Marketers are challenged with how to grab people’s attention and how to keep it.   Software marketers are no exception.  Of course, given the nature of software applications, software distribution campaigns can become more creative than your typical “durable” product. 

With the recency of the Super Bowl, I remember the one-time-only showing of the Orwellian Macintosh ad, which generated considerable interest in Apple’s Macintosh; but there are more light-hearted examples than 1984.

• Thanks to LimeWire for some search power and a new recipe combination

When LimeWire launched their application, the LimeWire team dressed up in bright green clothes and gave out jars of Nutella, with a Limewire.com sticker on the top, to students at NYU.  They only gave out a few hundred jars, and things grew virally from there (100 million downloads and counting).   I have one question, what would Nutella with a squeeze of lime taste like? (find out here)

• I learned the word “ubiquitous” and got my first taste of the internet at home from AOL

As the price of copying a CD went down, (and I am sure a volume discount was involved), the world saw the AOL free-trial CD as the new software distribution model.  Not to mention some great artwork.

• The perfect tag from Apple

If my sources are correct, the reason Apple is Apple is because no one was coming up with a name, and since apples were Steve Jobs favorite fruit, and, for lack of a better option – ta da.  Putting aside the tribulations with Apple Corps and anything musical from Apple Inc., how great is that name now? There’s an app for that, from Apple.   It is almost like they planned to write software and mobile applications from the very beginning.

• Jerry Seinfeld for Microsoft (and the memorable butt wiggle)

Ummmmm…. yeah, moving on….

• CNN’s exposure of the gullibility of the of the United States

I personally don’t believe this was an advertising campaign to increase software distribution, rather a hard-hitting undercover story revealing that people BELIEVE everything on the internet is true.   The comments really drive it home.  Either way, it caught my attention.  The concept is a silly low budget commercial featuring two guys who created the ZapNewsApp  being foiled by the much better CNN News App.  If you believed there really were two guys being wronged, I am sorry to be the one to break the news to you.

• Digsby Gains Awareness by Advertising on New York Garbage Cans

Digsby created a great following by building an avid community and an interesting ad campaign with eye-catching artwork on garbage cans lining New York’s busy streets.

Ultimately, every one of these companies achieved great distribution for their software, whether we thought their marketing campaigns were silly, lucky, or something else.  If you are looking for a unique distribution model for consumer software, check out W3i.  

Kristin Oberhaus, Product Manager, W3i Holdings, LLC
Kristin has over 13 years of product management experience and is a certified usability analyst. She is an avid believer in pragmatic marketing.

How are application installation rates impacted if multiple application ads are presented in the installer? This is a question that is frequently asked by application publishers when they consider the revenue- generating opportunity made possible by cross-selling additional applications during their installation process–the monetization model offered by the W3i Application Network. W3i conducted a test to attempt to answer this question.

First, some background information on W3i and the W3i Application Network. How does W3i add value? For advertisers W3i creates value by providing a new channel to purchase distribution. For publishers W3i creates value by sharing the revenue generated by the distribution of these advertisers’ applications. For users W3i creates value by helping them discover new applications from advertisers and providing revenue to fund more application development.

W3i conducted a test to understand the impact of cross-selling applications in the installer.

• Cross Section of Applications Tested – two media players, two game applications, a utility, and a social networking application.
• 175,000 applications were installed by users

The number of cross-sells (advertiser’s offers) tested included 1, 2, 3, 4, and 5.

Our findings show that a drop in the applications’ installation rate from 1 to 5 offers was less than 1.5 percentage points, equating to an average decrease of 12% with a full 5 offers. At W3i, publishers can choose the number of cross-sells that are available with their applications.

W3i observed that the acceptance rate of each cross-sell varies greatly from advertiser to advertiser and publisher to publisher. Additionally, applications have varying installation rates from application to application. This leads to the conclusion that it is not the quantity of cross-sells that impact the installation rate as much as it is the relevancy. W3i enables clients to select which applications to advertise with their apps to increase the relevancy for their users.

How many and what cross-sells are included is ultimately decided through balancing user acceptance and revenue generated. As the number of cross-sells increase, the relevancy and revenue decreases per cross-sell and so the reality is that there is limited number of cross-sells that maximize the lifetime revenue for a publisher.

