On March 14, 2011, Microsoft released Internet Explorer 9 (IE9). The look and feel changed with the information bar moving to the bottom of the browser and the search bar being integrated into the address bar. But overall, the change in user functionality is what affected add-ons the most. This change also created a very different experience for the user in terms of what they have to do to use add-ons after they install them.

IE9 asks for the user’s consent to enable newly installed add-ons, instead of automatically enabling them from the start:

IE9 Asks for User Consent to Enable Add-ons

When the user clicks Enable, they are shown this screen:

User Must Now Enable Add-Ons

This could lessen the chance of the user actually being able to use the add-on that they installed. They may click Don’t enable or they may just X out of the message completely because they don’t understand what it is or they are annoyed by the messaging.

IE9 also gives the user information on what is slowing down their browser and messages them on a regular basis asking them to speed up their browser by disabling add-ons:

Users Asked to Disable Add-Ons to Speed Up Startup

When the user clicks Disable add-ons, they are shown this screen:

Screen Shown to User When They Click Disable Add-ons

If the add-ons the user has installed and enabled total a load time of more than .2 seconds, the add-ons will show up on this list and the user may choose to disable them. This new functionality helps speed up the user’s browser, but it can also cause the user to want to uninstall all add-ons listed whether or not they really contribute to slowing down their browser.

On November 8, 2011, Mozilla released Firefox 8 (FF8).   This new version adds a new confirmation prompt for add-ons.  This prompt is different depending on whether or not the add-on is installed via an XPI or an EXE.

When an add-on is installed via an XPI, FF8 displays a modal dialog box with an Install Now button:

Modal Dialog Box with an Install Now Button

The user has to click Install Now to enable the add-on(s).  If they click cancel, the add-on(s) will not be enabled for use.

When an add-on is installed via an EXE, FF8 opens a new tab with a checkbox confirmation screen:

Add-on Installed via EXE, FF8 Opens Checkbox Confirmation Screen

By default, the checkbox is not checked, so the user has to check the box next to Allow this installation and then click Continue to be able to use the add-on.  If the user doesn’t check the box and clicks Continue, the add-on will not be enabled.

With the changes these new browser versions bring, it seems that the ultimate goal is speed. Each browser wants to be the fastest. These changes can be seen as both positive and negative for users.  As a positive, users may have a faster browser and not have to wait as long for load times.  As a negative, they have to take additional steps to “enable” add-ons that they have already agreed to install and in some cases, they have agreed multiple times through certain processes that confirm the user is installing what they want to install.

These changes can also be seen as both negative and somewhat positive for add-on developers. As a negative, these changes make it harder for an add-on developer because users have to take additional steps to be able to actually interact with their add-ons.  As a positive, with survival becoming harder and harder for add-ons, it encourages developers to make sure their add-on has a fast load time and it creates enough value so the user will want to take the necessary steps to enable the add-on for use.  However, even with those changes, it doesn’t ensure that the user will “enable” their add-on.  Another alternative for add-on developers might be exploring the options of building out a desktop version of the add-on so the application isn’t affected by any of these changes.

Overall, sometimes change is good and sometimes it’s not so good.  As things change though, we have to roll with those changes and allow ourselves to make the best of them.  We will just have to wait and see what comes next! Do you have any tactics to deal with browser changes?  If so, add them to the comments.

Nicole Virnig, Account Development Manager, W3i, LLC
Nicole focuses on growing W3i business relationships, making sure the  client has what they need to make them successful. If they aren’t  happy, she isn’t happy.

How important is system uptime to your customers? At W3i, we feel that it is of upmost importance that our systems are always up and running. This was one of the driving factors for our data center move back in March of 2010 (see related blog post here).
The move to the new data center was a much needed refresh to help strengthen our systems. Let’s be realistic, can anyone ever be up 100% of the time? We all strive for that, but system failure and human error will find a way to bring you down.

What if Bob made a change to an application that he didn’t realize would have an adverse effect on another system that Jane maintains? Or if Bill added a new feature to his application, but wasn’t aware of the system resources required to support the new feature? The new feature add resulted with everything slowing down due to CPU overload.

