Making money from free applications

[chris128]

Hello!

I've made a few little apps for other IT professionals like me to use over the last year or so, but they have all been fairly simple things with one form that just do one job, so I've been giving them away for free from my blog (shameless plug: http://cjwdev.wordpress.com ). However - I have now begun working on some applications that require a lot more time/work to complete and are very similar to applications that companies are selling for hundreds of dollars.

The thing is I dont want to sell mine for hundreds of dollars... I want mine to be completely free. Here are some of the reasons why I want them to be free:

• I want to help other people out, simple as that.
• I'm not a professional developer and have never been a professional developer, so I somehow feel like I dont really have the right to charge people for my software in case its rubbish. I know that sounds a bit daft but that's just how I feel.
• I cant offer any 'proper' technical support. Whilst in most cases I would probably get back to people and get problems resolved just as quickly as any big software vendor, I cant guarantee that. I feel like if I charge money for a program then I have to commit to some kind of support cover for people who have paid money for it, and I cant do that as I'm at work all day.
• My programs cant go through the same kind of testing and quality control procedures that software from a proper software vendor would go through. Again this makes me feel like I dont have the right to charge people for a program that could be buggy as hell (of course I test them as much as I can but I dont have the resources to test on a large variety of systems/networks)
• At the end of the day, none of the programs I am making are ground breaking or new ideas. They might have the odd feature that other similar apps dont have, but in general there is nothing outstanding about my programs so the only real 'selling point' I've got is that they are free. If I charged money for them then they would be just like every other similar application but made by someone with less experience and less resources, so I doubt many people would be interested in them and then I've just spent weeks/months of my time making software that very few people end up using.

I would be interested to hear your opinions on some of those points - I dont know if maybe I'm being too hard on myself that's all. I recently released a public BETA of one of these apps I'm working on and someone who tried the BETA out sent me an email saying that at the risk of shooting themselves in the foot they thought I should charge money for it and they would buy it. That's encouraging n all but that's only one person (out of the 60 people who have downloaded the BETA so far that is the only feedback I've had)

But the main reason for this thread is this - despite all of those reasons for wanting my apps to be free, I would still like to be able to make some money from them if possible. I mean I'm spending an awful lot of my time (and money in some cases) on making these programs so it would be nice to get something more than the occasional thank you out of it The only two ways I can think of to make some money but also have the apps free are:
1. Have adverts in the app. I dont like this option though because firstly it will take up space and make the app look pretty ugly. Secondly, I dont recall the last time I saw a desktop app with adverts in it (other than adverts to buy the software itself). If I went down this route then I guess I could also provide an option to purchase a version of the software without adverts in (at a pretty low price).
2. Have an option on my website to donate (via PayPal or whatever). The problem with this though is that my apps are all going to be aimed at IT departments in businesses and I dont really think a business would donate when they could just have it for free.

What are your thoughts on these options? Have any other suggestions?

Thanks
Chris

[DeanMc]

Is it desktop software?

[chris128]

Yeah, they will all be winforms or WPF

[DeanMc]

Personally either paypal donation or just charge would be my feeling...... but you already knew that, didn't you?

[FireXtol]

I don't think you'll really make much money off donation ware.

[Nightwalker83]

Well, you could still offer your apps for free but you could have an option where users could buy the source code if they need to modify the program to suit their needs. You can include a copyright notice for the software saying that you own the software and you are only giving the user the right to use modify it to suit their needs NOT sell it or give it away.

[chris128]

I don't think you'll really make much money off donation ware.

Yeah I know, I'm not looking to get rich I just would like to get a little cash reward for my hard work

[chris128]

Well, you could still offer your apps for free but you could have an option where users could buy the source code if they need to modify the program to suit their needs. You can include a copyright notice for the software saying that you own the software and you are only giving the user the right to use modify it to suit their needs NOT sell it or give it away.

Only problem with that is that I don't think many people at all would really care about getting the source code or modifying it. Something to consider though..

[baja_yu]

Here are my thoughts on the ideas given.

If the application is for mass market (standard computer users), the best options would be donations.
If it is meant for the developer community and professionals then sell source code.
If corporations/companies will be using it, use nag screens in free and sell nag free version.
Ads can go in any of the three categories.

[chris128]

Its for companies, and I had considered nag screens but then surely there needs to be some reason to upgrade to the version without the nag screen... other than just getting rid of the nag screen. If I take some features out of the nag screen version and put them in the 'full' version or have some limit in the nag screen version, then it makes it seem like a trial and thats what I want to avoid (because every other similar program has a free trial with limits)

[FunkyDexter]

Noble sentiments, I must say. (I actually mean that, for once I'm not being sarcastic).

I'd have thought the easiest way to make money would be to sell advertising on your site. I agree that advertising in the apps would devalue them considerably but advertising on the site would be fairly standard and shouldn't cause objections.

[MarMan]

I always thought the best way would be to give your apps away for free excluding the most time-consuming part.