Kristin Oberhaus, Product Manager, W3i Holdings, LLC
Kristin has over 13 years of product management experience and is a certified usability analyst. She is an avid believer in pragmatic marketing.

Online media player provides monetization and marketing opportunities for artists and record labels

St. Cloud, MN, June 5, 2009 – W3i, a provider of marketing solutions that increase revenue, distribution and engagement for Windows applications and plug-ins, and RightsFlow, a provider of music licensing and royalty services, announced today the creation of an integrated music marketing platform designed to help artists and labels monetize free music downloads through media support.

“W3i has developed solutions to enable the distribution of free content for over nine years,” comments Robert Weber, Vice President of Business Development at W3i. “Our proprietary technology, Install IQ, and W3i’s Application Network can help downloadable content providers increase their revenue as well as ensure speed-to-market while utilizing minimal artist resources.”

As traditional music business models continue to change, artists and labels are looking for innovative sources of revenue in the digital space. “We are very excited to offer record labels and artists access to the W3i Media Player,” stated Alex Holz, Director of Client Relations for RightsFlow. “This system helps artists and labels reach music lovers searching for free music, while still generating revenue from their recordings.”

The media-supported initiative involves reaching fans searching for free music and offering DRM-free downloads of unreleased and difficult-to-find digital tracks. The initial rollout features 100 tracks across Rock, Pop, Jazz, Hip-Hop, Latin, Alternative, and Country music genres, including artists such as Say When, Carey Ott, Michael Olatuja, and Drunken Barn Dance.

“We are pleased to work with W3i and RightsFlow on this exciting program,” said Gary Taylor, manager of Carey Ott and co-manager of The New Congress. “Finding creative ways to market and monetize music is especially important for D.I.Y. artists, and earning revenue while rewarding fans with free music is an unmatched deal.”

Install IQ was the first installation system certified in the TRUSTe Trusted Download program, and users have demonstrated high satisfaction in online surveys.

About W3i:
W3i increases revenue, distribution and engagement for Windows applications and plug-ins. W3i uses a network approach combining the demand for free and trial downloads monetized by the distribution of useful downloads when the consumer is in the download mindset. W3i’s Application Network uses Install IQ, W3i’s proprietary Windows installer, the first installer to be certified in the TRUSTe Trusted Download Program. Tested and optimized on over 250 million installs–currently 7.1 million installs monthly and growing, W3i will prove to be a valued distribution partner in growing your application business. To learn more, visit W3i’s Application Network.

About RightsFlow:
RightsFlow offers Mechanical Licensing & Royalty Solutions for labels, distributors, and online music services. We specialize in obtaining bulk mechanical, DPD, and ringtone licenses including streaming, tethered, and limited downloads rights. Our proprietary “FLOW” system allows us to license, account, and pay royalties directly to the Harry Fox Agency (HFA) and the thousands of publishers not represented by HFA. Today, RightsFlow services over 1,500 labels for mechanical and DPD licensing. Some of the many clients we service include marquee companies such as imeem, E1 Entertainment, Muzak, EMI Music, Active International, Tapulous, CD Baby, IODA, Audible Magic, YouLicense, Constellation Wines (Blackstone), X5 Music Group, Zebralution and Disc Makers, among others. For more information on RightsFlow’s services and management team, visit www.rightsflow.com.

Media Contact for W3i:
Deborah Manthei +1.320.257.7571 / deborah.manthei@W3i.com

Media Contact for RightsFlow:
Gideon Kalischer, +1-212-937-6955 / gideon.kalischer@rightsflow.com

W3i’s Download Network featuring Install IQ is a Finalist in Most Innovative Service/Business Model category.

St. Cloud, Minnesota – June 2, 2009 – W3i, LLC, provider of marketing solutions that increase revenue, distribution, and engagement for Windows applications and plug-ins, was named a Finalist today in the Most Innovative Service/Business Model category for the 2009 Comp TIA SoftwareCEO Software Innovation Awards.

The finalist designation was presented for W3i’s Download Network, a leading consumer software platform. Using a network approach, W3i’s Download Network pays partners to generate traffic, installs interactive consumer applications, and delivers active users to W3i’s clients.

