your software?”  Thanks for your interest, click the big red button which says Purchase Now.  “That doesn’t say it comes with a CD.”  Thanks for your continued interest, you need to click the one next to the text Purchase a CD.  “That doesn’t work.”  Thanks for your continued interest, you need to… oh, wait.  It actually doesn’t work. 

It seems that when I switched the item numbers in e-junkie (to accomodate SwiftCD integration) I forgot to also switch the item numbers in the e-junkie links on my page.  For some reason this actually didn’t cause a problem for at least the first two weeks.  It had to be working for one of my customers to get an order for a CD through on March 3rd.  At some point after that the e-junkie system began saying “Oh, wait, the item number that link references doesn’t exist anymore” and bailing when you tried to use it to add things to the cart.  I assume that most of my customers who saw this error either shrugged and said “OK, I’ll take the download!” and some, more worrisomely, probably left.

This is one of those bugs that just makes me want to die inside as a programmer.  The systems involved have well-understood interfaces but the inner workings are complex and totally opaque to me.  As a result, bugs are hard to predict except by seeing them, and if their visibility is obscured by whatever system interaction happens its likely that I’ll be the last to know.  I guess the only solution to that is regular monitoring and applying enough concentration to know when the process is out of control. 

As long as I’m on the subject of CDs: if you’ll excuse my own HTML coding errors, the integration of SwiftCD and e-junkie has been flawless in every respect.  Its also cut the amount of customer support I had to do literally in half — back when half of my orders were CDs I spent as much time retyping addresses and invoice numbers into cd-fulfillment.com as I did answering customer emails.  Now delivering a CD takes as much marginal work as delivering a registration key: nothing.  Granted, at my level of sales thats probably 5 minutes saved 3-4 times a week, but for some reason minor repetitive nuisances like that grate on me far more than their absolute time required would suggest.

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Market/Pain Selection for Kalzumeus

(See the directly preceeding post if you’re wondering what the heck a Kalzumeus is).

I have a bad habit of becoming fascinated by any system which is sufficiently complex and wondering how to do it better.  Baseball statistics, for example.  I really do not care for baseball.  The activity does not interest me, the sport bores me, and aside from a cultural imperitive to root for the Cubbies in my family I’d be completely ignorant about it… but I own a book about Sabermetrics.  Forget the game, that stuff is interesting.  I collect wee little obsessions like this as the time goes by, and generally write down my ideas in a notebook, and after two pages or so I get bored and nothing new goes in about that subject.

I decided at some point that I was going to actually make a go out of the uISV thing as, eventually, a full-time occupation.  I’m not exactly sure when I made that decision — when I rolled out Bingo Card Creator I was definately thinking “Amusing hobby, expected shelf life 6 months or so”.  Now I find myself considering potential job offers in the light of “Can I easily transition from this job to full-time self employment in 2-3 years?”  Regardless of when exactly that change happened, since then I’ve been adding things to the notebook with an eye towards obvious connection to money.  The general idea is that it is far easier to justify someone paying you $250 if you save them $2000 than it is to justify someone paying you $24.95 if you save them $10-15 a few times a year (which is one of the pitches for Bingo Card Creator).

I chanced upon a particular investment opportunity when reading the Motley Fool and was quite taken with it.  Not that I had any interest in doing it myself (see: baseball), but it is extraordinarily popular in the United States — millions (!) of people are actively engaged in it, and they are all investors and as such have money to spend.  There are many, many niches in this field, and many, many problems faced by these niches.  Some niches have Big Problems which get literally millions of dollars applied to them by Companies That Solve Big Problems And Have Capitalizations To Match.  However, a couple of the niches have problems but the solutions available are, well, not so great.  Many of the solutions involve calculations on paper, elbow grease, and very expensive professionals doing things that could be done by a trained monkey with a slide rule.

