The State of the Xojo 3rd Party Developer Market [u]

BKeeney Software offers a variety of Xojo developer tools for sale. BKeeney Shorts is a reporting tool unlike anything else in the Xojo kingdom and allows you complete control over your reports. That is its strength and also its weakness since you have to fully code your report. We also offer a Calendar class for use in desktop applications, a cross platform Spell Checker plugin, and ARGen that creates the classes that ActiveRecord uses to make database coding easier and quicker in Xojo.

Over the years we were approached by developers that were leaving the Xojo market and wanted a home for their product. When True North Software decided to exit the Xojo market we purchased the rights to Formatted Text Control, RB Code Reports and a number of other Xojo related tools. When Pandaware left we picked up Simple Help Editor and Styled HTML Field. Many people were asking for PDF classes and had fond memories of Fireye Software’s PDF classes so we tracked down Asher and acquired those too.

We purchased these products from their respective owners either because we already owned the products or had a use for them. In some cases we simply updated the source code and in some cases we started a complete rewrite to suit our needs. This means that in addition to the original thousands of man-hours the original developers used to create them we’ve invested significant time and effort ourselves to work on them.

BKeeney Software can’t exist on the sales of these developer products. Developer product sales are lucky if they top 20% of our annual income. Most years it’s less than that. Our second highest income earner is our Xojo Training material but, by far, our best income source is our consulting services. With multiple Xojo developers that makes sense. Not only can we throw all of our developers on a project we can (and usually do) all work on separate projects. When one of us is idle (which thankfully isn’t very often) we find time to work on our applications and developer products (and me on training material).

I was on the receiving end of a grievance on the forums this week where I was accused of not delivering updates that I promised on one of the products. If I did nothing but work on our products I’d be out of business in short order and that product would just go away and who knows if anyone would pick them up.

This got me thinking. Am I unique in this position? So I queried some other Xojo developers to find out what the state of the Xojo 3rd party market is like and if they would share their thoughts. I received more information back than I expected.

Almost all of the developers I contacted said that product sales were a minor portion of their income with most stating it was less than 20% of their income. Jérémie Leroy has a full-time job and the Xojo business is just a happy sideline. Sam Rowlands said there was no way the sales of his developer products comes close to paying for itself. And,one of the more well known figures in the Xojo community, Christian Schmitz said, “Even with the scale I have with MBS myself. Consulting keeps the company running.”

From these statements, it’s pretty obvious that the 3rd party market, while not exactly stagnant, isn’t thriving either. Everyone I talked to has other sources of income besides their developer tool/utility sales. Part of this is probably because the Xojo market is small. Another reason might be the hobbyists that Xojo attracts and they simply don’t have the means to purchase tools. Another possibility is that Xojo has ‘good enough’ tools built-in and newcomers don’t need the more advanced commercial, add-ons.

One of the interesting comments I received from several developers was that it was those that purchased the cheapest version of their products (some offer encrypted and non-encrypted versions) created the most work for them. I’ve seen this myself with our encrypted source code that it seems to generate more support tickets than the full-source versions. Based on this feedback I am seriously considering removing the encrypted versions from our store and simply selling the full-source versions. It’s interesting that our one product that doesn’t have encryption (Formatted Text Control) doesn’t generate that much support help despite it being one of the largest and most complicated products we sell.

All of the developers I contacted felt that the future of Xojo is bright and holds promise. iOS development in Xojo might become as big as desktop and web which means new customers for their products. The new framework causes concern for many in the Xojo community but the developers I talked to were ecstatic that Xojo was listening to our concerns and making incremental changes to the new framework based on that feedback.

The 3rd party Xojo development tool market is tough business to make a living at. The fact that half our products came from developers leaving the community says something. That some of the most well known and respected voices in the community can’t make a living selling Xojo developer tools and have other sources of income is also telling.

So what can Xojo do to help us out? Growing the user base is the biggest thing they can do and it seems that having the iOS version is a step in growing the platform. One area of concern, though, is that many Windows users are unhappy with Xojo right now. They feel, rightly or wrongly is besides the point, that the focus has been so Apple and iOS oriented the past couple of years that they feel unwelcome. Some focus on making the Windows experience better would be reassuring to them.

I also think that Xojo could do more to promote the 3rd party products. Perhaps the Xojo Developer Evangelist could pick a product to review each month. Xojo Developer Magazine does reviews like this but it doesn’t receive the eyeballs that the official Xojo site gets. Personally I’d offer a discount for the people that purchase via the review. The market isn’t THAT big and it would be a good way to show off some products and generate sales for developers that are starving for income. More income means more of time for product development and everyone wins when that happens.

I feel the future is good. More Xojo users means more product sales (hopefully). This, in turn, means we can spend more time on those products and pump out updates on a regular basis. Until then, us 3rd party Xojo developers will continue with our labors of love and put updates out when we can.

What do you think of the 3rd party market? What could Xojo do to improve it?

[Update:  ]

After looking at our 2014 numbers our total developer products and training sales was LESS THAN 10% of our total income.  In 2013 the amount was more but amounted to less than 5% of our annual income (consulting was VERY good that year).  In other words, if we relied on our developer products and training to make a living we would quickly go out of business.

Seriously, why do I even bother with developer sales?  Just using them and updating them for ourselves would be cheaper in the long run.

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