Becoming a millionaire selling software...my theorie

Lil Margin · Post by **Lil Margin** » Sun Jan 30, 2011 2:16 pm

Most of the times when one come up with the idea to become a millionaire allot of people view it as impossible or think you are crazy but take a look at this :

if you have a product that you are going to receive a gain of $25,- then it will take you 40.000 copies to be sold to reach 1 million.
I guess if you do some good advertisement(you can do cheap advertisement), visit some other states and keep on advertising you can actually make it to 1 million...

What do you guys think?

kazymjir · Post by **kazymjir** » Sun Jan 30, 2011 2:53 pm

Business works mostly in this way.
But it requires lot of money at start, if you want buy 40.000 of product that you will be able to sell with $25 profit.
From my experience, the best is buying products not per unit, but per kilogram.
You can get really cheap prices on wholesale.
For example, green/black tea. You are creating Internet shop, or/also selling product through eBay (but it's more expensive due to eBay fees).

Also, you need have registered firm, to keep everything legal.
You don't want to pay large fine for not paying taxes.
In Poland, creating company isn't hard (you can ever register through Internet, only later need go to bureau to sign papers).
But also, you need to pay every month additionally payments (according to Polish law, in other countries this may be different) for health insurance (it's about ~$200 in Poland).

PS: if you want to create Internet shop, but not have skills in webdev, you can PM me

special discount for Irrlicht user

shadowslair · Post by **shadowslair** » Sun Jan 30, 2011 2:54 pm

In reality one usually gets less than 10% of the sale price in best case. Course it depends on many factors. But, to earn 25$ you need a sale price of at least 250$. Plus, for 40 k copies your product needs to be really useful or addicting if it`s a game. Everything goes through a very complicated process, which costs a lot. To create sth good and earn 1 million $ you usually need to invest say 100-200k $. If you decide you can develop, support, advertise etc. your product alone it still will take a lot of time until you get your million, which time you`ll produce your expenses for all the usual stuff. It`s a closed cycle. Sure, if you`re some kind of a genious and/or come with some unique idea and have a lot of luck you may do it. Is it possible? Yes. It it likely? No.

People, even the big companies usually code/develop a product to make a living, not to get rich. As everything you save money by dispensing with things.

Ok, you got your million. And then what?

Lil Margin · Post by **Lil Margin** » Sun Jan 30, 2011 3:39 pm

when you have the million you cant make a smal apartment and rent it to have income each month for example and keep making more products to expand the business.

In reality one usually gets less than 10% of the sale price in best case

Well i think it depends, because sometimes they buy your products of you and then they put a $5,- extra on the price so they will sell it for 30,- and they get a gain of 5,-.

PS: if you want to create Internet shop, but not have skills in webdev, you can PM me special discount for Irrlicht user

Ok, ill PM you when my website is finished, and with the internetshop...can you do things like let people buy a CD from the website?and get a company like FedEx post a real copy of the CD at the buyers house?

kazymjir · Post by **kazymjir** » Sun Jan 30, 2011 8:56 pm

Buying through website yes, the best payment method is by using services like DotPay, where customer can pay for product in 5 minutes after purchase.

About FedEx, the best method is to buy lot of CDs and record them in home, and send from home.
It's cheapest method, most of Internet shops doing this in this way.

Example:
1. Customer buying product through your website.
2. He is paying through DotPay system in next 5 minutes.
3. After another 5 minutes, after acceptance payment by DotPay you are getting email with information about payment, customer and bought products.
4. You are sending product to customer.

It works in this way.

Lil Margin · Post by **Lil Margin** » Sun Jan 30, 2011 9:22 pm

Is there any services that does these 2 staps for you :
3. After another 5 minutes, after acceptance payment by DotPay you are getting email with information about payment, customer and bought products.
4. You are sending product to customer.

because if i sell a software i cant see myself checking email every so and then to send the product to the buyer.

