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Ask HN: Making a living selling software components, not SaaS?

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Ask HN: Making a living selling software components, not SaaS?

#1
There have been countless discussions about SaaS with tons of examples and success stories. It seems like a good way to structure new software businesses.

However, I wonder if there's anyone here who makes decent money selling software components or code "the old way".

Please share your stories.

(I'm also interested in hearing the buyer's side, so please mention useful code/software that you had bought).

Re: Ask HN: Making a living selling software components, not SaaS?

#2
I do not make money from software components, but when I browse http://codecanyon.net, I find a few developers who seem to be doing relatively well. They basically sell more or less sophisticated scripts.

You could regard themes for WordPress as software components. Or theme frameworks such as Genesis (studiopress.com).

The really successful ones (such as Genesis) seem to bundle software components with something like subscriptions to future updates, a paid membership site, additional content like ebooks, live seminars, training, support etc. to get additional income streams and be able to upsell or cross-sell customers.

Game engines or mobile development frameworks (KendoUI, Sencha) that can be licensed also fall under selling software components. Again, the successful ones seem to offer additional resources or they sell their components in a one-year-license model, where customers have to renew the license every year. That would be more or less the same as SaaS in terms of recurring revenue and keeping customers in the loop.

Re: Ask HN: Making a living selling software components, not SaaS?

#3
I'm a developer, I remember one time I needed to have a particular piece of functionality in an app. I could have built it, but I found that someone was selling what I wanted for $3.00 on the internet, it was a no-brainer. I paid with something like gumroad, downloaded and plugged it in within a matter of minutes, vs the few hours I would have spent writing/debugging.

Re: Ask HN: Making a living selling software components, not SaaS?

#5

I'm a developer, I remember one time I needed to have a particular piece of functionality in an app. I could have built it, but I found that someone was selling what I wanted for $3.00 on the internet, it was a no-brainer. I paid with something like gumroad, downloaded and plugged it in within a matter of minutes, vs the few hours I would have spent writing/debugging.

That's interesting. As you say, it's a no-brainer. I wonder if some kind of micropayment market in functions could be pulled off... The kind of thing Ted Nelson or Jaron Lanier talk about, only for small pieces of reusable code rather than small pieces of reusable text.

Re: Ask HN: Making a living selling software components, not SaaS?

#6

I'm a developer, I remember one time I needed to have a particular piece of functionality in an app. I could have built it, but I found that someone was selling what I wanted for $3.00 on the internet, it was a no-brainer. I paid with something like gumroad, downloaded and plugged it in within a matter of minutes, vs the few hours I would have spent writing/debugging.

That's interesting. As you say, it's a no-brainer. I wonder if some kind of micropayment market in functions could be pulled off... The kind of thing Ted Nelson or Jaron Lanier talk about, only for small pieces of reusable code rather than small pieces of reusable text.

Stackoverflow is close, but the only currency is karma. But you can offer it as bounty to answer your question.

Throwing money into that dynamic is opening all kinds of worm cans.

Re: Ask HN: Making a living selling software components, not SaaS?

#7
I'm one of the co-founders at Binpress (http://www.binpress.com), which is marketplace for commercial open-source projects. Unlike Codecanyon, which someone else mentioned in this thread, our focus is on professional development and components that are more than simple scripts. Cocoacontrols (https://www.cocoacontrols.com/) is another good example, with some of their commercial components doing very well.

We have several developers making SV comparable salaries from publishing on our platform (in the 100k$ range annually). I believe this can be a huge market - if you look at companies selling licenses to code or SDK binaries, there's quite a few who built very profitable businesses around it.

Very well known examples of companies selling code licenses include MySQL and Magento (through their enterprise versions), though they provide complete solutions and not components. Gravity Forms (http://www.gravityforms.com/) a wordpress plug-in, is another good example - it generated millions in revenue if you trust their installation counter.

Re: Ask HN: Making a living selling software components, not SaaS?

#8
One angle is selling plugins to popular creative software. Not quite "the old way", since they are standardized components and sold somewhat more like apps are, but it's a way of selling software components. Photoshop plugins, VST plugins for audio applications, and plugins for the Unity game engine are three fairly active markets I know of.

Another strategy, though from what I can tell with declining popularity, is to write a GPL-licensed open-source library, and then sell proprietary licenses to companies who prefer those terms. Two random examples: http://www.juce.com/documentation/commercial-licensing http://www.cgal.org/license.html

Re: Ask HN: Making a living selling software components, not SaaS?

#9

I'm a developer, I remember one time I needed to have a particular piece of functionality in an app. I could have built it, but I found that someone was selling what I wanted for $3.00 on the internet, it was a no-brainer. I paid with something like gumroad, downloaded and plugged it in within a matter of minutes, vs the few hours I would have spent writing/debugging.

Odd price, $3. He could have doubled his price to $6, doubled his income, and lost no sales. Anyone who would consider buying a component online would surely not blink at the difference if it saves them a half-a-day of effort.
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