In the fast paced MVP to full blown product business we are in, issues like this come up all the time. How can one keep track of all these ties to identify when issues come up?

That’s easy, documentation right? Let’s be real though, who reads documentation? We should also remember that documentation is only as good as the contents freshness and relevance. Truth is no matter how much documentation, how many procedures are in place or how much testing goes into something; Murphy’s Law will always show its ugly head every now and again. So how do we make sure that everything is working and functioning as it should and there are no issues with your sites or systems?

That’s where system monitoring comes in. There are a plethora of different monitoring solutions available on the market today and each has their unique capabilities and offerings. Is there one holistic solution out that will fill all your needs? The answer is, probably not. You’ll likely have to piece together your monitor solution with several tools. Once you start to get all your systems covered you’ll begin to fill in the black holes of the unknown with visibility into the function resources that make up your infrastructure.

We at W3i utilize multiple monitoring solutions to try and grasp every aspect of every system and or application. We monitor CPU, memory, disk, and network utilization with Solarwinds Orion NPM while leveraging Solarwinds’ other modules such as Application Performance Monitoring (APM) to monitor services, exe’s and perfmon data and Netflow Traffic Analyzer (NTA) to monitor the bits that are traveling our network. To watch website availability we use a solution from ExclamationSOFT called WebWatchBot that hits our web properties and makes sure specified search terms are present along with a status code we are expecting users to get. We also use WhatsUpGold from IPSwitch to monitor our external availability. Then there are other applications specific monitoring solutions such as Quest Foglight Performance Analysis for SQL and some customer made monitoring utilizing Microsoft PowerShell and the list goes on and on.

From our experience there isn’t a holist solution, but by using many different solutions you should get the full coverage needed to monitor and maintain all aspects of your infrastructure. The goal in any alerting/monitoring solution should be to help keep you informed about potential issues proactively before they become problems. There is nothing worse than getting notified of issues from others outside of the group whom take pride in maintaining the systems. Leave a comment if you found a great solution for system monitoring.

Brad Gocken, Manager of Information Technology, W3i.  Brad has more than 11 years of working experience in IT related fields. He is from Minnesota and loves learning about new technologies. He also enjoys brewing and drinking craft beer.

Know the Market

It used to be that Internet Explorer was by far the dominant web browser, but these days several other browsers such as Firefox and Chrome have increased market share significantly. Statistics vary and you may find different results depending on your audience, but the top 3 browsers are growing closer in market share, as Internet Explorer continues to lose users to Firefox, Chrome and even Safari. In October, 2011, technology site ars technica recently reported that Internet Explorer dropped below the 50% mark across all operating systems.

Browser Stats According to ars technica

Other sites such as w3schools.com  and Wikipedia give Internet Explorer an even smaller share so it is a good idea to track and monitor which browsers are more common among your users. A low reading with a particular browser can also indicate a problem with your add-on.

Usage is even more splintered when taking browser version into account. Internet Explorer remains split between the last 4 major versions while Firefox is even more spread out.  By contrast, most Chrome users are using the latest version because Chrome updates automatically.

Some of the top browser makers are increasing the frequency of updates. Mozilla announced earlier this year that it will move to a rapid release cycle, with new versions coming every 6 weeks. This is similar to Google’s release cycle for
Chrome. Meanwhile Microsoft appears to be sticking with a longer release cycle for Internet Explorer, with version 10 expected early in 2012.

Recent Browser Changes

Internet Explorer 9 and Firefox 8 both introduced new confirmation prompts when add-ons are installed. This change raises a barrier for add-on distributors such as W3i’s InstallIQ. Although users go through the process and consent to install an add-on, they must consent again to accept the add-on the next time they use their browser.

IE9 displays an information bar at the bottom of the screen, and it may not be apparent to the user that it is there. Some users may miss it and after a few times IE will stop showing the bar and simply disable the add-ons. IE9 also added an Add-on Performance Advisor, which alerts the user when add-on load times exceed a certain threshold.

