Eric Sink on the Business of Software

by Eric Sink

ISBN 1-59059-623-4 (Apress) © 2006

Choose Your Competition, p. 157:

Most of the time, when you find a market with no players, it's not really a market. Money is made by beating competition, not by avoiding it. If you want to start a new business, don't look for an idea that has never been tried. Instead look for someone who is serving real customers but not doing it very well. Find a way to do it better.

Marketing is not a Post-Process Step, p. 153:

What features should a product in this position have? This question brings us back to the point of this article. The reason marketing is not a post-process step is that you have to design your product to fit the market position you want it to have. If your product doesn't have the features and atttributes that are expected, then you probably can't get it established in that position.

Tenets of Transparency, pp. 237-244:

1. Have a weblog.
2. Offer web-based discussion forums.
3. Don't hide your products problems.
   • Reassure users your product will be growing deeper, not just wider.
4. Don't annoy honest people.
5. Offer a painless demo download.
6. Offer a money-back gurantee.
7. Share a little about your financial standing.
8. Talk about your future plans.

Product Pricing Primer, pp. 249-250:

Pricing and positioning are inseparable. Don't bother trying to figure out your price point until you first figure out what position your product will have in the market.

Ask yourself these four questions:

1. Who are your competitors?
2. How is your product different from your competitors?
   • You should have a very short answer to this question, and you should be able to deliver it quickly.
   • Price should not be your primary differentiator!
3. How do you want to be known in the market?
   • You need to be able to describe what position you want to have in terms of the way you want your target market to perceive you.
4. What are the prices of your comptitors' products?