Local markets versus online sales

1
Local markets versus online sales
2
Agenda

• 1. Online Sales Distribution
• 2. Local versus International
• 3. International Classic Distribution
• 4. Conclusion

3
The Company

• GECAD Group was founded in 1992
• 12 years experience in shareware industry
• More than 120 employees
• Our main brand until 2003 was RAV AntiVirus
• Avangate - brand of GECAD ePayment
• eCommerce solution specifically tailored for
  software sales via the Internet

4
Introduction

• There are two ways of selling your software
• Online (web) distribution (for SMB Entities)
• Classical distribution (for Corporate,
  Established Entities)

5
ONLINE DISTRIBUTION

• First Steps, the Products
• The product at the beginning should be in English
• First Steps, the Website
• The website have to be presented in at least two
  languages English and local language (if this is
  the case)

6
ONLINE DISTRIBUTION

• AVANGATE Solution Basic Features
• free support during implementation
• multiple languages interface for the ordering
  pages
• real time delivery of software products (in fact
  serial numbers, codes, licenses, and so on)
• capabilities to deliver media support for the
  software (such as CDs and DVDs) and also option
  to personalize the way they look
• complete personalization of payment stages that
  makes the customer comfortable (the payment
  interface looks exactly like the software
  company's website)
• complex antifraud filters for all transactions

7
ONLINE DISTRIBUTION

• AVANGATE Solution Basic Features
• 24/7 hotline support for any payment related
  issue
• recover lost transaction tools
• complete reports regarding transactions,
  customers and many other issues
• marketing tools for the software products such as
  cross-selling, promotion, discounts, etc.
• access to AVANGATE Affiliates system
• very soon access to AVANGATE Shop (a marketplace)
  where all the products from our partners can be
  promoted and sold within the system

8
ONLINE DISTRIBUTION

• SEO Audit
• PPC Management
• Software Submission
• Usability Evaluation
• User Testing
• User centered Design
• What does this mean?

9
ONLINE DISTRIBUTION

• The ten largest technology markets are
• study published by WITSA (World Information and
  Management Technology Alliance)

10
INTL CLASSIC DISTRIBUTION

• The key is to succeed in the first market
• The budget should be planned for each market
• Decide how many markets you should approach in
  the first wave

11
INTL CLASSIC DISTRIBUTION

• You should avoid specific international markets
• High piracy rates markets are China, Thailand,
  Indonesia, Vietnam etc.
• Region groupings Benelux, Nordic Countries,
  German and French speaking countries, ASEAN and
  AustraliaNew Zealand

12
INTL CLASSIC DISTRIBUTION

• Setup
• Hiring sales people
• Dividing specific territories/areas
• Two ways to identify customers globally or to go
  for distributors in each territory
• Testing Netherlands and Australia
• Sales USA, UK, Italy and Spain

13
Managing the channels

• You can provide the channel with
• - Lead generation programs
• - Field salespeople for co-calls with the
  reseller
• - Trade show booths
• - On-site technical support
• - Aggressive marketing programs

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INTL CLASSIC DISTRIBUTION

• Farming Consolidation
• Reseller is a company which resells your software
  product
• Distributors sell your software as main business

15
INTL CLASSIC DISTRIBUTION

• How it Works
• The distributor collects all the orders from
  territory (from its resellers)
• Email to a sales person, or by completing a form
  in the website
• Distributors have to pay in advance (or at term)
  for the ordered licenses
• The distributor receives the keys and gives them
  to the resellers and they finally arrive to the
  end user

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INTL CLASSIC DISTRIBUTION

• But who is the end user?
• take a clear evidence of the end users
• customers database the most precious information
• offer support only to legitimate users

17
Conclusion

• Use a complete solution for management of
  distribution channels
• You should offer it to your distributors and
  resellers so that they can start working with an
  integrated system
• They must have easy access to all information and
  to interact with your company (invoices, support,
  order placement, payment)

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Conclusion

• You and your distributor should be able to
• - define different models of licensing the
  products (for example per user, per domain, per
  traffic, per site, per storage, per instances,
  etc.)
• - allow different resellers log in the system and
  to order licenses, buy them online using credit
  card, tracking the software until it arrives to
  the users and also generating automatic alerts
  for updates and other scheduled events
• - check if a so called "valid" license was issued
  by your system (then is valid) or from a pirate
  key generator (so its invalid and illegal)

19
Conclusion

• Classical distribution must not exclude online
  sales
• The product must have some popularity online
  before using classical channels
• To be succesful when doing classical distribution
  you have to make your partners happy

20
Conclusion

• What you need
• An application for management of distribution
  channels
• Integrated with Avangate

21
Thank you

• Thank You!

22
Questions?
?
?
?
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Contact details

• AVANGATE BV
• Van Heuven Goedhartlaan 937 1181 LD Amstelveen
  Amsterdam Metropolitan Area The Netherlands
• Office 31 20 890 8080 Fax [phone]
• Contact person Andreea Dinu
• E-mail andreea.dinu_at_avangate.com
• Web www.avangate.com