New Add-On Confirmation bar in IE 9

Firefox 8 has two types of add-on confirmation depending on how the add-on is installed. If you install your add-on using the common method of copying files into the Firefox extensions folder, then the confirmation prompt will open in a new tab when the browser is restarted. This prompt includes a checkbox which is unchecked by default, and is easily skipped by the user. Even worse, if multiple add-ons have been installed, Firefox will open multiple tabs, but as soon as one add-on is accepted, Firefox prompts the user to restart. Upon restarting, Firefox loses the other pending add-ons. This is a
significant barrier to installation processes that may install more than one add-on, such as InstallIQ.

New Checkbox Confirmation Tab in Firefox 8

Fortunately there is another method you can use, which should yield a higher rate of add-on enablement. You can package your add-on in an XPI file and install it on the Firefox command line. An XPI file is a Zip file containing the add-on components and an XML manifest. When add-ons are installed using the XPI method, Firefox displays a modal dialog with an “Install Now” button which is much more likely to be accepted by the user. In addition, multiple add-ons can be combined into a single install, with a single prompt to enable all of them.

New Add-on Confirmation in Firefox 8 for Add-Ons Distributed via XPI

InstallIQ now requires add-on partners to package their add-ons in XPI files so we can better manage the installation process. InstallIQ will automatically combine multiple XPI’s and install them by launching Firefox.

Looking Ahead

With browser updates coming at a faster rate and add-on installations becoming increasingly difficult for the user, it is important to keep an eye on forthcoming changes and be prepared to adjust your products.  Mozilla makes future Firefox releases available as they are being developed. They have a Beta channel for the next scheduled release, and the Aurora channel for changes that are further out.

Similarly, Google has multiple release channels which you can install for various platforms.

Meanwhile Microsoft is providing a preview of Internet Explorer 10. Microsoft has said that the Metro version of IE10 will not allow any add-ons, although the desktop version will.

Regardless of the nature of your add-on, it is more important than ever to streamline your development process and be ready to quickly make changes to adapt to the ever-changing browser platform.

Bill Zitomer, Software
Development Team Lead, W3i, LLC

Bill uses his over twenty years’ experience to build W3i’s core desktop products as well as back-end technologies.

What’s more important, the number of installs attained or the number of installs chosen by desire and retained? The answer will dictate what kind of comments you want to leave on this post.

The blogosphere has blown up over the past couple of weeks around a debate I thought died years ago: opt-in versus opt-out.

The catalyst for this post revisiting the debate comes from a company that formerly operated in an opt-in software marketing space  moving to the other side  of the user choice fence, while another, Facebook,  arguably continues to struggle with opt-out backlashes from its huge and growing huger (yes, huger) user base.

So what’s the deal?  When it comes to creating value in connecting people with applications, it’s a no-brainer. Let user consent, control and choice drive the install car and everyone wins.

When it comes to distribution, The Rolling Stones are wrong; you can always get what you want

Opt-in ensures that the average customer passing through an install process gets what they want, without surprises. When customers are opting in to an installation, the user isn’t the only one that’s winning and getting what they want. Advertisers have something to gain from users consciously choosing their offers: a lower attrition rate.

Installs vs. Qualified Installs

In the long run, what does gaining installs in an opt-out strategy get you? What’s the long term value of an install that wasn’t wanted? What good does the install do if it’s immediately uninstalled or never used? Worse yet, what happens when the process provides a bad user experience now associated with your brand? In the court of public opinion, qualified installs stand up strong for all: user, publishers and advertisers. Don’t get me wrong, not every install in an opt-out process is unwanted, but it follows that the attrition rate is much higher than with opt-in.

Street Cred: It matters in app distribution

Certify this, approval that. There are a plethora of industry “stamps of approval.” W3i is proud to be a member of the TRUSTe Trusted Download program. While that program contains some flexibility, opt-in truly respects the user’s privacy and adheres to user’s choice and consent principles, which are typically best practices in the internet space.

It’s not about the dollar, right?

When the question comes up, opt-in versus opt-out, one of those vehicles is clearly being driven by revenue, the other by user experience and value. You can massage the numbers however you want, all I’m saying is: if it looks like a duck and quacks like a duck . . .

