The Photo Doesn't Quite Do It Justice

I just got my SwiftCD in the mail (I ordered a copy myself so that I could take photos for the website) and, I must say, it looks rather slick.  In my haste to get a picture I used my cameraphone, which while 2 Megapixels (did I mention I live in Japan?  Phones here can practically perform brain surgery) is not quite the ideal platform for taking a picture of a flat surface.  The green bit is the notebook I was using for a backdrop, which ironically is currently filled with notes for my second project.  Anyhow,  the printing is astonishingly clear (even the teeny-tiny text on the CD is easily legible) and in person it looks very professionally done.  Even the Bingo Card Creator bee is recognizable in all his 1/4th of an inch wingspan glory.

SwiftCD of Bingo Card Creator

Anyhow, the timestamp on this order was sometime on the 9th (America time).  It shipped on the 12th (America time) and arrived on the 19th (Japan time — approximately the 18th US time), which I would consider pretty good since there was a weekend which got in the way before order shipment.  What an age to be living in where you can get a package to a little ricefield on the other side of the world in about a week for 84 cents.

Comments Off

Revenue Growth Is A Wonderful Thing

Sales for the entire year, 2006: $2,100 or so (I subtracted out returns and eSellerate sales, which I never actually received.)

Sales from January 1st, 2007 through February 15th, 2007: $1,050

Still got quite a bit to go if I’m going to make my $1,000 in April and $10,000 in 2007 targets but I think I can do it.  (Profits are, of course, another matter.)

Profits in 2006: ~$1,250

Profits YTD in 2007: ~$825.  I have this funny feeling I will do better than last year.

Comments Off

February 15th Stats Update

I know its not technically the 15th, but I’ve been busy. 

Sales this month started out strong and then Valentine’s Day rolled around and smacked me.  I really need to start anticipating holidays and releasing special versions/ads for them, because otherwise my sales tend to decline to zero around them.  Note that the following numbers are not quite contiguous with the last stats update, because I gave that on the 30th in a month that has more than 30 days, plus I reach the 30th a day before my market does.  Oops.  So you could increase these numbers by 3 sales if you want to have a full accounting of how much money I’ve made since last time.

Gross Sales: $294.45 (11 total, no refunds.  4 CDs requested)

Fulfillment costs:

   CDs: ~$42*

   Paypal: $7.64

Other Expenses (through end of month):

    AdWords: $45

    GoDaddy: $7

    e-junkie: $5

Total Expenses: ~$108

Profit: ~$195

 *Note: This number includes 3 CDs more than customers actually ordered.  One of those is a proof copy of the SwiftCD CD for myself, so that I can see what the customers get their hands on for the purpose of being able to explain it better (sidenote: I would oh so appreciate a live preview feature for making changes — cd-fulfillment doesn’t have one either but they do include some simulated sample invoices, etc, so you have a general idea).  The other two are replacement CDs for two customers who got CDs from cd-fulfillment.com with a graphic that I had sized correctly, resulting in labels which are below my quality standards.

Other statistics: my traffic, number of downloads, and number of confirmed downloads have been at sustained peaks for the last week and a half.  (Wish me luck — typically, my sales peaks trail download peaks by about a week.)  I know average over 400 visitors on weekdays and about 200 on weekends, whereas my comparable figures for, say, November were about 100 and 50.  This is after discounting traffic which I receive from my blog, which has been far higher than usual recently after I had a few high traffic posts.  (The one immediately below about dealing with problem customers has had about 5,000 views and, to judge by the email responses I am getting, has rocketed far out of my normal English-teacher-or-uISV-owner demographic.  I’m getting notes of commiseration from people as diverse as real estate agents and medical malpractice attourneys.)

Comments Off

How To Deal With Abusive Customers

If you weren’t so abrasive and rude, I would’ve refunded your money – even though we are under *no* legal obligation to do so.

I am now marking your email address as spam and your communication will no longer get through. If you don’t want to use our service any more, please cancel your account.

