Prelude:
{todays article is only indirectly related to SEO. BUT, the objective of the blog from day one was to do whatever I could that I thought would do the most good for the most people. Since going to India, I've spoken with a lot of people who are in the custom applications development business. They all seem to have one common problem. To a person they all say their biggest challenge is to get the prospective client to be open with them and give them the details they need to actually get them a solid quote. I'm hoping this post gives both the buyer and the seller a little insight into how to overcome a big part of the trust issue.}
Soooo- you got a GREAT idea
for new online business that can make you rich if you just had one little
missing piece. The problem is how can you get someone to help you get that
piece without having to give them your idea and risk them stealing it from you?
We’ve all had great ideas. Imagine how much money has never
been generated because we never got our idea off the ground. The difference between the great ideas and
the businesses that make their founders rich and famous is that someone turned
that great idea into a reality and put the missing pieces together.
With internet technology exploding in your face like a cheap
firecracker with a short fuse it’s easier and cheaper to get an idea off the
ground than ever before. One of the things I love most about the internet is
the fact that opportunity is running faster than a fat guy for a free buffet.
IF YOU HAVE A NEW WAY OF DOING THINGS ONLINE – YOU ARE GOING
TO NEED NEW SOFTWARE
I’m getting more and more requests for quotes on custom
software applications, (the concept of the more you give the more you get at
work), and while I’m glad to have the shot, I’m realizing just how much I’ve
got to learn about the software development business. One of the things I’m learning is that
ignorance can piss people off.
For several years now I’ve been on the buying end of custom
application development. One of the main reasons I set up shop in India was to
cut out the middlemen and have more control over the people doing the
developing but I’m starting to feel like the pot smoker who decides to start
dealing to support his habit. The more I smoke the more I gotta sell and the
more I sell the more I can smoke.

That’s kind of cool
I guess but I wish it paid better.
I’m not complaining about that mind you. For the first time in my 11 year attempt at making my mom believe what I do constitutes a “real” job, I’m actually building myself quite a little library of really cool online promotional tools and databases. I’ve struggled for so long doing so much with so little that it’s really nice to be able to finally have a “menu” of hotrod goodies that actually kick ass at the click of a button.
My problem is coming from the fact that I made the decision
to get into the sales end of application development because I thought I could
use my past experience to help others get through the inherent problems of
outsourcing software development faster, easier and at a lower cost. As it
turns out it ain’t as easy as it looks!
There are several issues that I have been able to find
pretty slick ways of overcoming but one issue keeps coming up and the more
people I can educate about it, the better it will be for buyers and sellers .
IF YOU WANT ME TO BUILD YOU A TOOL FOR A NEW IDEA – YOU HAVE
TO TELL ME WHAT THE IDEA IS
This past week I pissed someone else off and lost another
job because I could not read minds. I won’t use any names or specifics because
my intent is not to make anyone look bad. Like I said, I understand because
I’ve been there too. My intent is just to illustrate how to save yourself some
time and actually get a step closer to getting that great idea off the ground. I'll put the prospect's comments in bold and my replies in red.
New Quote Request:
I need a popunder ad serving software, so I can make a site
similar to popupxxxxxx.com. It would need to track how
many popunders actually loaded (i.e. got
past all popup blockers), ability to target by country, ability to automatically pay publishers via paypal, and it would be
nice if it could get past the most popular ad blockers like firefox (plus a few
other features I'm forgetting right now). If it would be easier, you could base
the program off of Open Ads ( openads.org).
Notice the words “AUTOMATICALLY PAY PUBLISHERS” and “COULD
BASE THE PROGRAM OFF OF OPEN ADS”. So
right off the bat I know this person is new to software application
development. Anytime a program “AUTOMATICALLY PAYS” someone, it becomes much
more than adserving software. And any
time you “BASE THE PROGRAM” off of anything else, (even if the other program is
some kind of free offering), you just added the time it takes to research and reverse
engineer the other program to the cost of the project.
That’s completely all right with me as I know MOST people
don’t understand the ins and outs of software development. That’s why they come
to someone like me asking the questions. The delivering ads and tracking how
many actually loaded is not too big a deal, even the ability to target by
country isn’t much of a stretch. BUT
when we get to the automatic pay and the get past ad blocker stuff, now I have
some questions. So I ask him:
Hello xxxxx. We have
done a lot of work in ad serving/tracking stuff.
In order to give you a quote, I need a little more detail.
do you have a design document?
do you have a preference in language. java, .net, php ?
since this is going to need to be a revenue sharing program will all
commissions be the same, like 50% across the board or will there need to
be ways to set up and pay "groups" like premium publishers make more
and affiliates with lower traffic level makes less etc?
I'm not familiar with popupxxxxx.com
so we'll have to do a little research
If you don't have a design doc, don't worry about it. Just tell me a
little more about the business model and we can build from that., If we
do it that way, we will provide you with the design doc and the SRS,
(software requirement specification).
do you have a non-disclosure agreement., If not, we have a standard one
that you can use but you really should have an NDA for your own
protection.