Often times, marketers focus solely on getting their product installed by as many users as possible. Although high numbers of product installs are important, retaining users may be more valuable in the long run. W3i understands the importance of user retention and has a few different ways of finding the right user for your product using InstallIQ℠, the installation manager for smart software distribution.

One way W3i assists their clients with finding valuable users is through the Affiliate Feedback System (AFS). AFS is an optimization tool that gathers information on users’ computers compatibility that would show preponderance for an advertiser’s application. To implement AFS, W3i provides the advertiser with a unique ID for each install. The advertiser then relays performance data back to W3i for each ID. W3i uses this data to find common characteristics (similar traffic sources, browser versions, operating systems, etc.) among users and then recommends users for the advertiser’s application based on where the application performs the best.  Now that’s smart software distribution.

Another source that W3i uses to gain insight on users is the InstallIQ Updater (IQU). IQU is a resident application that provides users with an enhanced download and software usage experience. The benefit of IQU is that it tracks statistics for both installs and uninstalls, which can then be used to understand attrition, create a better user experience, and add insight into issues with installs/uninstalls.

W3i also allows full customization with the thank you page. The thank you page is the first experience users have with your product and W3i sees the value in giving clients the ability to customize it so as to see the most impact. A few ways a thank you page can be used is for remarketing, additional product information, or confirmation that the product has been installed.

How great would it be to make more money from each install? W3i has spent considerable time finding solutions to help clients make the most out of each install using InstallIQ.  When are you going to start capitalizing on smart software distribution by becoming part of the W3i Application Network?

Jessie Golombiecki, Marketing Specialist, W3i, LLC
Jessie uses her experience in internet marketing, graphic design, and testing to lead the charge in marketing management optimizing all touch points with consumers.

W3i Improves Ad Revenues with the Yahoo! Toolbar 

W3i searched for a way to offer consumers more value and to increase revenues through its free and trial computer applications.  The Yahoo! Publisher Network helped it do both by adding the Yahoo! Toolbar to W3i’s application network to monetize search ads and by partnering with the company to optimize user experience. 

Yahoo’s Full Case Study

Software distribution is always a problem that publishers face.  Unless you have a loyal audience that you can market to within your app to gain further distribution, it’s becoming exceedingly difficult to get noticed across all platforms–desktop, browser, social and mobile.  Consider these numbers: currently, there are roughly 12,000 add-on’s in the Firefox add-on gallery (AMO).  In the Android Marketplace, at the end of December 2009, there were 20,000+ apps.  At the end of January, Apple’s App Store had a staggering 140,000+ third party apps available!  The number of desktop apps is in the millions.  Just imagine how these numbers will swell this year alone.  How does a publisher get distribution in a pool so massive? 

Here’s the problem: app stores are not built for software distribution for all publishers.  Only a select few are able to rocket to the tops of the charts and capture users’ attention.  These sites suit the aggregators well as they capture both the short and long tail, but what if you’re at the end of the long tail?  There are many ways to combat this; publishers need to seek more proactive ways to improve discoverability.  At the same time, publishers need to take advantage of solutions, such as W3i’s InstallIQ, that are built around distribution for all.  InstallIQ recommends relevant apps to users when they install comparable applications.  If you’re a publisher and have an app, it’s important to get face time with users.  W3i has nearly 10 years of experience connecting people to applications; that’s what makes us unique – that is our job and mission.  App stores are great for scale, great for the aggregator; but W3i can do what the app stores can’t: provide a software distribution solution that puts your application directly in front of users, out of all the clutter.

Eric Montag, Product Manager, W3i, LLC
Eric is a Pragmatic Marketing Certified Product Manager and uses his experience in internet marketing to lead the charge in product research, planning, and execution from both a consumer and business standpoint.  

Jackpot Rewards Selects W3i for Consumer App Distribution

St. Cloud, Minnesota, February 9, 2010 – W3i, provider of marketing solutions that increase distribution, revenue, and engagement for consumer applications, announced today that Jackpot Rewards is now part of the W3i Application Network.  Jackpot Rewards, a sweepstakes and shopping rewards program, is using the W3i Application Network as a new application distribution channel for its free Jackpot Rewards application.