I picked one particular niche, where small businesses or individuals are working in this investing field, and picked one particular high-value problem they have.  There are companies which will offer to solve this problem already, but which use a far different way than the web application I am developing.  In general, their methods scale very well for the user but have prohibitive startup costs and, as a result, they really don’t encourage (or sometimes even accept) business from the smaller fish.   This results in most small businesses or individuals not using these services, instead preferring to fix the problem by themselves, and then complaining about it to anyone who will listen on their forums.  Ahh, music to my ears.  As a plus, there are at least twenty companies who all appear to be making a living doing different variations at different price points of the exact same thing.  That spells fragmented market, and as Ian Landsman once commented fragmented markets are the uISV’s best friend.

I am slightly worried about my cost-competitiveness with some of these solutions.  With my web application, scaleability is going to be fairly low compared to my competitors, but the fixed cost of entry is going to be comparable or lower.  As a result, I think that I can be fairly competitive on price for the niche that I’m targetting, where the cost of entry will overpower the scaling factor.  I know I can blow them away on the feature set (at any level) — there is something about replacing paper and slide-rule totting monkeys with computers that suggests a plausible increase in process efficiency.

My other worry, excessive regulation of the niche, turned out to be vastly overstated.  I read through all my competitors’ disclosure forms and legal agreements, expecting a 40 page monstrosity of a release about one point in particular.  Apparently, everyone treats that point as just an risk of doing business, one that is too minor to even put in their contracts (the one that mentions it disposes of it in a single sentence which begins with the word “Obviously”).   This means I will likely be able to sleep at night without the prospect of being dragged into court on a weekly basis, which is a good thing.  I also think that I can position my application as having less risk with regards to that point than my competitors do, which can only help my sales pitch.

Marketing is going to be tricky.  I don’t have personal experience in the niche and, while I know a few places where they hang out and am putting myself through a crash-course about their business practices and problems,  have not yet figured out a totally effective way to address them.  On the plus side, my competitors apparently have not heard the phrase SEO yet and the two which are using AdWords are not exactly geniuses with it.  Search engine traffic on related keywords may or may not indicate enough interest to sustain me, we’ll see.

Price point: Given that I’m focusing primarily on small fish in the big pond, I’m thinking of breaking with web-app tradition and having exactly one price per month.  The idea, similar to e-junkie, is to get people hooked on you quickly and then bill them forever.  Most of my competitors require you to do math to figure out how much they will charge you, and I think the simplicity of “We have ONE price for ALL customers and are interested in YOUR business even if our competitors think you’re too small to be bothered with” might be a decent differentiator.  We’ll see.

In terms of how many customers I’d need to make a permanent go of this, I could cover my burn rate with about 200 (assuming no growth in Bingo Card Creator) and will replace my next job’s salary well before hitting a thousand.  This is in a market, again, numbering in the millions.  I’m forecasting minimal churn since the pain involved in moving to one of my competitors (and their high fixed costs) looks pretty prohibitive when compared to the price delta, and I don’t anticipate many folks abandoning me for their old way of doing things.  My tentative plan is to take a few years building up the business to where it makes sense to switch, and then going full-time.

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Introducing Kalzumeus

I have been unreasonably busy with the job search and other assorted random stuff (and its truly a random assortment: my younger brother wants to become a novelist and sent me a proof copy, etc).  This has caused me to fly passed my self-imposed deadlines for actually talking about the second project.  Well, its “second project” no more, because a) I’m really hating how clumsy that is to say and b) I have a domain name or two burning a hole in my pocket and no more reason to keep quiet about them.

My LLC (paperwork not quite in yet and won’t be for a while, but its on my desk) is going to be called Kalzumeus Software, and I guess this would be the official unveiling of that name.  I am an ardent proponent of the theory that product names are more important for branding purposes than company names as a uISV (and the product name is about as boring as Bingo Card Creator).  After all, the company is just a legal fiction designed to give me an easier way to relate government authorities and other corporations who expect entity-to-entity rather than person-to-person relationships, and almost all of the folks who I’d really want to be interested in my ongoing concern rather than my products identify it by my name.  So I picked a name which is a little self-indulgent.

