myDevWares plugin/script marketplace - dead startup code
Back in 2009 I tried to start plugin/script marketplace for developers. I failed to get it completed, but herein I have documented the code progress, plan, and failed ambitions.
This is a purely e-commerce venture, so the location will be at myDevWares.com or myDevWares.net
This business is a C2C service, by which developers and customers can exchange goods and services over the internet.
I choose to be a Sole Proprietorship – for now I think that a single owner/developer/designer (me) is sufficient for this venture. If I need help, I can hire other developers for small jobs at a minimal cost.
Capitalize on the booming demand for web developer resources and create a place for developers, buyers and clients to interact and exchange items.
Right now, there are no really efficient and specialized competitors in this field.
As a part-time developer and web hobbyist, I noticed the large number of people like me looking to sell big and small intangible items over the net. Items like templates, websites and site content are high in demand, and there are always people ready to buy and sell this sort of stuff.
Many part-time developers like me do not have the time to make their own portfolios, or sell large items in a professional manner. They want a quick and easy way to sell their wares and hobby items, and I think an ebay-like marketplace would be the perfect solution.
Customers, and other developers who trade intangibles online, have to deal with the problem of online scamming, as well as copyright infringement. Thus I think, a marketplace that could provide escrow services as well as a feedback rating system (similar to ebay) would be the perfect way to solve these problems.
Strengths:
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In high demand
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No specialized, efficient competitors
Weaknesses:
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Problems with dealing with money online
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Plenty of time needed to develop the site
I can overcome the first weaknesses by getting my system verified and secured, to prevent money-handling problems.
The second weakness can be overcome by hiring fellow developers for small jobs, and partly outsourcing the work for small wages.
Start and Duration
Start Date: May 25^th^ 2009.
This start date is perfect: school should be finished by then, and I will have time to work on the project all through the summer. This is also the time when there are many part-time developers out there looking for small jobs – so I can do cheap outsourcing.
I have plenty of experience and skills in the web development field, having been a hobbyist/part-time developer for many years. I have participated in the web development community long enough to know the ins and outs of the business.
I have single-handedly built one major web application before (www.sitesonar.net) from scratch, using the most common server-side programming language and database solution: PHP/MySQL. In addition to this, I have also built/co-built smaller websites like: www.familyofgood.org, www.whizdev.blogspot.com and many other small projects.
Having been part of the web development community for quite a while, I have many contacts and partners that could help me with this project. I also know the jargon of the webdev crowd, and have many approaches to promoting my project and services.
I am currently in Grade 10 at AMDEC. Based on a self-assessment of my entrepreneurial skills, I am a creative person with competitiveness. I also have plenty of interest in this field and I am a very organized person.
To provide an easy, efficient and safe way to exchange web development goods and services online, by creating a dynamic and user-friendly marketplace. Our business philosophy is to focus on ease and safety for our users. All items are verified by myDevWares staff. Sellers get the confidence of knowing that their item is always paid for before it is given to the buyer, and buyers get the confidence of knowing that the item has been verified by staff and he/she can download the item instantly after payment.
Professionals in the field of web development, along with researchers, concluded that the total market size for web development resources in this broad field is “huge”, around $3 billion US dollars annually. They also speculated that a similar project, if properly exploited, could bring in a revenue around $25-$150 million dollars a year. Although this information was released a few years ago,, and specifically for a CMS (content management system) project, it is closely tied with my web development project. The numbers on the size of the market would be very similar for my venture – although the revenue estimations may be different.
Moreover, because of the nature of web development, the market size is not limited by location, and not as much compared to conventional business, by language. Web development trends and market styles are usually very similar all over the world, and web development sites often link with each other despite language barriers.
The primary group of people who I chose to complete my survey were web development enthusiasts, freelancers, hobbyists, web entrepreneurs and other non-professionals. The reason I chose non-professionals and those who do not work fulltime, over fulltime professionals, is because the former group is more likely to outsource their work, and buy or sell web development goods.