“The W3i Application Network provides a mass distribution channel for companies with consumer applications that are seeking customer acquisition beyond paid search and social media,” said Rob Weber, VP of Business Development at W3i.  “Jackpot Rewards recognizes the opportunity the W3i Application Network offers to grow its membership by expediting the discovery of its free shopping and sweepstakes application to millions of new users.”

Jackpot Rewards has a new and unique shopping and sweepstakes product for consumers, called “Shop to Win”.  “Shop to Win” is free to consumers and gives them the chance to win $500 a day and a $100,000 Jackpot for every $5 they spend at over 2,000 leading online retailers. 

“W3i’s distribution capabilities give us the opportunity to dramatically increase our memberships with a trusted partner,” said Jim Miller, the CEO and Founder of Jackpot Rewards. “We are excited about the results to date and look forward to a long-term relationship with W3i.” 

 About W3i: 

W3i increases revenue, distribution and engagement for consumer applications and plug-ins. W3i uses a network approach combining the demand for free applications monetized by the distribution of relevant applications when the consumer is in the installation mindset.  The W3i Application Network uses Install IQ, W3i’s proprietary Windows installation manager, the first installer to be certified in the TRUSTe Trusted Download Program.  Tested and optimized on over 350 million installs–currently 9.6 million installs monthly, W3i will prove to be a valued distribution partner in growing your consumer application business. To learn more, visit the W3i Application Network.

Press Contact:

Deborah Manthei

Director of Marketing Communications

320-257-7571

deborah.manthei@W3i.com

The names of companies and products mentioned herein are trademarks of their respective owners.

The blogosphere is covered with posts that would have us believe that desktop applications and software are already dead (cloud, mobile, SaaS); however, retail sales for desktop applications and software are a multi-billion dollar industry. In April 2009, the NPD Group reported that PC software retail sales were around $3.4B per year and holding steady. The major change, however, is the impact the web is having on how desktop applications and software are distributed.  According to NPD, web application and software distribution has increased from 11.5% to 17% in the last 4 years.

Following I explain how the web has influenced software bundling.  I start with a brief background of OEM software bundling.  Next I discuss a new type of software distribution that we call recommendation based distribution, and conclude with answers to frequently asked questions regarding recommendation based distribution.

Software Bundling

Software providers (OEM – original equipment manufacturer) for decades leveraged value-added resellers (VARs) for driving sales of their software as part of a hardware/software package.  These marketing partnerships result in what is often referred to as a “bundle” due to the fact that complementary services are bundled together.

A common example is a new computer that includes Microsoft Windows®.  A few other applications routinely bundled include Office®, security, internet browser, and toolbar applications. 

This type of distribution is big business.  Here are a few examples:

1. HP & WildTangent – WildTangent became an immediate force in the casual game world because of the huge bundle distribution agreements that they signed.
2. Storage devices bundled with back-up software such as Carbonite with Seagate and Memeo with Western Digital Technologies.

User acceptance over the practice varies based on the type of users a VAR sells to as well as the quality and quantity of applications that they bundle. The two primary concerns raised by consumers are system performance and the nuisance of removing unwanted software.

Recommendation Based Distribution

Is software bundling fundamentally flawed?  Do users want to receive a more affordable package by having additional software marketed to them?

Now that many users are connected to the web, software can be merchandised effectively without preloading on the users’ systems in advance.  W3i research showed that software bundling is not fundamentally flawed.  Users are however, most receptive to receiving software offers if they are involved in the application selection process.  Users can see recommendations for other applications when they first run a new computer, attach a new external device, or download an application from the web.  The recommendations can call out to the web to retrieve the files required for presenting the recommendations, downloading, and installing.

W3i to facilitate this process created its own proprietary technology, InstallIQ, which supports a fully web-capable solution allowing us to create a software distribution experience that resembles an online shopping experience. 

Here is an example of a website, Wallpapers.com, that runs InstallIQ during installation:

Note the consistency between the initial website and continued branding through the installation process.  We call this feature installer skinning.  By leveraging the website’s brand equity and style in the installer we create a transparent and consistent experience that enhances usability and increases conversions (see our post Creating Consistency to Increase Conversions).