The Computing Technology Industry Association (CompTIA) is the leading trade association for the world’s information technology (IT) industry. The SoftwareCEO Software Innovation Awards recognize innovative software products and new business models in eight different categories. Award winners will be announced at the CompTIA special online award ceremony on June 18, 2009.

SoftwareCEO Software Innovation Awards finalists by category are judged for:

Scope – What business problem or opportunity does the software innovation address? What is the size of the problem/opportunity?

Impact – What practical results, such as sales, users or profits, has the innovation had on a software product or on the software industry? The innovation must be new and have both a current and future impact.

Novel – How does the innovation break with traditional ideas or processes?

“W3i is honored to become a Finalist especially in the area of innovation. We know W3i’s Download Network can be a key distribution and monetization strategy for publishers and advertisers of Windows and browser applications. To date, we have installed over 250 million applications, and we are just getting started,” comments Andy Johnson, CEO of W3i. “Congratulations to the W3i team for becoming a finalist in the 2009 SoftwareCEO Software Innovation Awards.”

Entries are judged by a select panel of industry experts, including analysts, consultants, writers and trade press, and subject-matter experts. A list of the esteemed panel can be found here: http://www.softwareceo.com/leadership/awards_judging.aspx.

Details about the 2009 SoftwareCEO Software Innovation Awards and the list of Finalists in all categories are available at http://www.softwareceo.com/leadership/2009/awards_finalists.aspx.

“Software innovation is more than just ideas; it’s the ability to develop those ideas and make them work in the market,” said Mark Fogle, publisher of SoftwareCEO. “The annual SoftwareCEO Innovation Awards recognize products, ideas and business models that break with conventional software ideas and processes to introduce product offerings and business models that are key to our industry’s future growth and vitality.

About W3i:
W3i increases revenue, distribution and engagement for Windows applications and plug-ins. W3i uses a network approach combining the demand for free and trial downloads monetized by the distribution of useful downloads when the consumer is in the download mindset. W3i’s Download Network uses Install IQ, W3i’s proprietary Windows installer, the first installer to be certified in the TRUSTe Trusted Download Program. Tested and optimized on over 250 million installs–currently 7.1 million installs monthly and growing, W3i will prove to be a valued distribution partner in growing your application business. To learn more, visit W3i’s Download Network.

W3i Contact:
Deborah Manthei
Director of Marketing Communications
W3i
320-257-7571
deborah.manthei@W3i.com
mrcsg2jkyv

About SoftwareCEO.com
SoftwareCEO is a resource-packed electronic newsletter and web portal built by software executives for software executives. It is Page One for software industry information and education on topics such as software marketing, sales, business, financing, and services. For more information, visit http://www.softwareceo.com/.

About CompTIA
CompTIA is the voice of the world’s information technology (IT) industry. Its members are the companies at the forefront of innovation; and the professionals responsible for maximizing the benefits organizations receive from their investments in technology. CompTIA is dedicated to advancing industry growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy. For more information, please visit www.comptia.org.

CompTIA Contact:
Steven Ostrowski
Director, Corporate Communications
CompTIA
Phone: 630-678-8468
Email: sostrowski@comptia.org

7th annual Stevie® Awards will be presented on June 22 in New York City

St. Cloud, Minnesota – May 20, 2009 – W3i, LLC, provider of marketing solutions that increase revenue, distribution, and engagement for Windows applications and plug-ins, was named a finalist today in the New Product or Services of the Year – Computer Services category in The 2009 American Business Awards.

The finalist designation was presented for W3i’s Download Network, a leading consumer software platform.  Using a network approach, W3i’s Download Network pays partners to generate traffic, installs interactive consumer applications, and delivers active users to W3i’s clients. 

The American Business Awards is the nation’s premier business awards program. All organizations operating in the U.S.A. are eligible to submit entries to the ABAs – public and private, for-profit and non-profit, large and small. 

Stevie Award winners will be announced during the annual gala on Monday, June 22 at the Marriott Marquis Hotel in New York City.  Six hundred executives from across the U.S.A. are expected to attend.  The ceremonies will be broadcast on radio nationwide by the Business TalkRadio Network and hosted by Cheryl Casone of Fox Business Network.

