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how to make money in software industry?

how to make money in software industry knowing that the thrill is gone?

What's it that people are trying to solve and hasn't been solved yet?

soon would be bright mind
Friday, August 16, 2002

>What's it that people are trying to solve and hasn't been solved yet?

The anser is simple: "how to make money in software industry?" :-)

Friday, August 16, 2002


Friday, August 16, 2002

I think there's all kinds of money to be made, all over the place.

Don't get caught up in being totally unique, it's rarely important. Competitors are an advantage-- it means you start with lots of potential customers, and that there is money to be made. You don't have to educate people as much about why they should pay a lot of money for your xBeanSticker57. It's also very nice to have a reference to judge your product by, there's some weird pleasure that comes when you look at someone else's successful product, and can say "that sucks, mine is WAY better."

To get started, make a list of all the different ways to make money doing what you love, then figure out which ones fit your situation and strengths best.

Matt S
Friday, August 16, 2002

support/maintain existing software for less! i.e. figure out how much oracles CRM teams charge, steal a few of their old developers and charge 80% of what they do!

Daniel Shchyokin
Friday, August 16, 2002

80% being still a ptetty tidy sum! (figure 160-200 per hour)

Daniel Shchyokin
Friday, August 16, 2002

Well, there's no hope if the thrill is gone. Try to get it back. You need tons and tons of it to start a company.

Make something fun, learn a 3D API or genetic algorithms. Or a 3D animated genetic algorithm. So you can shoot the blobs, and they mutate to run away from your gun. Yeah, do that, get the thrill back. You want plenty of thrill, even if you don't start a company.

Friday, August 16, 2002

Caveat : I am a young programmer, working for someone else. I aspire to make it big in Software development but as of yet have not gotten too far. 

So here are my observations about making money in the software industry given you have been warned it's based on observation not experience.


1 - product V project.

There are far more people out there making good money with projects than products. 

Over 50% of software project customers are in some way
significantly dissatisified with the result of the project.

2 - "Don't get caught up in being totally unique" - Matt S.

This is the biggest lesson I have had so far.  Each of the three people I know who have made significant money out of their own software business efforts did so by creating a better version of somthing already out there.

Their attitudes was to steal a small market share in a huge markey by creating something better, not new.

I think this is Joel's philosophy with City Desk, Content Management is not a new idea.

3 - People will pay more than you think.

I for one was amazed at the large amounts of money business and government are prepared to pay for what looks to a techie to be an amazingly simple piece of software or software modification.

I am not sure whether this is because Software companies reguarly take huge profits from customers or because there are genuine expenses to running a business that make it a neccessity to charge ammounts that seem excessive to a single programmer without those expenses.

The idea of making a making billions by making the next big internet whizbang technology begins to pale when you realise how much money people are charging for simple software that you are capable of making right now.

4 - Quality Matters

Everyone I know who has made money in software set their own quality standards, they didn't fall or rise acording to those around them, they had a natural tendancy to stay with something untill it worked really well.

5 - "Not making money with a software business is a business not a software problem!" - Sosay

Just as people with hammers think all problems are nails, technical people love to sit around pondering technology.

The technical people who have succeeded in the technology business seem to have a willingness to learn about business not just superior way with technology.

The sort of thing I am talking about is :

- How does web advertising work ?
- What is the CPM ?
- How do you set up online credit card processing ?
- How do you get a merchant bank account ?
- Where are software 'invitations to tender' for your area listed ?
- What does a tender document for an IT project look like ? 
- What approvals are required before you can begin applying for government IT work.
- How do you write a press release ?
- What obligations will you have to support your product ?

In conclusion I think the reason many young inspired programmers don't make money with their software is that they view commerical software too much like writing a book and not enough like running a resteraunt. 


Tuesday, August 20, 2002

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