Its 9 letters long, easy to mispell (Calzoomius? and about 300 variations), and means nothing to most people.  On the plus side, this made getting the domain name fairly easy and, unless this post has been indexed by the time you read this, its totally unique on Google.  The story behind it is more than a little bit on the geeky side: its a talking dragon from a long-running series of RPGs my friends and I used to play, and as the dragon was smart, cheeky, and just a little insane I thought that was as good a mascot for a software company as anything.

Anyhow, plans are currently to go through whatever legal flimflam is necessary to transfer Bingo Card Creator over to Kalzumeus once it is officially opened (likely towards October or so), and to have it debut simultaneously or thereabouts with the second project, which for the sake of my sanity I’ll call the Kalzumeus project until I can actually release the product name.  Until then you’ll be able to find everything relating to the project and the company under the Kalzumeus tag on this blog, and eventually they will be making the transition to dedicated blogs.  I plan to continue this blog about Bingo Card Creator as long as I’ve got anything useful to say about it.

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Let Me Save You $30+ On Your Taxes

This post is specific to Americans.  If you’re not one, you’ll have to fix your own tax problems.

 Its very easy to forget, particularly if you’re doing your own taxes, but the IRS is offering a credit against your taxes (or a refund if you don’t owe taxes) if you paid for long distance service in the US after Feb. 28, 2003, and before Aug. 1, 2006.  This should include pretty much every American filing taxes this year (it even includes me, since I paid for SBC while I still lived in the US prior to coming to my current job, and I do manage to hit that window). 

The official name is the Telephone Excise Tax Refund, and you can get information on it directly from the IRS.  There are two ways to calculate it as an individual taxpayer: one is to take a standard refund, the other is to get all your phone bills from the last couple of years together and do some number-crunching.  Don’t have your phone bills?  Yeah, me neither.  So take the standard refund.  Its based on the number of exemptions you claimed on your 2006 return (i.e. the one you’re writing for April 2007):

  • One exemption, the standard refund amount is $30;
  • Two exemptions, the standard refund amount is $40;
  • Three exemptions, the standard refund amount is $50;
  • Four exemptions or more, the standard refund amount is $60.
  • How exactly do you get it?  Pull out your copy of the 1040.  Enter the amount of your refund on line 71.  If you’re one of the lucky folks using the 1040EZ, enter it on line 9.  This will reduce, dollar for dollar, the amount of tax you owe.  If you owe nothing, it increases, dollar for dollar, your refund.

    There, that was pretty painless.  Just don’t forget about claiming it!  It won’t be automatically added to your return if you or your tax adviser don’t put it there!

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    March Mid-Month Stats

    My stats through the 15th.  Same disclaimer as always.

    Capsule summary: I’m having my best month ever.  If I didn’t get another sale through the end of the month it would still be respectable, and unlike most months the sales are not in fits and spurts — every day when I wake up its BAM! You’ve got money!  I attribute this success more to organic growth (and, partially, to a rejiggering of my AdWords campaign which has helped it substantially) than anything I have done.  Also fixing bugs with demos people downloaded in February has probably caused some sales to trickle in.

    Sales: 19 (+1 which was refused by Google — I gave the customer a key and asked them to fix their info with Google, never heard from them again.  C’est la vie.)

    Gross Income: about $475:

    429.15 USD
    12.95 GBP
    19.95 EUR

    Expenses: $108

    GoDaddy: $7

    e-junkie: $5

    AdWords: $90 budgeted

    CDs: $6 so far

    Profit: ~$360

    I think by the end of the month I will probably have in excess of $800 worth of sales and possibly, knock on wood, I will make my $1,000 sales target in March rather than in April.

    Web stats will come in another update.  I was inspired by Nick Hebb (you might know him as the flowcharting software tycoon) to try making a graph in OpenOffice to chart my growth in, e.g., downloads over the last 9 months.  Wow, its been 9 months already… where has the time gone.  This will have to wait as I have other commitments today.

    Super-minor update on my next project: Its mostly on hold for the moment due to the amount of work I’ve been doing trying to find my next day job.  I plan on releasing the name and some comments on market selection this weekend.