More than 2,600 entries from companies of all sizes and in virtually every industry were submitted for consideration in more than 40 categories, including Most Innovative Company, Best Management Team, Best New Product or Service, Best Corporate Social Responsibility Program, Best Corporate Environmental Responsibility Program.  W3i will be competing in the New Product or Services of the Year – Computer Services category for Interactive Marketing.

“It took years for W3i’s team to fine-tune the proprietary technology for Install IQ, the installer that drives the success of W3i’s Download Network.  To date we have installed over 250 million applications.  My congratulations to the team for becoming a finalist in the 2009 ABAs,” comments Andy Johnson, CEO, W3i. 

Members of the Awards’ Board of Distinguished Judges & Advisors and their staffs will select Stevie Award winners from among finalists in final judging that will continue through June 3.   Finalists were chosen by business professionals nationwide during preliminary judging in April through early May.

“Despite very tough economic conditions, many organizations and individuals continue to perform well,” said Michael Gallagher, founder and president of The Stevie Awards.  “The results of the 2009 ABAs thus far are a testament to the resilience, creativity, and hard work of American organizations, executives, and workers.”

Details about The American Business Awards and the list of finalists in all categories are available at www.stevieawards.com/aba. 

About W3i
W3i increases revenue, distribution, and engagement for Windows applications and plug-ins. W3i uses a network approach combining the demand for free and trial downloads monetized by the distribution of useful downloads when the consumer is in the download mindset.  W3i’s Download Network uses Install IQ, W3i’s proprietary Windows installer, the first installer to be certified in the TRUSTe Trusted Download Program.  Tested and optimized on over 250 million installs–currently 7.1 million installs monthly and growing, W3i will prove to be a valued distribution partner in growing your application business. To learn more, visit W3i’s Download Network.

About The Stevie Awards
Stevie Awards are conferred in four programs: The American Business Awards, The International Business Awards, The Stevie Awards for Women in Business, and the Stevie Awards for Sales & Customer Service.  Honoring companies of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide.  Learn more about The Stevie Awards at www.stevieawards.com.

Supporting sponsors of The 2009 American Business Awards include High Performance Technologies Inc., John Hancock, Lifelock, RCN Corporation, Softpro, and Ultimate Software.  Media sponsor is the Business TalkRadio Network.  Localization partner of the 2009 Stevie Awards is Lionbridge.

Contact:
Deborah Manthei
320-257-7571
deborah.manthei@W3i.com

The Company
MicroSmarts, LLC, located in Oak Brook, IL, produces software that protects consumer privacy and enhances computer performance. 

The Challenge
MicroSmarts, developers of software that protects consumer privacy, came to W3i in 2007 with an earnings problem inhibiting them from increasing the marketing of their PC performance software and expanding their business with the development of additional software products.

The Solution
MicroSmarts joined the W3i Download Network (WDN) in 4th Quarter 2006.
WDN is a network of companies with downloads either looking for
increased distribution or increased revenue.  Microsmarts submitted the free version of SpeedItUp software, which speeds up and enhances computer systems.  After passing W3i’s extensive QC review, an executable file was created using W3i’s proprietary, Install IQ Windows installer system.  MicroSmarts used its consumer demand for the free version of its SpeedItUp software to drive traffic through the ad-supported installer system.  Revenue was generated from W3i’s network of software clients, Yahoo!, Weatherbug, the Real Network, etc., willing to pay for the distribution of their software.  SpeedItUp users downloaded value-added software in addition to their free SpeedItUp software; and MicroSmarts was paid for enabling the increased distribution of value-added software supplied by the W3i’s network of partners.

The Results
Results were immediate; in the first full month SpeedItUp earned $14,084 and monthly revenue has continued to grow with optimization improvements.  MicroSmarts earnings totaled $309,507 over one year with W3i’s Download Network.  SpeedItUp was also able to add to its revenue by offering free users the paid version of their software.  MicroSmarts now has additional cash to infuse into its business to allow its continued growth.

Find Out More
To learn more about W3i’s Download Network and how you can increase revenue and distribution for your downloads, Contact Us.

St. Cloud, Minnesota, February 13, 2009 – The freemium business model can increase your bottom line.  In 1865 when King Gillette started giving his safety razor away for free, creating demand for his high-margin, disposable blades, the freemium business model was born.  Without using the freemium business model, Gillette would not have built his empire, and it is now a commonly used business model especially in the marketing of digital content. 