About 35% of the 108 people who viewed my survey page completed my survey. Out of those, 89% said that they would be interested in my product, and 40% said that they were already using a similar product. Out of those 40%, 90% agreed that they would switch to my service if it were faster, cheaper and safer.
Based on the study of activity on web development forums, I concluded that the size of my actual potential market is around 15 000 visitors per month, and the number who would actually use my service and buy or sell something is around 10%. My target market would be those living in North America, or West Europe, as this is where the large majority of web developers live. However, Asia, specifically India, is a rapidly growing market for web development resources – as I learned by studying my logs, or website statistics on the survey page.
The demographics of my market vary greatly when it comes to income – some had no jobs, and many had a sizeable income. Not surprisingly, 100% of the market had internet access, and about 90% were willing to spend online.
Almost all of those surveyed agreed that a 5-10% commission only after the item is sold is the most reasonable fee for this type of service. The web development demographic is known for being very picky and critical when it comes to quality of design and website aesthetics. Some of the people I surveyed said the “looks” of my site was enough to make them use it – or not. Others also said that they expected a high level of efficiency, and I needed to code my website well for them to consider it.
This website is my main competitor in the online web dev buy/sell business. The good thing about this website is that it has a very clean and user-friendly design, as well as a lot of high-quality content. They also have a very good reputation for providing elite, high quality goods.
The downsides of this site (this is where I compete), is that ThemeForest only offers templates that are non-unique, and cannot be resold by developers who buy them. I plan to offer an option for both unique, and non-unique items on my site, as well as offer resale options. Also, ThemeForest only allows high-quality, completed content. I plan to allow both high-quality and medium-quality goods, as well as incomplete resources to broaden the market and accommodate developers from all skill levels. ThemeForest does not allow for freebies, or a large variety of resources. I plan to offer resources from all categories, as well as freebies.
Other marketplaces force you to add money in fixed amounts, so, for example, you end up paying $20 for an $8 item. They also force you to make unfair minimum deposits while at the same time refusing to allow you to withdraw the balance. Even as a person who earns money by selling items on their sites, you are forced to wait until your earnings have reached amounts of up to $50 before you can withdraw - and that also is only processed on certain days of the month. To top it all off, your money expires after a certain period of time!
myDevWares will offer a very reasonable minimum deposit of $2 US, which can be withdrawn at any time. Your money never expires, and you are never forced to deposit money in fixed amounts. You are permitted to withdraw your earnings at anytime, no matter how big or small.
Another very important factor is the very high commision that ThemeForest demands: 40%! They also rarely sell items over $50. I plan to offer my site with as low as 9% commission, and allow items with prices upto $100 000 ! I also will allow developers to set their own price (which is not allowed on ThemeForest, because the staff choose the price based on their opinion of the quality of the product).
Based on these grounds, I think I can compete well with ThemeForest. Overall, their competition will not have much impact on my business. I do however, have to keep my wits about me, and watch their business as well as others to stay competitive.
To compete with ThemeForest and other similar businesses, I will position myself as a low cost, high-quality place where ALL developers, regardless of their skill level can participate. I will also advertise my business as a “quick and easy place to speed up project delivery time” because many developers will come to my site looking for items that they can use in their projects with other clients. When developers are doing projects for others, they need a large variety of UNIQUE resources (they cannot be using resources which are used all over the internet). Since they cannot find a large variety of resources on ThemeForest, nor can they find unique items there, I can provide both these services, and effectively place my business in a higher position.
I will also allow resale of items bought on myDevWares, as well as incomplete items. Many developers do not have the skills to complete big projects or large scripts. And the professional developers who DO have the skills to do so, often do not have time to create the bases of these resources. Thus, I will allow resale and incomplete items on myDevWares – giving the opportunity for developers of high-skill level to speed up their projects, while developers of low skill level to sell their incomplete items.
Slogans to promote my position: I will use all of these slogans on the main page of my site.
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“Speed up your delivery time; amaze clients.”