"Enjoy this free app. If you would like automated backups of your data files, you can buy version "whatever" which does this for you, for a small fee.

Most people can't and/or won't pay for software. So give them you small free versions. Some people who can pay or appreciate the trouble you went through will be happy to pay for any extra feature(s).

[chris128]

I'd have thought the easiest way to make money would be to sell advertising on your site. I agree that advertising in the apps would devalue them considerably but advertising on the site would be fairly standard and shouldn't cause objections.

Yeah I guess that is one option I had not really considered much - the only potential problem with that is that I don't know how much people would actually visit the site. I mean once someone has been on there and downloaded the program they want they have no real reason to go back on it unless they are just curious to see if I have released any new apps (which wont happen that often as all of the apps I'm thinking of making are going to take a considerable amount of time). Having said that, I suppose if the applications become quite popular then there will always be a fair amount of new people visiting the site to download them. I guess with this option I could also have the Donate button as well just in case anyone is feeling generous

[chris128]

I always thought the best way would be to give your apps away for free excluding the most time-consuming part.

But then it just looks like a trial or limited version and I want to try to avoid that because then its just like every other app out there that does the same thing. Even if my apps would probably be a lot cheaper than other similar applications, I still dont like the idea of saying "hey my software is free... but not if you actually want to use the most useful features in it"

[dclamp]

Yeah I guess that is one option I had not really considered much - the only potential problem with that is that I don't know how much people would actually visit the site. I mean once someone has been on there and downloaded the program they want they have no real reason to go back on it unless they are just curious to see if I have release any new apps (which wont happen that often as all of the apps I'm thinking of making are going to take a considerable amount of times). Having said that, I suppose if the applications become quite popular then there will always be new people downloading them. I guess with this option I could also have the Donate button as well just in case anyone is feeling generous

Also with the web ads, with something like google Adsense, its as easy as setting it up, and leaving it. You will get the occasional click or so, make money here and there and forget about it for a few months. Then when you check it online you will be surprized when you have enough to cashout.

[chris128]

Yeah that was one thing I was curious about actually - how much you get for adverts and how you go about setting them up. I know using Google adverts will probably be the easiest way but I dont know if I might be better off approaching some companies that are in the business that I am aiming my apps at (ie IT vendors and IT service/software providers). I'm guessing though that most companies are only interested in advertising on websites that get thousands of hits per day..

[dclamp]

Yeah that was one thing I was curious about actually - how much you get for adverts and how you go about setting them up. I know using Google adverts will probably be the easiest way but I dont know if I might be better off approaching some companies that are in the business that I am aiming my apps at (ie IT vendors and IT service/software providers). I'm guessing though that most companies are only interested in advertising on websites that get thousands of hits per day..

You are correct. You are best to go with AdSense. There are a lot of possibilities with ad type (links, animations, banners, size, etc) and the kind of ad (based on the contents of your website, google will determine it and post relevant ads.

As for how much each ad pays, its anywhere between a few cents, to a few dollars. Depends on what the person posting the ad wants to pay.

[chris128]

There are a lot of possibilities with ad type (links, animations, banners, size, etc) and the kind of ad (based on the contents of your website, google will determine it and post relevant ads.

Thats why I am considering going to IT companies though - because I would rather have something I know is relevant, instead of an ad that google considers to be relevant. I figure that way the adverts are more likely to be of interest to people visiting my site and in turn that means people are more likely to click on them, which I believe means I get more money than if they didn't click on the ad?

[dilettante]

Often in companies the problem won't be willingness to pay a reasonable fee, but no mechanism to get through the paperwork required to make even a modest payment.

There was once a time when development managers were issued a company credit card for things like books, software tools, and even training. This worked well in the early days of shareware and e-commerce. We had to keep a log of purchases, paper copies of email or Web receipts, and turn them in each month. These went to Purchasing folks who reconciled the monthly statements from the credit card bank. Questions about some purchases came down through management for approval/justification. Sometimes they denied the purchase and made you fork over the cash, but only in clear cases of abuse.

A ruling came down that this was descriminatory against other kinds of employees. For a time then credit cards were issued to nearly any employee who's supervisor requested one. It quickly got out of control, abuse was rampant.

This put an end to the whole experiment, which lasted about three years.

Now it is basically impossible to acquire small tools without paying out of pocket. The amount of paperwork required for even a small purchase is staggering, and often when the purchase is made (by some Purchasing clerk in another building or even city) they buy the wrong version of the product, the wrong product, or they lose the downloaded software and/or any product key required. It is a total disaster.

When we absolutely need anything we pay for it ourselves now and submit even heavier paperwork to try to get reimbursed.

Bleh.

[FunkyDexter]

I know using Google adverts will probably be the easiest way but I dont know if I might be better off approaching some companies that are in the business that I am aiming my apps at

Personally I'd want to go with the latter but it would probably involve alot more work. alot of it depends on whether you're building a straight portal or a community. If it's a straight portal your punters aren't going to care less about the nature of the adverts. If you're building a community then more specific advertising is definitely the way to go.