I have taken this conversation completely out of context because context doesn’t matter in customer service (the bold bits are mine, too).  The only thing that matters is you keeping your cool, and this can frequently require having the patience of Job and less ego than a blade of grass.  The above conversation is not one I would consider a good example of conflict resolution on the part of the representative who sent it.  That was Ryan Carson of Dropsend, incidentally, and you can read the context on his blog post about it.  Ryan asked publicly how other folks would have answered.  Here is my response, and the rationale.

The initial stimulus:

Refund me the 5 dollars ASAP

This would set me looking in my transaction records, where I would find that the customer has just done an instantaneously upgrade/downgrade for a subscription service and been charged a pro-rated amount to the end of the month.  Here is my response.

Thank you for using Dropsend [the name of the application at issue].  I received your message asking for a refund of $5, and have instructed our credit card processor to refund you.  Is there anything else I can help you with?

What did that cost me?  $5, thirty seconds of research time, and counting to five before allowing someone’s lack of civility to ruffle me.  The $5 I will get back from this customer next month, and even if I don’t its $5 and that is below my care threshold as a business owner (or as anything, really).  The research time was a sunk cost the moment he said “refund” because I have to check that he is a customer to be physically able to process a payment.  The five seconds is the expensive bit for most people, because that requires suppressing your ego, and that can be irksome.  Regardless, this response a) totally resolves the problem for the customer and b) keeps them happy and ready to pay me next month.  As an actual bonus if the customer is having some support related issue they might email me back and allow me to fix it, improving the quality of my service for the thousands of  customers I have who are not in on this email exchange.  If they don’t mail me back, thats OK too — I’m doing things that matter for the business and not swapping a series of hostile emails with someone which will gain me nothing.

Oh, sure, you can go searching for a rationale on why allowing yourself an ego (I’m using this in the non-pejorative sense of the word) is a good idea.  “They’ll walk all over me”.  “We have a policy against this.” “If I do it for him I’ll have to do it for everybody”.  Hogwash, irrelevent, and don’t care.  The overwhelming majority of your customers in the software business will never ask for a refund or contact support (I’m talking about packaged software or services here which are substantially identical for all customers).   Suppose some fraction of your support requests walk over you — so what?  Support requesters make up a tiny fraction of your turnover every month, and a tiny fraction times a tiny fraction equals a “cost of doing business”.  Your blood pressure is more important than that .1% of customers who want to wheedle over $5.

Another reason to kill this exchange after the first email is that it prevents escalation.   Escalation is what takes you from “My, didn’t this chap’s mother ever teach him manners?” to “FINE!  I DIDN’T WANT YOUR MONEY ANYWAY!”  Its easy to see it in hindsight but, in the heat of the moment, most people don’t recognize they are doing it.  As a result, you want to practice what the IR/polisci buffs call a commitment strategy — basically, you decide beforehand that if someone has an issue you are going to be obsequious about it.  Obsequious.  What a lovely word — did you know that there are several ways to say it in Japanese and that not all of them are considered negative?  I often wish English had a word for when you need to be a spineless craven lickspittle in a good way.  Learn from the Japanese, they have the “I can put a polite reserved face on this for the sake of our continued relationship even though I’m absolutely fuming on the inside” down to an art form.  (That face is called tatemae, the feeling on the inside is called honne.  There, you learned your bit of linguistic trivia for the day.)

See, if you start escalating, you will allow yourself to be drawn into an argument with your customer.  You can win an argument with your boss.  You can win an argument with your wife.  You can even win an argument with God.  But you will never win an argument with your customer.  You might get the last word in, and puff out your chest, and then find that they cancel their subscription and/or chargeback you.  And in the pursuit of a lousy five stinking bucks you’ve just lost a $50 revenue stream over the next year, which is almost pure profit because you are selling a software service which requires no marginal work, you’ve risked getting bitten for $15 by Visa when they chargeback and having to waste an hour of your life repeating the argument to a series of bored Visa representatives who are all thinking “Why did I sign up to do this job?  Everyone acts like children” (you’ll lose the chargeback, by the way), and worst of all you’re stressed.

