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July 8, 2005 01:00 PM

Categories: Marketing and PR

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rjack

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Joined: 06/23/2004

We have recently released a public alpha of a new product called Lucid Spec:

http://www.elegancetech.com/ls.aspx

Lucid Spec helps users create clear GUI specifications through screen design, application simulation, and GUI description.

Anyway, we are trying to decide the whether we should have a Community Edition. I notice that some companies appear to have been successful with Community/Home/Free Editions:

http://www.gentleware.com/index.php?id=poseidon_for_uml

http://www.altova.com/matrix_x.html

http://www.anticipatingminds.com/Content/Products/devAdvantage/devAdvantageCommunityEdition.aspx

What is the best way to determine if this makes sense for us from a marketing/revenue standpoint?

Thanks for any advice.

Discussion:    Add a Comment | Comments 1-3 of 3 | Latest Comment

July 8, 2005 6:02 PM

What is your goal for the Alpha program in terms of market penetration? The typical free software program is about enticing the technical enthusiast to incorporate the product in their workflow on the job, so that their employers will sponsor projects or just buy the software.

You would need to gate any market entry with some research about market size and pricing. Then, you can decide if there is a market for your product in the community space. But, you really have to know if money is the goal, or market size or social capitalism.

Early in our business, the founder entered numerous markets that were too small to go vertical. Avoid this outcome.

David Locke

July 18, 2005 11:30 PM

We have recently released a public alpha of a new product ...we are trying to decide the whether we should have a Community Edition.
What is the best way to determine if this makes sense for us from a marketing/revenue standpoint?


At this stage in your product lifecycle, I would not worry about it. Give yourself a year at least to get some traction and paying customers and to get to v2. Validate needs and your product concept from people who have a vested interest (cash-paying customers).

To me, Community Editions are like loss-leader products ... you are giving up revenue to hopefully gain some mind-share later on. But with a brand new product, that is the least of your worries. Put this item on your to-do list to re-visit a year or two from now.

---

Robert Dubicki

July 19, 2005 6:28 AM

IMHO, Community Editions are not loss leaders. You are not giving up revenues, because the people downloading it would NEVER pay for it in the first place. And, they are NOT going to be customers.

The reason you might not want to do a Community Edition centers around the difference between technology and products. If it is a poduct, then you already skipped the Community Edition opportunity. If it is a technology that has yet to be productized, then the Community Edition is the right thing to do. But, to do it right you have to realize that the Community Edition is for geeks who like to play with technology. They may convince their management to incorporate your technology into their systems, but these geeks are not your customers. Their bosses are.

If you have a product going into an existing category, then skip Community Editions, because they are part of the "teach the market" paradigm where the goal is accellerating adoption. Existing categories have already been adopted. Just launch your marcom campaign and start selling like Dubiki said.

David Locke

Discussion:    Add a Comment | Comments 1-3 of 3 | Latest Comment

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