eDS
Posted April 14th, 2004 @ 12:42pm by Erik J. Barzeski
On April 5, eSellerate launched a new service: eSellerate Download Service (or eDS):
Customers purchase eDS for $4.99 per order, which locks in the download guarantee for one year. You receive $1 of the eDS sale amount.
eDS is, by default, "opt out." Every time someone clicks "Buy Now" on our site, a $4.99 charge is added to their bill. They can remove it, and I can change this policy to opt-in (I've since done so).
I'm not sure whether I like this option or not. Do I leave it on, potentially netting us $1/sale but also potentially scaring customers away ("I thought FTPeel was $19?!") xor (heh heh) do I turn this feature off, allowing only those customers who seek out eDS to purchase it? What real benefit does eDS offer when FSS uses the same application for both demos and registered copies?
Since its introduction on April 5, over 50% of our customers have purchased eDS.
P.S. Rosyna has thoughts too. We had a conversation today and both turned it off at about the same time. They're seeing an attach rate at around 90%!
Posted 14 Apr 2004 at 12:51pm #
How's this for some math. FTPeel costs $19. We are "taxed" between 10 and 15% for eSellerate's services. That means we net at least $16.15 for each sale of FTPeel.
If 16 people come to eSellerate's page intending to buy a $19 FTP app and 15 buy FTPeel + eDS, but one of them turns away without buying anything because they're "shocked" by this $4.99, we make less money ($17.15 * 15 = $257.25 vs. $16.15 * 16 = $258.40).
Posted 14 Apr 2004 at 12:57pm #
Evil or Not Too Evil?
Our order processor, eSellerate (part of MindVision) decided to add a new "feature" to our store called the eSellerate Download...
Posted 14 Apr 2004 at 2:13pm #
I don't know if Aladdyn uses eSellerate, although I think they use a different service (Digital River?). Their service has this option, but it's opt-in, which I think is a better idea. Personally, I like that you have a demo which is downloadable anytime and can be activated by using the right serial number. I don't see why the ability to download software that you've already purchased should be an extra charge, and I've never opted into Aladdyn's, although I purchase pretty much every major upgrade they release of StuffIt. Rather, I make sure that I have the downloaded installer in a safe place and make sure I have a backup of it.
I t think the opt-out method is disingenuous. I suppose the service is actually useful to some people, but my guess is that most don't even notice that they are purchasing it.
If I were publishing software for general download (which I'm not), I would simply go with your method of offering a demo that becomes fully functional with the right serial number. Any of your customers can download a replacement any time.
Chuck