You might think you would be stressed if you suppressed your ego.  True, for the first two weeks or so.  After that it just becomes a habit.  You learn to mentally shut out the torrent of abuse in your ear and skip over the written invective, and when you get a word in edgewise say “OK, what can I do to help?”  Trust me, I worked in a call center — if you learn how to do this, you can work in a call center for your entire life and not get tired.  If you don’t, you will burn out in a matter of months.  Just pretend you’re like that character from Firefly who, when faced with a stressful situation, repeats a mantra: “I am a leaf on the wind.  Watch me soar.”  And, well, ignore the fact that those were his last words.

 Ah, the company has a policy against refunds.  Here is the great thing about running your own business: you are the boss.  If your company has a policy against refunds, you can break it at will.  Call it an exception, call it a special accomodation, call it a goodwill expenditure, call it whatever the heck you want — the policy is a few bits on a server somewhere.  If you refund this customer, who will fault you for it?  Certainly not your boss — you are the boss!  And, as long as you’re the boss, why don’t you rewrite your policy against refunds saying that you’ll gladly give out refunds.  Its the key to getting your fantastic customer service to scale.  This chap you’re giving the refund to might tell a friend or write a blog post… of course, he’ll probably tell no one.  However, a nice prominent guarantee like “We’ll refund your last payment anytime, for any reason.” gets seen by every prospect who is worried “Hmm, what if I’m not happy?”

Even if you have some darn good reason to be a Scrooge in print in your policy, don’t get trapped into the “If I make an exception once I’ll have to make an exception for everyone”.  Says who?  Your boss?  You are the boss.  Boolean propositional logic?  You’re a businessman, not a computer programmer.  If the accomodation advances your business goals make it, end of discussion.  Your customers are an incestuous bunch but they mostly don’t talk about how easy it is to screw you over (mostly: in some markets they might.  I hope you’re not doing business in those markets).  Instead, they typically talk in terms of ecstatic, happy, and furious.  If they never have a problem, they’re happy.  If the last time they had a problem, you bent over backwards, they won’t think “This guy is a pushover!” (even though you are!  And good for you!) but they’ll think “Wow, the service here is amazing!”  And if you have a two year long relationship with a customer, without any previous bad incident, and then you send them one teensy-tinesy email saying “I would have refunded your money, but decided to keep it.  Nyaa nyaa.”, now they’re furious.  And they will never ever again be anything but furious.

Comments Off

MicroISV on a Shoestring Reader

When folks ask me “So how exactly did your uISV come about?”, I generally tell them to go to the start of the blog and start reading.  Unfortunately, blog software is generally designed to be read from most recent to oldest.  Anyhow, a gentleman named Rizal mailed me today and said he created a “MicroISV on a Shoestring Reader“, which is a mashup that displays the blog organized in chronological order.  Its simple and effective.  Thanks a bunch, I’m sure some folks will find it useful.

Comments Off

Switched to SwiftCD

As I mentioned earlier, I had been contemplating switching to SwiftCD for a while for CD fulfillment over cd-fulfillment.com.  I just completed the transition yesterday and had my first order with the new system processed while I slept.  Yay.

