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Ask HN: How do I sell my expensive niche software w/ no sales background?
A little over 2 years ago, I quit my full-time job and began freelancing. The vast majority of my work has come from one particular group of customers at a University. I've been paid 10-20k dollars on 3 separate occasions to develop a web application for this niche, I have another customer who will be paying me a similar amount in the fall when I work with him, and there is another customer who wants something similar but doesn't have the funds yet.
This niche is academic in nature and as far as I know the money comes from grants. I have never signed any paperwork, I have simply built what they wanted and been paid. I have a great relationship with these customers and have already discussed the fact that I might try to sell a product like this to other institutions, which they are fine with. I am confident that I can extract some core components that are useful in this niche, rewrite the app (there are things I want to improve), and create a product that would be useful to other similar institutions. However, I don't actually have many connections in other cities yet, nor do I have any experience in selling a piece of already-developed software for tens of thousands of dollars to people I don't know. All of my business has come through referrals. What I _have_ done is spent a few years talking to the customers, answering emails of the users of the app, developed several different versions of it, and been able to successfully charge money by the hour for development. So I feel like if I only connect a few more dots, there is a great business here. So now I'm trying to decide where to go with this, and could use some help.
So I have a few questions:
1) If a piece of software would cost tens of thousands of dollars to develop from scratch (possibly more when considering the development has required the time of many highly paid individuals), would it be reasonable to charge someone five figures for a packaged solution, and also charge a high consulting rate for customizations and integration with the customer's data? Note that this software isn't being sold to mom and dad or your friends, it's being sold to large, state and federal funded organizations, and there aren't many solutions out there.
2) How does one go about learning to sell? Especially a software product that is expensive, but probably wouldn't sell that many copies, maybe a thousand copies. Any books you recommend? Do I just find the proper contact at the institution and call them up? Tell them about what I have and show them a demo? Do I need to get a sales guy? Do I need to fly all over the country and show the software in person? Would someone be willing to buy an expensive piece of software based on a screencast and examples of a couple of other customers that use it?
So there you have it. I'm trying to make the transition from consulting to selling a product, have a couple years living expenses in the bank, and have someone willing to pay me while I work on it for the next few months. But now I just need to figure out where to go next. Obviously I will sell the first copy to the client I am planning to do work for in the Fall. But what should the next step be? My first thought would be to just start cold calling potential customers, which I have never done. Any help you can offer would be appreciated.
- jaddison 17y agoReseller and/or affiliate networks come to mind - let them do the selling for you, for a commission. This would be easier to accomplish with traditional desktop-type software than a packaged web-app - but I would argue that it's not impossible. You might consider resellers that are willing to work with a pay-per-lead, which likely would work in your favor (protecting your web-app source) more so than a pay-per-sale model. That way, the resellers send interested parties (leads) your way, but you close the deal - and no one gets your product without your say-so. The normal "protect-your-source" issues arise, but those are out of the confines of this discussion, I think.
- sachinag 17y agoThis is a consultative sale. Also, in academia, you're going to have very long sales cycles. If I were you, I'd try to find a half-time independent sales rep and I'd have one hell of a website. There's absolutely no way that cold-calling is going to work the way that you think it is; it will take up too much of your time to do it correctly. (Honestly, my first recommendation is to stay the hell away from healthcare and education sectors, but looks like that ship has sailed.)
- bhousel 17y agoAgree with all points on consultative sales.. I'd like to also suggest to do some research into what kinds of conferences your clients go to. If it is a niche industry, there are probably one or two of these a year. You (and your sales rep, if you can find a good one) should absolutely go to these. Visit the trade booths, go to the happy hours, talk to everyone. If you can afford it, you should have your own professional looking booth. Conferences are where potential clients will go to make a decision to buy, and it can often have more to do with your personal skills than your technology. Find out who has the budget or grant money and focus on them - don't spend too much time talking to people who aren't decision makers or who aren't in a position to buy - but don't blow them off either, because word of mouth is very important in consultative sales, and they may one day be potential clients, or they may refer you to someone that they know who is looking to buy. Good luck!
- grandalf 17y ago