How can I figure out how much money a new software idea is worth?


1

I have an idea to develop an application:

  • "Plain old" Windows application
  • GUI based
  • It does some "tricks" with clipboard and saves a history (It is a bit different than the ones one can easily find searching on Google)

So the idea seems quite nice to me (I would definitely be willing to use an app as the one I projected if it existed).

Now the most difficult part for me is to understand:

  • Are there enough people that could like my app?
  • How much they would pay (or how much I could gain with advertising)?
  • How much money would I gain if I make and sell the application

Do you have any suggestion about any method or tool?

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asked Nov 24 '11 at 02:33
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Paolo
123 points
Top digital marketing agency for SEO, content marketing, and PR: Demand Roll

3 Answers


6

The easiest way to answer the questions you've asked is to ask the people that might buy it. Everything else is just conjecture.

Running some Google ads is a good way to do this and it's a lot cheaper than developing a product blindly.

Testing Interest Run an ad for keywords people might search for your product. When people click on the ad, your page should consist of a "sales" page with an offer to opt-in to a list. However, note that the success of your idea will not only be based on the merit of your idea, but your ability to write good Google ads, and good sales copy.

However, although this may seem like a lot of work, it will be less time, energy, effort and money than blindly building a product that in the end, doesn't sell. And...just think, what does this process give you? It not only validates the number of people interested in your idea, but it gives you a customer list as a side benefit!

Testing Price Using Google ads to drive traffic, create a sales page. Google ads allow you to split test the page so you can offer two sales pages with different prices. When people click on the buy button, the page will not check them out. Instead, it will take them to a product not available page with an opt in to email them when the product is available. You could even offer a special discount code to them for opting in.

Final Question Your last question depends on a great number of factors, so you will have to calculate it based on how much it costs to develop the product, how much it costs to run your ads, your conversion rate for Google ads, the conversion rate for your sales page, and of course, how much you charge.

Good luck!

answered Nov 29 '11 at 10:31
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Ralph Miller
96 points
  • Great answer, thanks :) – Paolo 9 years ago

2

Will you be the developer on it or the visionary?

Many Clipboard applications are there for users to download for free as well as paid. Just make sure that you either have a edge on why yours is better...is it UI Design? Is it Features? Is it Price?

If you are the developer on it, then no problem, code till you have the features you think it needs...but if you are pouring money into Development, go in with a solid plan and not have scope creep.

For most people, Copying and Pasting one at a time suffices. There are times when even those people need a utility that does multiple copies and other tricks, but its not all the time.

Secondly there are people who deal with copying and pasting as thier job...but those are far less than normal.

Pricing it $9.99 would be a smarter move than $39.99, becasue at $40 people will think twice at the task at hand...over the $10 price tag for such a utility, unless you have features in there that justify $40 and can be used daily to make thier life easier and get a job

answered Nov 24 '11 at 02:51
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Dev Company
21 points
  • Thanks for your advice. I will be the visionary and the developper. The software will do something that I have never seen around, not just something like this http://www.google.fr/search?gcx=w&sourceid=chrome&ie=UTF-8&q=clipboard+recorder 9.99 will be a fair price, still I would like to know if I will sell 100 or 10 000 pieces of it :) – Paolo 9 years ago
  • Seems like a crowded market already, and you're only audience would probably be windows power users. Your app has to provide discernible value. If it will save me $1 a day, might be willing to pay $10 for it. But if it saves me 2 or 3 seconds per use and doesn't actually help me make money any faster, then there is probably no value to me and I would not be willing to pay for it. Put yourself in the buyer's shoes. How much would you pay? – Mike Nereson 9 years ago

1

"Pricing it $9.99 would be a smarter move than $39.99, becasue at $40 people will think twice at the task at hand"

Sorry but this is a flawed logic. Have YOU ever bought something you didn't want , need, didn't work quite right but t'was only ten dollars! Didn't think so. People will buy when it works for them. They will pay the asking price - unless the price outweighs benefits, in other words is not worth it.
Pricing the product correctly is important because why sell something for $10 where people would pay $20 or $30 just as well. Also, what if instead of selling it for $40 you could sell 3x as much for $20?

answered Dec 1 '11 at 04:24
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Maciej
120 points
  • I would also add that in many occasions people infer the quality of a good from its price. For example when choosing a bottle of wine: if I have to pick one and do not really know anything about the quality of my possible choices, I would think a bottle costing 20$ is better than one costing 10$. – Paolo 9 years ago

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