The reasons I made the switch

  1. My recent retooling of my purchase page has made roughly half of my customers reuest CDs.  That means that I get to do a manual order entry nearly every day, and that if I miss checking email someone has paid me meney but is not getting their product.  I did order entry for two years and hate it (love talking to customers, hate typing addresses).  This literally quadrupled my support burden (I get four CD orders for every email that requires a response) and added no value to the customers.
  2. When I posted to this blog that I was considering switching to SwiftCD, they contacted me and pulled out all the stops trying to get me to switch.  Full disclosure: I think that is probably because they think I would probably write up a positive evaluation of them, and hey, thats what I’m doing, so discount this report to whatever degree you think appropriate.  (Its certainly not so they can capture my awesome volume.  10-20 CDs a month or so times thin margins = not a lot of money.)  When I say “Pulled out all the stops” I’m not exaggerating: they had a company designer redesign my CD label to demonstrate their printing prowess, the CEO mailed me a half dozen times asking on my progress, and they even worked with e-junkie to make sure the integration went well.
  3. Easy integration with e-junkie.  After finding the instructions and setting up my CD on the SwiftCD side integration took about 15 seconds on e-junkie’s site and about 30 seconds replacing two links on my purchasing page.  Now rather than waking up 30 minutes early and checking my email to see if any CDs were purchased so I can copy, paste, copy, paste, copy paste name, email, address, transaction number, etc etc, e-junkie forwards the shipping details directly to SwiftCD and I can get some extra sleep in the morning.
  4. The Registration Key gets automatically printed on the mailer (called Product Key or something).  I can live with that.

I also had a slight difficulty with cd-fulfillment.com in the last week.  I uploaded a label using a template of theirs, it ended up printing very badly, and as a result I shipped two products which were not up to my quality standards althought they would run without difficulty.  This was totally unrelated to my decision to switch — cd-fulfillment did exactly what I would expect, which was shipping the order and telling me there was a problem.  I contacted the customers myself to make amends (“I’m sorry, I goofed, I will ship another CD at my expense”, at paragraph length).  cd-fulfillment has been pretty good to me for the duration of our business relationship, and I think they’re still a wonderful service for many people (and cheap, holy cow — just eating international shipping charges is amazing).  If they had easy e-junkie integration, I would have probably stayed with them, and I’ll keep them around as a backup in case SwiftCD suffers any hiccups.

Anyhow, since I don’t intend to hold SwiftCD to their price matching guarantee, I think I’m probably going to be on the hook for slightly more than the $5 I charge for the majority of my CDs.  $5.38 or so for US customers, for example.  I will happily underwrite the difference for the moment, since the convenience is important to me and many of my customers won’t buy without the CD option.

Speaking of prices… I have been considering a $5 price increase for both versions, probably tied to the 1.06 release.  We’ll see if I implement it or not.

Comments Off

The Next Project

I’m expecting to start this summer, and have narrowed it down to two candidates (with the option of adding another at any time, naturally).  Budget is estimated at $1,500 to launch and several hundred per month in advertising.  I think I can have version 1.0 of the app saleable within 1 month of opening my IDE.  Income projections for the two candidates are pretty disparate.  The better option of the two, from my current research, would (with rather modest assumptions made about customer volume) probably exceed my current salary within a year of launch.

What is it?  A web app (uh oh!  I’ve drunk the Web 2.0 coolaid!).  I anticipate using about zero Web 2.0 cruft, probably developing on LAMP (which is why I’m giving myself a full month, since its not conceptually harder than Bingo Card Creator), and having a 100% subscriptions revenue model, probably with 1-2 months free trial.  The selling proposition is the same as e-junkie’s but targetted at a completely different vertical — “I’m going to make it easier for you to make a lot of money.  You’re going to pay me a trivial amount every month and be happy to do it.  We’ll be doing business together for YEARS.”

Issues: this app has money involved and there will be a lawyer brought in as insurance.  I will probably need the design done by a professional.  (There’s the budget, incidentally.)  I’m not a web programmer (as a matter of fact, I hate it) and so I will have to learn a bit to do this.   I am not as intimately aquainted with this vertical as I am with teaching, but still think I get it enough to do a fairly decent job.  I have competition offering services which can accomplish the same general goal for cheaper, but I have at least three ideas why my method is uniquely superior, in a way which is readily apparent to the customer.  I will be unhealthily dependent on a major corporation whose name, for once, does NOT start with G.

I anticipate being as open on this project as I have been with Bingo Card Creator, which means that after I have something to show you’ll be able to see it.  Until then, this is sort of a memo to myself to not spend summer on videogames.

Comments Off

Musical Note Bingo Cards

In the last six months I have had several music teachers write in to ask me if Bingo Card Creator can create cards with musical notes on them.  The answer is “yes”, but the process is rather difficult. 