The freemium business model has many names—try-before-you-buy, shareware, tiered service, trial—to name a few.  Basically, it means giving something of value away for free, supported by revenue earned from the sale of an upgrade or complimentary product.  This is a very common business model in the software industry.  Software marketers promote a free version of their software supported by the premium, paid version.  The trick is to create the right mix of features, offering enough utility to the free user to create credibility, and promoting highly attractive features that will persuade the free user to become a paid subscriber.  

To create profit, the financial model looks like this:  the lifetime value of paying customers must be greater than the cost of acquiring and supporting both free and paying customers.  Reported conversion rates to the premium version vary by product, but range from .05 and 5%; the average being 2%.

There are several reasons why you should consider a freemium business model.  Here are some of them:

1. When done right, quality trials build loyalty and trust.
2. Reduces risk by giving the user a chance to experience the value of the software.
3. Expedites a large customer base, increasing network effects and efficiencies resulting in:
   • more brand awareness
   • collective intelligence
   • faster product adoption
   • a more defensible business model, and
   • more efficient marketing, as costs are spread out over a larger base.
4. The cost of distribution and the support of digital content are never lower, allowing this model to increase in popularity.

There are also several reasons why this model has its limitations:

1. People value what they pay for and will make more effort to discover how it will benefit them.
2. It is difficult to cover the acquisition and support costs if only 2% of those installing your software are actually paying for the product.

There are other “free” models that you might consider:

1. Give a “desired” product away for free when a customer commits to a long-term subscription with you.  The mobile business uses this extensively when they give a cell phone away for free if a user signs up for a long-term contract.
2. Ad-supported free – Many magazines are free or highly discounted because of the revenue-generated from their ads.
3. Giving a product away for free while charging for a complimentary, high-margin product.  King Gillette had this down to a science.  Also consider that every time you go into a theater the cost of the ticket is subsidized by the profit the theater makes when you purchase popcorn and other high-margin snack items.

Whichever business model you choose to pursue, W3i can piggyback with your offer to layer on an additional revenue or distribution stream.  Through W3i’s Download Network you have the ability to increase distribution and revenue for your downloadable content.  By using W3i’s proprietary Windows Installation System, Install IQ, you can increase distribution for your download by being one of the value-added software offered during the installation process.  Or you can increase your revenue by using the demand for your download to be combined with other value-added software offers during the installation; and you are monetized when the user selects your software as well as the additional software.  You can then earn money on 98% of users that would otherwise get away.  Software offered through Install IQ converted by as much as 60%.  Contact W3i to learn more. 

Josh Fiedler is the Business Development Lead at W3i Holdings.  As a leader in innovative ways to increase revenue and traffic for downloads, he focuses mainly on downloadable games and utility software.

About W3i:
W3i delivers proven, integrated desktop and browser marketing solutions.  With solutions tested and optimized on over 200 million installs–currently 4.2 million installs monthly, W3i can increase revenue and traffic for downloadable software, applications and digital content or provide a receptive consumer base for customized, targeted distribution programs.  W3i’s solutions utilize Install IQ, a proprietary Windows installation system and download manager developed by W3i.  Install IQ is the first installation system to be certified in the TRUSTe Trusted Download Program.  To learn more about W3i, visit www.W3i.com. 

Press Contact:
Deborah Manthei
W3i Holdings, LLC
deborah.manthei@W3i.com
320-257-7571

In a recent article in the Wall Street Journal entitled, “The Economics of Giving It Away,” Chris Anderson, editor in chief of Wired magazine, states that “Free may be the best price, but it can’t be the only one.” 

Twitter, Pandora, Pogo, Facebook, and YouTube have all built an enormous user base using the free or freemium model.  Now they are all working on the problem of how to raise enough cash to cover their overhead.

South Park even had a show about this issue.  Have you ever heard of the Underpants Gnomes? Their business plan is – Phase 1:  Collect Underpants; Phase 2:  ???; Phase 3:  PROFIT!  In other words, collect a lot of users and hope to make a profit, but having no idea where the profit is going to come from. 