Lonesome Ducky · Post by **Lonesome Ducky** » Sun Jan 30, 2011 9:59 pm

I don't mean to rain on your parade, but even the most successful indie game developers (save a very small few) don't make that kind of money at all. You gain very little, and most of what you get as indie is going to pay for your food

Very popular indie games like Mount & Blade, Gratuitous Space Battles, Braid, etc. probably haven't made anywhere near that much raw profit, and these are far and away exceptional examples of indie games.

kazymjir · Post by **kazymjir** » Sun Jan 30, 2011 10:35 pm

3. After another 5 minutes, after acceptance payment by DotPay you are getting email with information about payment, customer and bought products.

This will by done by software and DotPay (or other service you choose) API

4. You are sending product to customer.

You can hire somebody to do that

because if i sell a software i cant see myself checking email every so and then to send the product to the buyer.

You can check your mail everyday at one hour, lets say, 10:00am.
There is no need to check mail every 10 minutes.

Lil Margin · Post by **Lil Margin** » Mon Jan 31, 2011 2:40 am

I don't mean to rain on your parade, but even the most successful indie game developers (save a very small few) don't make that kind of money at all.

I think the real question is if they wanted to make that kind of money

Adler1337 · Post by **Adler1337** » Mon Jan 31, 2011 3:00 am

I think the real question is if they wanted to make that kind of money

EVERYONE wants to make that kind of money. Unless you have a good product and you are a savy businessman there is little to no chance you will make anywere near there. The problem with most people is they shoot for a million and get disappointed when they only make $100. You should aim for any sort of profit and try to grow off that.

Lil Margin · Post by **Lil Margin** » Mon Jan 31, 2011 3:16 am

I agree with you that everyone WANTS to make that kind of money but how much people actually put the work into it...all the stories i heard where people actually puted work into it they made around 500.000 and up

kazymjir · Post by **kazymjir** » Mon Jan 31, 2011 3:31 am

To make big money, you need be very, very patient.
It's hard to earn $1 000 000 fast.
You need to be patient, at first incomes will be low, but with time it will start slowly grow.

And remember: to make money, you need money.
At first you must invest some money in your business. At first there will be no profits. After some time, all money you invested will return to you and you will start gaining first real incomes.
You need to be patient on this stage. Many beginners wants make lot of money very fast, but instead they bankrupt very fast.

At second stage you are collecting money to expand your business.
You are investing and stage one begins again.
After some time invested money will return and you will again start having incomes that let you to expand your business.

At first incomes may be very low, for example $50.
After some time it may grow to $100, in next month to $200, etc.
With enough patience you will start making real money.

Also, one very important rule.
Spent money only on thing you really need (food, bills).
If you earned $100, don't spent buying beer. Invest it instead.
Saving money is first and most important rule of business.

I can show you something, I started using this rule (saving money) from last month.
Now I have on my bank account about $500, starting from zero.
Normally, even when I have $20 I am thinking where I can spent this money, but now I am keeping cash in bank.
With using this simple rule, my money growing and growing

Lonesome Ducky · Post by **Lonesome Ducky** » Mon Jan 31, 2011 5:23 am

Considering that Mount and Blade has been worked on for the past 3-4 years, and Gratuitous Space Battles is being constantly updated, I'd say they are working for the money but make nowhere near that much. I'd like to hear the stories about where people put work into it and made 500,000+ (And yes, I'm well aware of Minecraft. But that's the needle in the haystack)

ChaiRuiPeng · Post by **ChaiRuiPeng** » Mon Jan 31, 2011 5:43 am

minecraft is in opinion the rare story, rare diamond, that everyone slaps theirs forehead "ohpe! why did I not think of that?"

i think it takes luck to accomplishe achievement done by minecraft. howw else would you explain it. it is not like there are not talen programmers and devs out in the world.

xDan · Post by **xDan** » Mon Jan 31, 2011 10:02 am

I think the more usual story is you work extremely hard and then you sell 2 copies =)

I do think hard work will win out in the end though, with repeated failures you will learn and improve. So that's probably what separates the successes from the failures, those willing to try again after failing (repeatedly!). But still becoming a millionaire is probably rare. Why not settle for $100K?

Or just a reasonable income doing something you enjoy.