Add-On-Con was a buzz-worthy event for marketers and developers of browser add-ons.  My last posting recapped how browsers plan to lead all application platforms.  If you didn’t catch it, read it here.  In this post, I will cover the Add-On-Con buzz on add-on business models.  In my next post, I will cover the Add-On-Con buzz on add-on distribution channels.

Add-On Business Models

Paid Model

• Marketplace for add-ons.
  • Developers agreed that a marketplace, promoting the buying and selling of add-ons, is desirable.
    • The marketplace should provide an embedded payment platform.
    • A concern was raised by a developer, Chris Finke, regarding whether or not you could establish a user-base if you charge users.  Add-ons rely heavily on receiving buzz through the add-on galleries and with users which could be less effective if you begin charging as this creates higher friction.
  • Firefox mentioned a marketplace was one of the most commonly requested features from developers through AMO.
  • Firefox announced its plan to release a marketplace at the end of 2010.
• One developer, Eric Jung from FoxyProxy, is already having success with charging for their add-on.
  • Subscriptions he recommended as the best method for charging for add-ons because they allow the developer to create an ongoing stream of revenue which supports continuing to update the software.
  • Eric prefers leveraging the freemium model to drive the initial paid conversions.
• Contributions (donations) so far are not impressing anyone with Firefox.
  • Top developers are earning just $1,000 per month.

Ad-Supported Model

• Promotion – Developers are using add-ons to promote websites that have their own business models.
• Search Advertisements – Yahoo spoke about providing search advertisements, for syndication, as a source of revenue for add-ons including, but not limited to, toolbars.
• Installer Recommendations – I shared results from a recent W3i survey of 502 users which showed that of the ad-supported solutions, app/add-on marketers preferred the method of users seeing ads within the installation or download instead of ads in their application, or participating in market research.  Check out W3i to learn more about generating revenue through the installation of your add-on.
• Data – It came up several times that the data captured from add-ons is a potentially lucrative source of revenue.  Appeasing user’s privacy concerns and monetizing data were viewed with skepticism by most developers.

During my ten years of experience distributing add-ons and consumer apps, I learned that it pays to test various business models.  There is continual evolution, so it pays to discover and test new models to stay afloat.  For more information on using the W3i Application Network to generate revenue for your browser add-on, click here.

Ryan Weber, Vice President of Corporate Strategy and Co-Founder, W3i, LLC
Entrepreneur and pioneer of Internet marketing focusing on increasing revenue and distribution for digital downloads.

» Get Our Newsletter

[ Wednesday, December 30th, 2009 | 10:07 am ] by Ryan Weber
Categories: Article, Browser Plug-ins/Browser Add-ons, Consumer Applications, W3i, W3i Application Network
Comment | Trackback |

2 Responses to “Add-On-Con Recap: Buzz on Browser Add-on Business Models: Part 2”

1. Referencez votre site sur tagswords.com | Bons plans du web Says:
   January 5th, 2010 at 2:13 pm

   [...] Add-On-Con Recap: Buzz on Browser Add-on Business Models: Part 2 … [...]

2. Add-On-Con Recap: Browsers Aim to Lead All Application Platforms: Part 1 - W3i Blog Says:
   January 8th, 2010 at 2:36 pm

   [...] Add-On-Con Recap: Buzz on Browser Add-on Business Models: Part 2 » [...]

Leave a Comment