W3i can fill in the Phase 2 of the Underpants Gnomes business model.  Give your downloads away for free by joining W3i’s Download Network.  Since 2000, W3i has installed over 200 million downloads for free, supported by its Download Network, generating cash for software companies.  Several companies with free software models have partnered with W3i to increase their revenue—Digsby, Anchor Free, and startup, Bewiki.

This is how it works.  Companies join W3i’s Download Network for two reasons:  to increase revenue or to increase distribution.  Companies with demand for their downloads use W3i’s proprietary Windows Installer, Install IQ, to offer their users valued-added software from companies like Yahoo!, AWS Convergence Technologies (WeatherBug), and Winferno, who have revenue-generating business models and are looking for distribution.  The user downloads your software, as well as the value-added software that they select, creating revenue to support your acquisition or operational costs. 

So go ahead and give away your free software, but be smart about it and join W3i’s Download Network.  To learn more, contact W3i.

Rob Weber, Vice President of Business Development and Co-Founder, W3i
Rob is an Internet marketing pioneer with over nine, profitable years building proven business models that increase revenue and distribution for downloads. 

By offering your online games for free, you can increase revenue. Sound like an irony? If 2% of your users actually convert to paying for your game with a trial offer, you left money on the table. You can earn revenue from a larger portion of your traffic by re-thinking your offer. There are alternatives to the try-and-buy model for game marketing.

As the economy continues to slide, consumers are holding on to their money. They want the entertainment value of online games, but they don’t want to pay for them. Alternative business models allow you to offer your games for free, removing some of the risk of development and marketing. Don’t end up in the video game dead pool—in the past five years almost 100 game developers and publishers have gone out of business.

Alternative business models for online games include: in-game ad model, ad-supported installer model, and the alternative-payment model.

In-game advertising is becoming an acceptable business model as big brands are testing it as a way to reach elusive markets. In-game advertising spending was $295 million in 2007 and projected to grow to $650 million in 2012. IGA Worldwide research showed 82% of consumers feel the games are just as enjoyable with ads and 66% feel that the ads are not intrusive. The top in-game advertising companies are:

1. Massive Incorporated
2. Double Fusion
3. JOGO Media
4. IGA Worldwide
5. NeoEdge Networks (casual games)

Although in-game advertising is growing, it can be difficult to execute and has a long payment cycle. For it to work, the creative must fit seamlessly with the game theme and not deter from game play. Additionally, users must spend considerable time playing the game for your ad revenue to build up.

An second alternative is the ad-supported installation model. The W3i Download Network (WDN) is a new revenue stream worth considering. WDN is a network of companies with downloadable content—including downloadable games. A unique Windows installer, Install IQ (certified in the TRUSTe Trusted Download Program), is used during the installation process to offer the user a value-add of additional software—like the Yahoo! Toolbar or the WeatherBug weather widget. WDN requires minimal in-house resources, and you can start earning quickly once Install IQ is in place and new users install your games. The user only sees ads during the installation of your game so they have no interruption during game play. Additionally, since all of the revenue activity happens during the installation, the actual game play itself is not impacted.

A third option is the alternative-payment model–companies like Trialpay. With Trialpay, a user can purchase your game by completing one advertising offer. TrialPay can boost sales from your current traffic by giving your customers an alternative way to pay. This has its drawbacks as the user must commit to another offer before he/she receives your game; therefore, it is not technically “free”.

Use creativity in your marketing plan by reviewing alternative business models. You can earn significant revenue by promoting your game for “free” while earning revenue from an alternative source.

About the Author:
Josh Fiedler is the Business Development Manager at W3i, a provider of integrated desktop and browser marketing solutions. His expertise is in increasing revenue and traffic for downloadable games and utility software.

About W3i:
W3i, owner of Freeze.com, delivers proven, integrated desktop and browser marketing solutions.  With solutions tested and optimized on over 200 million installs–currently 4.2 million installs monthly, W3i can increase revenue and traffic for downloadable software, applications and digital content or provide a receptive consumer base for customized, targeted distribution programs.  W3i’s solutions utilize Install IQ, a proprietary Windows installation system and download manager developed by W3i. Install IQ is the first installation system to be certified in the TRUSTe Trusted Download Program.  To learn more about W3i, visit www.W3i.com.

Contact:
Deborah Manthei
Director of Marketing Communications
320-257-7571
deborah.manthei@W3i.com