  1. Download a font which is capable of displaying musical notes.  I recommend Bach (free for academic use).
  2. Open Bingo Card Creator.  Select Font from the options menu, and switch to Bach.
  3. Turn off Free Space (it will not display correctly in Bach font).
  4. Open the sample document which came with Bach, and copy the musical symbol you want.  Paste it in the Add New Word box in Bingo Card Creator.  Hit enter.
  5. Repeat step 4 until you have the number of musical notes required for the card (25 for 5×5 bingo cards). 
  6. Print however many cards you require.  Note that you cannot at this time save a list of musical notes, as it will be corrupted when you attempt to load the list.  This is a limitation of how Bach represents notes internally.

As this process is rather arduous for many teachers to perform, I have made 32 musical note bingo cards myself.  These use the Bach font described above, which is only free for academic and personal use.  Accordingly, please be honest and only use them for academic/personal purposes.  You can download them here in .pdf format. 

For my part, I do not and will not distribute Bach with Bingo Card Creator, and accordingly you will not find the word list used to create this in the Bingo Card Creator download.  If you wish to have musical bingo cards but not quite the ones found here, you can create them yourself using Bingo Card Creator and the above instructions.

Comments Off

NSIS vs Inno Setup

I haven’t really spent all that much time on my installer, which is somewhat silly because its the first look people get of my software and I should really want to nail it.  Especially in the consumer market, looks sell software — this is yet another reason why I love my stock icons, as they make my software seem bright and happy, like a Fisher-Price toy.  I just switched from NSIS to Inno Setup for a similar reason.  Here is the very first screen shown by each of the two installers — take a wild guess which is the one I’m going with. 

 vs.

 Ironically, the second one requires two mouseclicks more than the first.  I’ll see if I can’t reduce that by playing with the setup script, since additional mouseclicks are also something I really hate forcing on my customer.

Comments Off

Simple Changes Fixed Adwords

Regular readers know that my AdWords campaign, which I spent a great deal of time optimizing back when I started my business, has been not performing well for the last several months.  I have recently fixed this — amount spent is down 50%, CPA (cost per marginal trial download) is down 50%, and conversion to purchases is now measurable.  I get $2 in purchases for every $1 on AdWords, as opposed to $0.60-0.80 as of a month ago.  I might be jumping the gun, as this is just my results from one week, but tentatively I think my tweaks worked.

What I did:

  • reenabled position preference.  For queries like “make bingo card” which I practically own, Google was happy to give me the #1 ad spot.  They then charged me about 15 cents for it, and I have an extraordinarily high click rate (something like 8 to 10%, depending on query).  That can end up burning my $3 per day very fast.  Now,  folks looking to make a bingo card are good prospects for me but not GREAT ones, since they may well be looking to make numeric bingo cards and they can do that cheaper elsewhere.  (If they’re looking to make cards for class on Friday, on the other hand, I very well might be the best site on the Internet for them, if I do say so myself.)  So I said, you know, let someone ELSE have that #1 spot.  (Position preference #2 through #10)  This let one of my competitors for the spot have it, and they get to pay 15 cents (or more, probably, since they don’t have my CTR for that keyword — most of my competitors, incidentally, are folks like Amazon who mass bid on every keyword under the sun).  I get the #2 or #3 spot now, for 10 cents.  It also comes with customers who appear to be more likely to convert (30% vs. 22% for trial).  Savings per download: 50% (45 cents vs 22 (!!!) cents).
  • Killed underperforming keywords.  If they had a CPA greater than my expected profit per download (about 40-50 cents), no matter how good I thought they would be personally, I nixed them.  “How do I make bingo cards?”, etc, got voted off the island (CPA was over a buck!).  My only remaining keywords are my A-team, and I need to see if I can’t recruit a few members this week (since my total spend now is half of what I want to be able to budget every month — heck, as long as its actually sustainably profitable it makes sense to increase it, right?)
Comments Off