The same flexible technology is used to improve the presentation of software to users:

Notice above that the user has a clear and consistent navigation experience.  This navigation style was influenced by a case study, published by TRUSTe, as well as improvements such as a shopping cart feature that was added based on user feedback.  The cart shows specifically what applications were accepted followed by a check-out process where the user can review all of their selected applications and change their selections before the process is completed. 

Some providers struggle with clear and consistent navigation because it is challenging working with their existing installation packaging technologies.  Their user navigation requires very different buttoning when a recommendation is presented. This is something I like to call “opt-irritating”.

In summary, the web is enabling an evolution in software distribution and software bundling.  It is so different from how VARs bundled in the past that we feel a more appropriate category descriptor, for this methodology is recommendation based distribution.

Frequently asked questions

• Is this business model right for my software?  How will my users respond?

Software with a low propensity for users to purchase have the most to gain. Frequently, developers are experimenting with multiple business models and a hybrid approach wins out. For example, a leading security application offers a free light version which gets heavy downloads, generates revenue from advertising using installer recommendations, and later pitches premium paid services to its users.

The response by users vary greatly from one implementation to another. A software or application provider’s reputation is highly influenced by the quality of software they provide. Distribute high quality software which is monetized through a high quality bundle experience and users can and will be very satisfied.

W3i has an experienced staff that works closely with software providers to define the solution which best suits their needs, including support on decisions such as the:  

• • Customizable look and feel
  • Select which, and how many, applications you want to recommend
  • Determine when you want to present the recommendations, whether it is with new installations or with special upgrades
  • Data-driven recommendations for optimization
• Who should I form a marketing partnership with?

Most consumers and developers are in agreement that security and trustworthiness are key when choosing a marketing partner.  Users’ trust is earned by providers who define, educate, and simplify the process so users can effectively take control.

There are a few techniques you might consider when selecting marketing partners.  How recognized are their brands? How useful is their software to your users? What comments, reviews, or ratings have been written about them? Ask your users what they think about the partner or think about how your user persona would most likely respond.  What commitment do they make in educating users about their practices and policies?  Do they have any third party validation and monitoring in place such as certification in the TRUSTe Trusted Download program?

Brands continue to play a key role.  Partners should stand behind their practices with full disclosure and branding.  They should proudly make visible who their marketing partners are instead of burying themselves in a privacy policy or by engineering their technology so it cannot be distinguished on its own.  Be cautious of providers with little or no reputation or experience.  If very few people say something positive or negative about them and they have significant distribution volumes, it says something about their commitment to creating awareness with their users.

• How many additional offers should I present in any single installation?

W3i conducted a test where 0, 1, 2, 3, 4, and 5 offers were tested.  The results showed that the quantity had a minimal impact and that the relevancy of the offers was more important.  Relevancy impacts whether the user will complete the installation of the software, keep and use the software, and whether they will accept offers.

Be sure to consider not only how many offers you distribute but whether or not you will allow the offers to include other offers in their updates or a subsequent run process.  W3i’s policy, which it enforces, prohibits advertisers from promoting additional offers.  Some companies say they only distribute one offer but they do not have policies against what their advertisers distribute and so in reality, users that accept a single offer actually end up getting pitched more than one offer, often within moments of downloading and installing.

As you can see online recommendation based distribution borrows from but also significantly enhances software bundling to make it more appealing to users. The solution continues to evolve but the basics laid out above are the foundation for successful online software distribution.

By mastering recommendation based distribution, your applications can leverage a proven model that enables you to be relevant through effective distribution and monetization.

Get more in-depth information about software or application distribution through W3i’s blog, newsletter, or reaching out to us directly.

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

Kris Tufto was the CEO of Minnesota-based, Jasc Software during their growth phase from from 1998 to 2005, a period that saw Jasc grow from what was rumored to be $5 million in revenue to over $30 million in revenue before their eventual sale to Corel in 2004. Jasc Software was most widely known for their Paint Shop Pro graphic editing program. Kris is presently working on his second ramp up at Minnesota-based Marketing Bridge, a SaaS-based channel automation software.