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“Why reinvent the wheel? Find thousands of base scripts and layouts to use in your projects - right here.”
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“Turn those old dev resources sitting on your USB drive into cold, hard, cash. Without getting ripped off. (myDevWares has the lowest commissions in cyberspace).”
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“Unique items are our specialty. myDevWares has hundreds of unique items for you to use in your projects – no one will ever know that you didn’t create that project from scratch.”
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“Did you just see an item that gave you an inspiration for a better one? Why start from scratch? Buy it, and then resell your improved product – all myDevWares items come with resale rights.”
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“Dust off those dev items sitting on your USB – and convert them into pure profit.”
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“myDevWares is like the eBay for web stuff – without the ripping off part.”
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“Step 1: Play around with Photoshop. Step 2: Admire your work of art, and upload it to myDevWares. Step 3: ????. Step 4: Profit!”
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“Is that blank screen staring at you, just daring you to be creative? Browse myDevWares for a boost of inspiration!”
These slogans will effectively convey the idea that developers have a quick and easy way to make money without high commissions, as well as spruce up their own projects and create a win-win situation for everyone.
My promotion plan is to emphasize the ease and usefulness of myDevWares to developers using the slogans I created above.
Since my business is purely on the internet, and does not depend the least of location, it makes sense to advertise online. I plan to spend about $50 a week on online advertising agencies like Google Adsense, for the first few weeks after launch.
I have quite a few business contacts and informal relationships with hundreds of developers in cyberspace. I also have good reputations and standings in developer communities and forums. I plan to promote myDevWares in these communities by:
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introducing myDevWares into related discussions on forums
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advertising myDevWares in the signature of my forum posts
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giving press releases to popular developer magazines and blogs
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paying upto $60 to prominent bloggers for them to advertise my service on web development blogs
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offering discounts and freebies in web development communities to promote my service (developers love freebies)
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commenting and participating in web dev communities, while offering a link to my service.
These promotion plans will effectively create interest and “hype” for myDevWares, and also let the world of developers know about my business.
Since almost all the people I surveyed thought that a commission between 5-10% is the price that they are willing to pay, I think this is the most effective payment method.
9% commission still sounds very low compared to 40% on a competitor’s website, while still giving me a reasonable amount of profit from each sale. However, since my website will allow the selling of items up to a hundred grand, 9% will be too much for expensive items. I will use the following pricing scheme to make a reasonable amount of money, while keeping it low in seller’s eyes:
For items under $1000: 9% commission (lowest commission in the industry, paid only after the item is sold)
For items above $1000 $50 flat commission (only after item is sold)
The above pricing scheme will maximize profits, while keeping prices low in the eyes of customers. I will also show proof that my commissions are the lowest on the internet by comparing it with ThemeForest and any other competitors.
Without doubt, the only place for myDevWares will be online, at myDevWares.com.
Lawyer – I will consult a lawyer for the legal issues surrounding e-tail, to explain laws concerning online business.
Accountant - I will be using an accountant to keep track of my money, and profit. Since the money-management is rather simple in this venture, I do not need a professional accountant. I can keep track of my own expenses (with the help of my dad, who used to be an accountant) in a simple Excel sheet. Transaction records and customer data is automatically stored by the script in a MySQL database located on the website.
Insurance Agent - My venture does not require insurance, since there is not much investment that is needed in this venture, and little liability since the business is located purely online. Once the website grows bigger, I may need insurance to cover the possibility of loss of data, or security breaches.
Marketing Consultant - When launching my business I will consider talking to a Marketing Consultant to help me get the word out about my venture and to develop online advertisements. However, most of the marketing and promotion will solely be managed by me.
Technology Consultant – I will be my own technology consultant. I have plenty of knowledge and experience when it comes to website development, and I am very familiar with online payment processing, domain registration, website hosting, and already possess the necessary hardware/software to do all of this.