It may be that the program you need is not all that complicated and we
can use some, (if not all), open source apps and off-the shelf stuff but
I always take the approach that we are not just building an app, but we
are building your business and the first step is to make sure that we
see YOUR vision.
Massa
You can see that I’m trying my best to educate him without
trying to intimidate. I’m also trying to let him know that if he doesn’t
know what a design document is to just explain
a little about the business model and I’ll take it from there. Also, notice
that I tell him straight out to get an NDA so that he can protect himself.
After all that, keeping in mind we have both spent two days
with this so far and this is what I get back.
Hi Massa,
I don't have a design document (not sure what you mean by
"document"), but I can have a design made. I kind of wanted a stand
alone program that I could include in multiple sites with different themes.
I tend to prefer php just because I know it and could better correct errors and
whatnot, but if you think another language would be better, that's fine too.
The commission would be a flat rate. Maybe $1.5 CPM for US/UK/Canada traffic,
$0.5 for all others. No need for groups right now.
Notice how he says FLAT RATE commission and no need for groups
but then shows me two different payouts making at least 2 groups? Now I know he
is thinking this program is no big deal and should only cost $1000 or less,
(probably a LOT less). But I also know
he doesn’t realize what kind of programming juice he needs to really pull off
the base it off of thing and the automatically pay thing, let alone the different
payout amounts . So, if he doesn’t want
to discuss the details of his idea with me and let me help him find ways to
accomplish his objectives, then my dilemma is, do I tell him what he wants to
hear or tell him the truth and hope he realizes that what I’m giving him is a
very inexpensive way to have the bare minimum to actually run a business like I THINK he’s wanting?
Well, I have no choice but to tell the truth based on what I
think. My response to him. 3rd
exchange.
I've had several conversations with Chirag. He
is the one responsible for getting
the quotes, the time estimations and managing the coders.
based on the details you have provided, we feel that what you are
looking for is something similar to a project we are building for
another client now. That project has a LOT more features than you described
such as allowing
advertisers to upload video ads, blog posts, podcasts, etc as well as
basic banners and graphic ads. It also has functions that allow the
administrator to allow payments by the month or by the click or by the
impression. It also has functions to allow payouts to be adjusted so
that one ad could pay out a different percentage than another. It could
allow for premium publishers compared to basic publishers for example. it also
has
spidering features to make sure the ads are displaying properly and there are no
major content changes to the hosting site etc. It has a desktop communication
and notification function and it is much more involved than what you had
described but we
feel the ad delivery/tracking and payout functionalities are very
similar. Of course we can’t use this software BUT we do have the knowledge of
how it all works and have staff that is very familiar with the entire process. this could save you a lot of time.
Anyway, to provide you with a stable, scalable application to perform
the functions you mentioned, you are looking at about 1300 man hours
@$10 per hour for a total of $13,000 US. that could be one developer
working for 6 months or 6 developers working for one month.
If you are interested in proceeding let me know and I will call you on
the phone and give you a brief demo of the software. You should probably
at least take a look at it so you if nothing else you could get some ideas.
Massa
I knew two things. #1, $13,000 for a program like this was
very cheap and #2. He would freak out at the price, feel a little intimidated
and I would lose the deal . His response----
Thanks for your proposal, but
I'm not really looking for anything that extensive. I would have been happy
with just some adjustments to Open Ads that would track actual ad views, get
around pop-up blockers, a publisher sign-up, and PayPal payments. I think your
solution would hands down be better if I were trying to build a full blown ad
network, however there is a reason that I only need the bare minimums (I can't
say why though without giving away my business plan). Thank you for your time
though.
Had this person just went and read a little bit about a Non
Disclosure Agreement at
http://en.wikipedia.org/wiki/Non-disclosure_agreement
Or
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1074415494
(for our friends across the pond)
we wouldn't have had to waste each others time. We would have both known what he actually needed and what kind of budget we would be working with. He could have even gotten a copy of a basic NDA from S.C.O.R.E. http://www.score.org/ (Service Corps Of
Retired Executives), who generously offers one for free that is legal and binding. Anyone can download it free at http://www.score.org/downloads/NonDisclosureAgreement.pdf
Look kids, if you have an on line business, or hope to, from time
to time you are going to need software that you just can’t find off the shelf or it just isn’t
cost-effective to try to modify off the shelf stuff yourself. When you need custom scripts, regardless of
your skill level or experience, learn a little about an NDA. Learn at least enough
that you can comfortably discuss the “idea” with the developers so they can understand
what you need that software to do and let them help you.
There is no substitute for prudence and of course you should
CYA, (cover your ass), but the vast majority of developers have no desire to
steal your idea. Their business is developing and as long as you show them that
you have taken steps to legally protect yourself, you should be able to at least
give the developers a good idea of the basic business model and the unique
problems that you need solved. Being able to openly discuss what you need will
save you and them time and money.
If you're done with supper help your sister with them dishes and go get warshed up for bed
Peace Y'all
the Guru