Wednesday, 19 August 2009

The best market is one with lots of money

There are always people who feel that developing plug-ins is not a profitable market. Now while developing a plug-in may not make you as rich as Bill Gates, if there is a sizable market, you will make money.

So if you are looking for whether your idea makes sense, here is a simple relation to figure it out:

UnitPrice * NumberOfQualifiedCustomers * ConversionRate >= SomeSpecificFinancialGoal

If the statement is true, you will make money. If it is not, you will fail.

I'm pretty sure that I grossly over estimated NumberOfQualifiedCustomers when creating Worklog Assistant. How did I over calculate? Simply, the number of total JIRA users who also use JIRA as a timesheet system is quite small (yeah, duh right?) I would not have known this if I did not reach market quickly.

However, I used very pessimistic values for ConversionRate so maybe that balanced it out because I still reached my financial goals.

What does this mean for me? It means V2 is going to kick some serious ass. Oh how I wish I could have people to work on this with me, wink wink :-)