In the beginning of my venture, I will be able to manage and administer the business single-handedly without a problem. However, once the word starts to spread, I will need a moderator, or staff, to constantly review items before they are posted on the marketplace. The job of a moderator is very simple, and the only qualification needed is a bit of experience in the web development field (and some trustworthiness). A moderator simply has to view, and approve/reject items before they are posted on the marketplace. Remember, that all goods sold on myDevWares are intangible, and can easily be uploaded by the seller for approval. The moderator simply has to make sure that the correct items are uploaded to the marketplace (as described in the seller's ad). The moderator will review the ad, and the uploaded item, and reject it if the item is fraudulent, copyrighted or spam. To hire a reviewer or moderator will be easy. I can hire my cousin (or any other trustworthy candidate), who has experience in this field. He will not cost too much, and I can hire him for about $50 a week. Being a moderator is an easy job that the person can do from home for a few hours.
I also may need someone to do routine and monotonous jobs on the computer, like managing files, and adding content to my list. For this, I can hire my younger brother, who has experience with working on a computer.
I do not need any additional physical resources since my venture is located purely online. I already own necessary development hardware such as keyboards and testing servers.
Item Purpose/Description Cost
Ergonomic Keyboard and Mouse Needed to write and develop websites for long hours. Already owned previously Notepad and planning materials/stationary Needed to write ideas and plan/organize business. Already owned previously Computer desk Need a workspace for development. Already owned previously
I will not need much additional technological resources except for a hosting plan and security services. I already own a computer and all necessary software. I also have internet and telephone lines set up and ready to use.
Item Purpose/Description Cost
Computer Needed to write and develop websites for long hours. Already owned previously
HP a1667c Computer with widescreen monitor
Testing server Needed to test website functionality. Already owned previously
XAMPP Personal Testing Server - free
Website Hosting/Domain Name Need a place to host the website and domain name. $6/month
Hostmonster Unlimited Web Hosting
Development software Needed to build and maintain website. Already owned previously.
Adobe Creative Suite 4
I only need hosting and development resources.
Item Supplier Cost
Website Hosting/Domain Name HostMonster Unlimited Web Hosting $6/month SSL Security Certification GeoTrust SSL Protection (purchased through HostMonster) ~$100 per year
The entire website and venture will be located at mydevwares.com
My website will be online 24/7.
I plan to spend a ½ hour – 1 hour each day, Monday to Friday, morning and evening, after and before school, for moderating/approving items, as well as responding to customer service requests.
On weekends I will spend as much time as needed to moderate/approve items for the market place, answer customer service requests, promote and advertise my business and also maintain the website. This may vary, depending on the amount of advertising I am doing that weekend, probably no more than 4 hours each day.
All transaction and posting records, as well as user data, will be stored by the website in a MySQL database. This data will be accessible via an administrator interface on the website. Regular backups will be made of this data.
Balance sheets and accounting records will be stored using Microsoft Excel Spreadsheets.
I will need some web development products and freebies on the marketplace to kick-start the website, and offer incentive for developers to visit, as well as for promotion purposes.
Product Quantity Reason
Web development resources (eg. icons, scripts, templates) About 10-20 resources will be needed. I will need some web development products and freebies on the marketplace to kick-start the website, and offer incentive for developers to visit, as well as for promotion purposes.
The cost may vary – from \$50 to \$400
I will create some of the web development resources and freebies that I will need to start the website, and the rest I will buy from other developers.
All inventory, products, resources and records will either be stored on my personal computer and backup USB drive, or on the internet with my hosting plan.
My venture, technically speaking, is intangible and not located in any particular city. It is an automated service which runs using computer programming. Therefore business property taxes are not an issue for me.
I will need to register my business with Service Ontario. This will be done as soon as I have completed and finalized the program.
I do not need a Vendor Permit, as my business is tax-exempt (my business does not sell goods or services in Ontario, therefore PST does not apply). myDevWares is purely a service wherein the site acts as a go-between the buyer and seller, and simply transfers the money/goods to the appropriate parties. This is classified as being an agent, and is therefore tax-exempt. It is the seller’s responsibility to charge tax, if an item is taxable. Legally, digital goods sold purely online are non-taxable.
