The number of available premium WordPress plugins has soared in recent years with the rise in popularity of WordPress CMS.
Behind every great product is a well-executed strategy. From the design of the product to marketing and customer retention, a plugin strategy needs to look at the bigger picture.
In this post we will look at the process of developing a successful plugin strategy.
The most successful products solve a common industry problem. Whether it aims to bring new functionality or improve overall workflow efficiency, the product needs to be designed with a specific aim in mind.
Generally speaking, there are two types of plugin products: vertical and horizontal. The type you choose will determine how you design, develop and market your plugin. Vertical products are built for a particular industry, for example finance, property or medical whereas horizontal plugins can service a range of industries with similar, but not identical requirements, for example, analytical software or our GDPR Cookie Compliance plugin.
Both types of products have their pros and cons and knowing your target audience from the start will enable you to identify the best development strategy.
The first step in any design process is research. You need to identify your target audience and actively gather information about their workflow activity. This will help you identify the problems that your plugin needs to solve, the value it needs to add to the user and the best way to present it to them.
The next step is to research what other plugins are out there and analyse what they do well and what could be improved. Read WordPress blogs to keep up to date with the latest trends, ask your target audience for feedback on ideas and conduct a SWOT analysis to better anticipate what problems you could run into further down the line.
Think carefully about the features you want to include. Sometimes adding as many features as possible to a WordPress plugin is not a good idea. The majority of your users won’t use them all but will still receive a plugin that is large and potentially bloated with unnecessary code.
Before the plugin is released, it’s beneficial to offer a select group of users access to a beta version of the plugin. This enables you to gather feedback, make adjustments and fix any bugs. In selecting your test group, make sure to include different types of customer from your target demographic. These customers should differ in age, job level and computer literacy to give you as broad a range as possible.
Self-distribution of your premium plugin is normally done via your website that is usually running a WooCommerce system behind it. This is the most rewarding but also the hardest way to distribute your premium plugins.
The biggest marketplace for WordPress plugins out there is CodeCanyon. You need to submit your plugin for their approval first after you follow their specific guidelines. Very often, CodeCanyon won’t accept your product as they only take plugins that they believe will be a commercial success.
WordPress plugins are priced as SaaS products – that means that the customer is charged a tiny percentage of the real costs that went into the development of the plugin. However, the total amount of users who purchase the plugin can make it all worthwhile as they collectively fund the development of the product.
The main decision will be between recurring vs. one-time sale.
Most premium plugins nowadays have an annual subscription model: they will automatically charge you every year to keep their product up-to-date, release new features and provide on-going support.
One-time sale is increasingly very rare. It used to be the main revenue model for WordPress plugin developers until about 5 years ago when things started to change rapidly.
Without on-going stream of new sales, the development of the plugin and especially the on-going support cannot be sustained which is why one-time sale is no longer popular nor a recommended model.
Customers often make their buying decision based on value for money. The type of premium plugin that you develop may differ in price and complexity to the next, but the one key selling point that should remain constant is that the value of your service should outweigh the price paid. Typically, there are three main premium plugin sales models:
Complexity is your starting point for figuring out the level of support you’ll need to provide, which will consequently dictate your price point.
The final and ongoing stage in any product development strategy is promoting your product to potential customers. Typically, premium plugin companies market their products in various ways, depending on where their target audience is likely to be found online. Some strategies include:
One of the most effective strategies for attracting new customers is offering a freemium version or free trial of the software. Enabling new users to ‘try before they buy’ works well as there’s less need to sell your software based on promises. Instead, you can showcase the benefits and features through your marketing and then let the product speak for itself.
No matter which sales model you use, or what type of premium plugin you develop, the key factors in a successful product strategy remain the same: know your audience, solve a common problem, provide outstanding support in whichever form is most appropriate and offer a free trial.
