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Closing the Bridge Between Marketing and Technology, By Luis Fernandez

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Closing the Bridge Between Marketing and Technology, By Luis Fernandez

The business of software: Pick One Job and Charge For It

Posted on December 3, 2007 By Luis Fernandez

Software as a Business is not a theory. It is a daily grind of choices that look small in the morning and decide your month by night. I have been shipping and selling software long enough to know the difference between a cool demo and something a customer will pay for twice. Today I want to share what keeps working for me and for the teams I learn from, because the web feels loud right now with people announcing launches and invites and private betas. There is signal in there. You just have to keep your head down and watch the cash register, not the applause.

What really moves the needle: pick one job, make it fast, charge for it

Every successful Software as a Business story I have seen starts with a stubborn focus on one job. One job the customer is already trying to finish with spreadsheets, sticky notes, or late night email. Do not ship ten half features. Ship one thing that turns a daily pain into a sigh of relief. If you have a list on the wall with twenty things, draw a box around the one that makes someone say thank you out loud.

Speed matters more than polish. First run has to feel like magic in under five minutes. No tours. No welcome wizard that asks for twenty fields. Get them to a win and let them discover the rest later. I time this with a kitchen timer on my desk. If someone cannot finish the core job before the bell, I cut steps until they can. This is how you raise activation and lower support at the same time.

Then you charge. Not next quarter. Now. A free trial is fine, but put a clear price on the screen. If you sell on the web you have two simple choices right now. Subscription with a credit card, or a one time license with upgrades later. Both work. What does not work is a foggy promise to make money later. Price where it hurts a tiny bit. If your price gets no pushback you are too cheap. If every lead winces you are too high or you are talking to the wrong crowd.

Watch these numbers daily. Trial to paid, churn, average revenue per account, support touches per account, and time to first value. Build a tiny habit. Coffee in hand, open your spreadsheet or your homegrown dashboard, and write them down. When one drifts the wrong way, do a one action fix before noon. A tighter welcome email. A shorter form. A simpler plan page. No committees. Just a small change and ship.

Distribution beats features: get found, get tried, get shared

There are more products than attention right now. The way through is not more features. It is better distribution. The basics work. SEO still pays if you write like a human and answer real questions. The blog post that teaches is a quiet sales rep. Write three posts that make your buyer better at their work and link tastefully to your product. Submit to the places people hang out. A thoughtful link can survive on Hacker News clones, Digg, Reddit, or a forum that has been around since dial up days. If a community hates self promo, share a tutorial with no pitch and let your bio do the work.

Buy traffic only when your funnel is ready. AdWords still works when you pick intent keywords instead of vanity ones. Landing pages win or lose on the headline and the first form field. Pair the ad and the page like a two step. Same promise, same verb. Track clicks and signups in Google Analytics and do not ignore branded searches. Someone is searching your product name right after they see a tweet or a blog mention. Own that experience.

Think in loops not bursts. An email course builds trust. A light weight referral bonus turns happy users into a sales channel. The new social platforms are noisy, but they do drive spikes that turn into steady traffic if your onboarding is strong. The Facebook platform is throwing open doors for small apps. If you can hook into that without spamming, it can be a tailwind. Same for small touches on Twitter. Short and helpful beats gimmicky all day.

Support is marketing. Put your support email in plain sight and answer fast. A crisp two line reply that solves the issue is a review you did not have to beg for. Keep canned replies, but always add one sentence in your voice. When a thread becomes a feature request, say thank you and put the idea in your queue. If three different customers ask for the same thing in a week, stop what you are doing and ship a small version of it. Then write back to them with the link. They will share it for you.

Money keeps score: cash first, then everything else

You can start with a server on AWS and a credit card, or a single box in a closet at a friendly colocation. The point is to keep monthly costs light until you can pay them from revenue. Fancy gear is a trap. Spend where it saves time. Pay for uptime monitoring before you pay for a fancy logo. Pay for a good payment gateway and fraud checks before you pay for branded swag.

If you are bootstrapping, your runway is the time between today and when the bank account goes red. Sell early. Pre sell if you can. Offer a charter plan at a fair discount in exchange for feedback and testimonials. Keep your books clean. You do not need a CFO. You need a spreadsheet that tells you where the money went and how much came back. Track MRR, cash in hand, payables, and receivables. Avoid yearly plans until your churn is stable. Upfront cash feels great and can bite you when refunds come knocking.

If you take outside money, know what game you are playing. Angels and small seed checks are friendly until the milestones become a scoreboard you did not pick. Decide if you are building a steady SaaS with patient growth or a rocket ship that needs to own a category. Both are fine. The wrong one is the one that does not match your appetite for late nights and big bets. Either way, pricing and support are still yours. Do not hand those to a committee.

Payments in the wild are messy. PayPal works and will freeze your account if a few bad chargebacks stack up. Authorize Net is boring and that is good. Offer credit card and PayPal both if you sell outside the United States. Be clear about refunds. If you sell to Europe, read up on VAT. If you sell in multiple currencies, pick one primary currency and keep a simple, honest conversion policy. A confused checkout kills deals.

Myths versus reality from the trenches

Myth If you build a great product users will find it.
Reality Great products die in quiet rooms. Distribution is oxygen. Plan for discovery on day one.

Myth Free brings scale and scale brings money.
Reality Free is a cost center until you have a reliable upgrade path. Watch your support queue before you chase a big free tier. A smaller, paid base that loves you beats a stadium of tourists.

Myth Add a feature and churn will drop.
Reality Churn usually drops when setup gets easier and the value shows up faster. Most churn is failure to launch, not lack of a rare edge case feature.

Myth The iPhone and the new wave of shiny apps mean desktop and web apps must be pretty to win.
Reality Pretty helps. Clear wins. Clarity in copy, in onboarding, and in pricing closes deals you used to lose.

Myth Community buzz equals traction.
Reality Traction is paid accounts that stick around. Press is a sweet sugar rush. The invoice page is the protein.

Practical checklist for this week

  • Write the one line job your product does for a buyer. Put it on your home page. Bold the verb.
  • Time the first run. From signup to first result should be under five minutes. Remove steps until you hit it.
  • Put your price where signups see it. Add a plan that matches your smallest serious user and a plan that makes an enterprise buyer feel safe.
  • Ship a win email that lands minutes after signup with one tip and one link that gets them to value now.
  • Pick three intent keywords and ship a matching landing page for each one. Track signups and activation for those pages only.
  • Send a friendly message to the last ten users who canceled. Ask one question. What did you hope to do that did not happen. Use their words to fix the top friction point.
  • Measure trial to paid, churn, support touches per account, and average revenue per account daily for a week. Share the numbers with your team in plain text.
  • Set up basic uptime alerts that ping you by text. Downtime turns praise into refunds.
  • Clean up checkout. Show accepted cards, support contact, and refund policy in one tight block near the pay button.
  • Schedule one customer call. Not a demo. A listening call. Ask what a normal Tuesday looks like and where your product fits.
  • Publish one helpful blog post that teaches a skill your buyer needs. Link your product like a tool within the post, not a banner.
  • Review your free tier if you have one. Cap it so your support queue does not drown your team.

Bonus for the brave Remove one feature you are secretly ashamed of. If you wince when someone clicks it, it is hurting you. Replace it with a better empty state and a note about what you plan to do next.

Final thought Your code can be elegant and still be a business. The difference is a price, a customer, and a team that knows which numbers matter. Keep it simple. Keep it honest. Keep shipping.

Ship, charge, listen, repeat.

Business of Software Software Engineering

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