According to the Canada Revenue Agency site, myDevWares is exempt from GST. There are three reasons for this:
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This service is intangible, and is not located in any particular city/country.
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The only goods being sold over the myDevWares are intangible and tax-exempt.
As an agent, I will never be exporting or importing tangible goods, therefore these laws do not apply to me.
However, I will implement advanced security and data storage systems to ensure that the business complies with privacy laws. I will only collect data that is needed to operate the business. . There are highly trustworthy security services online such as VeriSign which scan website security points and ensure data safety. VeriSign even guarantees up to $200,000 in case of data loss or hacker intrusion. The cost for using a security company like VeriSign is only about $100-$350 per year. No lawyer is necessary.
I will also have to take into consideration the international copyright laws, since many intangible goods that are sold on the marketplace are subject to copyright. To prevent “pirated” and “stolen” software and goods from being sold on the myDevWares marketplace, I will:
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Place full liability and ownership on the seller for the goods that he/she sells by placing a clause in the Terms Of Use which places the seller in complete responsibility for the item he/she sells.
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Ensure that the moderator makes sure that every item posted on the marketplace does not cause any copyright infringement. There will also be a system for authors and the community to “flag” items which they think may be infringing someone’s copyright. A moderator will then investigate the matter and act appropriately.
myDevWares
Projected Cash Flow Statement For the six months ending December 30^th^, 2009. ** ** Cash In Commission Revenue Ad Revenue Personal Investment Government Grants Total Cash In Cash Out Online advertising costs Hosting/domain fees Outsourced development Security costs Personal drawings Inventory purchases Business licenses/fees Consultants Total Cash Out Net Cash Accumulative Cash
Choices **1. What is your annual income?**
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9 24% o \$0 (no job)
11 30% o under \$2,000
1 3% o \$2,000-\$5,000
0 0% o \$5,000-\$15,000
16 43% o Over \$15,000
37
**2. Are you officially employed, a freelancer or a hobbyist?**
9 24% o officially employed (full time)
10 27% o officially employed (part time)
13 35% o freelancer
2 5% o hobbyist
3 8% o not working at all (in web development or ecommerce)
37
**3. Do you *sell* web development items online (such as templates, websites, content, domain names, etc.)?**
7 19% o Yes, I often *sell* web dev related items online
21 57% o Sometimes, if I have extra items to *sell*
2 5% o Never.
7 19% o No, but I might *sell* web dev items in the future.
**4. Do you *buy* web development items online (such as templates, websites, content, domain names, etc.)?**
5 14% o Yes, I often *buy* web dev related items online
20 54% o Sometimes, if I can’t build the item myself, or need to outsource
1 3% o Never.
11 30% o No, but I might *buy* web dev items in the future.
**5. What is the main reason you may feel reluctant to buy or sell web dev items online?**
28 76% o Possibility of fraud or scam
5 14% o Lack of an easy and efficient way of selling online
0 0% o Too young (and may not be allowed to or able to use buy/sell services)
3 8% o Not worth the money
0 0% o Involved in other work, I do not have time to conduct buying/selling
0 0% o Other (please specify:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_)
**6. Would you buy or sell web development items online if there was a safer, easier and cheaper way to do so (and it solved the problem you selected in question 8)?**
15 41% o Yes, definitely
22 59% o Maybe, if I ever needed to.
0 0% o No, I still would not buy or sell web dev items online.
If you selected no, please briefly explain why
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
**7. If there was an efficient, easy and safe service in which you could buy or sell web dev items online, how much would you be willing to pay for it?**
5 14% o \$2-\$7 per month flat fee
0 0% o \$7-\$15 per month flat fee
0 0% o \$15 + per month flat fee
31 84% o No flat fee or signup fee, but the service can take 5-10% commission of sale from the seller.
1 3% o 10-20% commission of sale from the seller.