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    Free Bingo Cards

    I run a small business which distributes a program that creates bingo cards, appropriately named Bingo Card Creator. Google has since picked up on this and that sends a lot of folks here who are looking for many types of bingo cards, and as it happens you can find them on my website for free or make them with the free trial of Bingo Card Creator.

    Christmas bingo cards

    I sort of went hog-wild and made a whole darn website about these.  You can see it here.

    Valentine’s Day bingo cards

    It being February already, most folks are preparing for Valentine’s Day, and some of them might be looking for a fun activity for classes. If that sound’s like you, you can get some free Valentine’s bingo cards over at my other site. If you’d prefer to custom-tailor a set for your family or class, try out Bingo Card Creator for free.

    Harry Potter bingo cards — Yep, I made a set of Harry Potter bingo cards (you’ll want to scroll down, there are many sets on that page). You won’t find them in Bingo Card Creator as I have moral qualms about profiting from J.K.Rowling’s work. The direct link to a set of 32 of them, which should be more than sufficient for any purpose, is here (warning: PDF file).

    St. Patrick’s Day bingo cards — For over a year, this post said how ironic it was that despite being named Patrick I didn’t have a set of St. Patrick’s Day bingo cards.  Well, I finally fixed that by makign a set of them.  You can either use that set or, if you want one which is custom made, you can write one yourself in approximately 3 minutes with the free trial of Bingo Card Creator. Have a wonderful holiday with your families.

    Musical Bingo Cards — These are sort of tricky to make by yourself, so I’ll save you the trouble. You can download a free set of musical note bingo cards, also in pdf format. They’re mostly for teachers who need to teach students the values of common notes, rests, and what some annotations (treble cleff, bass cleff, etc) mean. If you need to make more complicated musical note bingo cards you can read my instructions for doing so with Bingo Card Creator.

    Sight Words Bingo Cards — The absolute quickest way to make these is to download the free trial of Bingo Card Creator, go up to the Wizards menu, select Reading as your subject, and click on your grade level. That will give you the list of all the Dolch sight words for that grade level. If you want to see what the cards look like when printed out you can take a gander here.

    Most Popular Bingo Cards — I keep a constantly updated track of which of the 200+ bingo cards are recently the most popular with my customers. You can see it at http://www.dailybingocards.com/popular . The Top Five are usually a mix of holidays in the near future and a smattering of subjects that teachers find consistently useful — cellular biology bingo, anyone?

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    How Much Time A uISV Spends On Customer Support

    “Not much.” 

    I often hear a bit of grousing from folks who don’t quite understand selling B2C software that you’ll spend all your time telling people how to find the start menu, end up getting McDonalds-esque wages, live in a van down by the river, and have to beg for change from passerby.  Presumably you’d use that change to buy a latte at Starbucks and stay for using their WiFi to answer your support mails.  This is a slight exaggeration of the amount of work involved in supporting customers, even customers who are less than technically proficient.  Trust me, I do my fair share of instructing people in basic computer concepts (OK, to install a program you double click on the …), and I don’t spend all of my day doing this.

    My uneducated estimate prior to starting Bingo Card Creator was that 5% of all customers will require support, ever.  However, given that I’ve got eight months of history to work with now, why go from an uneducated estimate?  I used the not very scientific method of iterating through all the emails in my outgoing mail folder (I follow the rule that the CS rep should always reply to every email) and subtracting the ones which were to myself or to peers instead of prospects and customers.  I did this for the period from February 1st through March 14th (Japan time), which is approximately 6 weeks of time and which includes the discovery and resolution of two major issues which escaped my notice and generated numerous customer emails.

    During this six week period, I have in excess of 600 confirmed unique installations of Bingo Card Creator, at least 2,000 downloads, and 32 sales.  And how many emails did I write?

    Twenty-seven.  Thats about .84 per sale, 4.5% of confirmed installations, and a percent and change of downloads.

    Thats not support emails, incidentally.  Thats everything: pre-sales inquiries, support emails, “Thank you for bringing that to my attention” for folks who mentioned that I habitually butcher the word “convinient [sic]” on my blog, outbound inquiries to people who had purchased Bingo Card Creator multiple times asking if that was a mistake or not (someone wanted an extra CD for his sister), and outbound emails saying that an order was being held up by Google/Paypal for verification and asking if they would please accept this CD key with my apologies for the delay.