A freind of mine runs a dungeons and dragons web site (yes, he's a geek... but he's a geek whose currently making lots of money for doing naff all work so you've got to hand it to him). It's very much a community affair and when he experimented with generic advertise there was a near revolt. Keeping his advertising niche means that the punters are actually quite pleased by its presence.

[chris128]

Yeah exactly, if I see an advert that is related to something I am interested in then I done mind but if I just see random adverts that are not really related to the website I am on then its annoying. Like you said though this will be more work and I'm not sure how many companies would be interested

[minitech]

Make every single operation in your program have a 1 second delay unless the people pay $5. Depending on how many people actually use it, of course.

[chris128]

Make every single operation in your program have a 1 second delay unless the people pay $5. Depending on how many people actually use it, of course.

haha nah that's just going to annoy the hell out of people

[minitech]

Probably

[dclamp]

yeah it will annoy them... then they wont use it. Make it 5 seconds.

[chris128]

Well I think I'm going to go with the idea of having adverts on the website + a donate button, and see what happens If I make absolutely no money after a few months then I might have to just consider charging a small amount for the programs

[akhileshbc]

I think, showing a startup screen with some Ads will be another choice. Let it off after 10 seconds. These ads will be from your webserver, which will be downloaded when the app is started.

Good luck...

I would like to see(curious) some screenshots of the app

[akhileshbc]

Cool...

I was expecting something more with the interface. Because you said...

Yeah, they will all be winforms or WPF

I think, you should also upload a copy of the software(beta or something) in those sites which allows free software downloads.
That will make the software even more famous.

[chris128]

Yeah well this particular app isn't WPF but the next one will be

[chris128]

Well a quick update one month down the line - I've had over 1400 people download one of my most recent programs from my website and only one person donated ($15). Plenty of emails and comments saying thank you, but only $15 worth of cash... which I guess pays for my website hosting costs for a few months but thats it.

So - I think for my next app I'm going to do as someone previously suggested and have a splash screen that appears for a few second before the app launches, which displays an image or web page that shows an advert. I've contacted one company about this and they were interested but said they would only pay me if a user actually clicked the advert in my app and then went on to download and install their product (and even then they would only give me $3 for each one). Now to me that seems like a great deal for them but a bit of a rubbish deal for me, because they could potentially get thousands of views of their advert for no cost at all if people dont actually click the advert and go on to download their product. I think that should still cost them money because its still brand awareness or "impressions" as I think its called in the web advertising world. People could also see the advert in my program and later decide to check out the product themselves without actually clicking through my app, so again I would not get money for it.

If all the other companies I speak to only offer me a similar kind of deal then I think I will do the advert splash screen thing but also have an option for people to buy a version that doesnt have an advert splash screen for a very low price (like $5 or something). That way people are hopefully quite likely to buy it because the advert screen could get a bit annoying and its such a low price that its worth it, yet I still end up getting more money than I would through the advertising. I mean if 1000 people decided to pay for the app over a couple of months then thats $5000, which is more than I would make from advertising in an entire year... Plus this way I can still state that the software is free, as there is a free and completely unlimited version - it just has an advert splash screen.

So thats the plan at the moment, what do you guys think?

[chris128]

An interesting development for anyone who is following this - I refused the offer of $3 per install of the advertised software mentioned in the previous post and they have now offered me $200 for a month of advertising their software in a splash screen in my program, which sounds much better to me I believe this is going to basically be a trial because they have no experience with advertising in my software previously so they don't really know how many views the ad is going to get (I gave them an idea of how many people downloaded my last app), so I just hope that in that first month I get as many people using the program as I'm expecting!

[chris128]

Decided to try selling one of my latest apps for a small price (but also having a free version with less features) and well... in the first 24 hours of it being on sale I have made more money than I did in 2 months of relying on donations. I guess this is going to have to be the way forward.

[DeanMc]

Your welcome chris

[akhileshbc]

Good luck

[Shaggy Hiker]

That sounds like the economics I know.

[chris128]

That sounds like the economics I know.

lol yeah I guess its time to face reality

[dee-u]

How is business going? =)

[chris128]

Going good thanks considering I've only got one small (and fairly niche) program for sale at the moment. Sold about 15 copies of it in the first month of it being on sale and just sold one more this morning. I've nearly finished my next app which will sell for a slightly higher price and hopefully be of interest to more people as well.

Ironically I've also had a couple of $20 donations since I started charging as well.

[akhileshbc]

Going good thanks considering I've only got one small (and fairly niche) program for sale at the moment. Sold about 15 copies of it in the first month of it being on sale and just sold one more this morning.

How much $$$ ?

[chris128]

Well each copy sells for $39 so work it out (but bear in mind I don't get all of that as there is commission to pay for the company that provide the online sales system im using and then also charges to pay for them to transfer money into my bank account as they are not in the same country as me)