Rob Weber is a co-founder and VP of Business Development at W3i, provider of marketing solutions that increase distribution, revenue, and engagement for consumer applications.

Interview December 10, 2009

Rob Weber:   What Minnesota tech entrepreneurs do you most respect/idealize?

Kris Tufto:  Seymour Cray (Cray Research), Bill & Richard Lawson (Lawson Software), and Joel Ronning (Digital River).

Kris Tufto:  By the way, did you know that Jasc’s founder, Bob Voit was from St. Cloud? You didn’t know that so many great tech companies had their roots in St. Cloud, Minnesota, like W3i, did you?

Rob Weber:   Digital River is truly one of the great Minnesota start-up success stories. I understand that Joel Ronning was on your Board of Directors while at Jasc.  For those of us who do not know Joel as well as you do, can you tell us what you see as his greatest strength as a tech entrepreneur?

Kris Tufto:  Joel’s greatest strength was his understanding of the power of distribution and how to build an aggressive culture.

Rob Weber:   What were the core things you needed to do to grow Jasc Software during your tenure?

Kris Tufto:  From an internal perspective, develop a Product Management function, better organize our sales process, and reorganize various employees to different roles. From an external perspective, I had to formalize software distribution channels, change industry trends as it relates to the product cycle, and implement a global release strategy.

Rob Weber:   You mentioned software distribution a couple times now. What were your core software distribution strategies at Jasc?

Kris Tufto:  We broke them down into four channels, and those were direct, retail, VARS, and International. With our direct channel, we relied on Digital River as our commerce platform. Many consumers expected to purchase Paint Shop Pro direct because it was shareware. In my last years at Jasc, we utilized paid search marketing as well as affiliate marketing, but during my tenure they did not provide substantial growth opportunities. In retail, we relied on big box partners like Best Buy, CompUSA, and Walmart. Best Buy was our top partner. With VARS, we mostly focused on North America, with partners like Software Spectrum and Tiger Direct. International was a compilation of direct, retail and VARS, depending on the country.

Rob Weber:   Fast forward four years to today, if you were still running a consumer software company like Jasc Software, what would you expect to change in terms of software distribution?

Kris Tufto:  Retail would be only a fraction of what we were seeing back then. We would rely much heavier on direct marketing, like paid search and affiliate marketing. I would also use W3i’s distribution channel.

Rob Weber:   In the consumer application world, there is a lot of buzz around social apps and mobile apps. What do you think about using these new platforms in a consumer application business today?

Kris Tufto:  At Jasc, we were very Windows centric. We would look to new platforms like Google Operating System. The problem in using alternative operating systems is the development resources they require. When you have a very big legacy code base, it is a tough decision to port to a new Operating System.

Rob Weber:   What were the unique challenges you faced in growing Jasc in Minnesota?

Kris Tufto:  The Midwestern culture is not a high tech culture. It is not fast moving, it is more engineering oriented and methodical– where you take the time to get everything right. In high tech, you need to create a culture where you expect to get only 80% right. At Jasc, I threw out “Minnesota nice”.

Rob Weber:   How did you compete while at Jasc with your Paint Shop Pro application while facing a David versus Goliath competitor in Adobe and their Photoshop application?

Kris Tufto:  We looked at Adobe Photoshop as the sun. In order to beat them we always focused on edge markets and motored around them.

Rob Weber:   Kris, I think the world’s consumers and designers who use photo and graphic editing software owe you and your team at Jasc a big thank you. Why? You guys came around and lowered the price point significantly in the product category of photo/graphic editing applications. Jasc was in many ways as good as Photoshop, and in some ways better at a much lower price point. Before Jasc, there was no substitute $100 product, there was only Photoshop at over $400.

Kris Tufto:  You are right, Rob. Adobe didn’t think Jasc was a real threat until they released Adobe Photoshop Elements as a competitive response in 2001 to 2002 timeframe. This validated our model, and caused us to work even harder.

Rob Weber, Vice President of Business Development and Co-Founder, W3i, LLC
Rob is an Internet marketing pioneer with over nine, profitable years evolving W3i in the Integrated Interactive Media industry.