    The breakdown:

    Pre-sale inquiries/How do I do X inquiries: 10

    Support (The program is broken!): 8

    Payment Processor Issues: 4 (I initiated 3 of them)

    Are you sure you wanted to buy two copies?: 1

    Thank you for your comment: 3

    Registration Key Not Received: 1

    So lets talk about how return-munching this support burden is: The median mail takes me 3 minutes to write (registry key inquiry — 1 minute to check e-junkie for their key, 1 minute to write up a brief paragraph, one minute to type my key-issuing Direct Access autotext and check to see that the mail meets my standards) , with the most demanding email being 20 minutes and a significant number being 15 seconds (“Thank you for your interest in Bingo Card Creator.  Unfortunately, Bingo Card Creator does not support using pictures on bingo cards.”  — I have this macroed, too.)  If you assume my average is about 4 minutes an email, which is pretty close to accurate, then I am paying myself roughly $370 an hour, give or take, to support Bingo Card Creator.  This is slightly more than I made as a CS representative at Quill. 

    Other ways to contextualize how little customer support actually costs me:

    Its approximately 5 mails per 6 customers.

    Its approximately 2 emails every 3 days.

    If it scaled linearly with customers and I was selling 5,000 units a year (income in excess of $100,000 USD) I’d be writing a backbreaking 11 emails a day.  (Do you think that its a given that a real business generates many more emails than that?  Apparently somebody didn’t give these four major web apps the memo.)  I have strong doubts, incidentally, that support emails scale linearly with customers: my intuition says its actually closer to constant or perhaps logarithmic.

    Will everyone have experiences like this?  No.  There are a couple of factors which make me send more email than other people, and a couple which make me send less. 

    What makes me send more:

    1. My niche is one of the least computer-savvy available on the Internet.
    2. I am fanatical about customer service.  If Google Checkout holds up an order for 1.5 hours in authorization that customer gets an apology whether they’re miffed enough to write in about the incident or not. 
    3. I twice introduced critical bugs into my program/business which generated multiple repetitive emails.  (One build disabled a key feature of my software for about two weeks.  I shipped a handful of CDs with defective graphics on them.)

    What makes me send less than other people:

    1. I sell a very simple application.  There are not too many things which can go wrong.
    2. I give very explicit directions to my customers at every step in the process.  My application’s main window includes a step-by-step how-to guide for the most common use case.  If you buy a CD from me you get your CD key and instructions on how to input it at the confirmation page for your order, in your email confirmation for the order, stamped on the envelope your CD arrives in, and printed on the face of the CD itself. 
    3. When I get multiple inquiries about a single subject I figure out how I can avoid getting them again.  Example: I got multiple inquiries about CD keys and implemented the above-described defense-in-depth.  I got multiple inquiries about Music Note bingo and made a blog post about it that I can just point people to now.
    4. I make judicious use of auto-text and templates to make the process of writing support mails quicker and more useful to the customers.  For example, I have an auto-text which inserts my “Thank you for buying, here is your key” template, which has instructions which I have endeavored to make as simple as possible.  This is an improvement to ad-libbing the directions every time I issue a key, which could result in some customers getting less optimized directions and me wasting my time rewriting the wheel, so to speak.  The key here is being judicious.  People aren’t paying you money so that Direct Access can have a conversation with them.  You need to read, understand, and resolve their issue rather than skimming, classifying, and auto-replying to their issue.
    5. Customer expectations for support for a $24.95 program are pretty low.  Suffice it to say that no school district has ever contemplated a Service Level Agreement for their mission critical bingo card needs.
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    A Happy Milestone

    Its March 13th in Japan and my profits for 2007 just exceeded my profits for 2006.  March is shaping up to be my best month ever (I’ll, knock on wood, probably hit $800 to $1,000 in sales, with expenses in the $150 region depending on how many folks decide to buy CDs).

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