A spike in marketplace apps
The use of marketplace apps is on the rise. We’re seeing this trend in the e-commerce space with increased demand for Shopify apps and in the tech space with interest in B2B SaaS products on the Atlassian Marketplace soaring. In fact, on Shopify, the vast majority of merchants (87%) rely on Shopify apps to run their businesses and 84% of apps on the Shopify marketplace have earned revenue for their owners. Meanwhile, Atlassian, experienced remarkable growth in 2020 with its stock increasing almost 100% and use of its app marketplace is growing at a fast pace. For app developers, this presents a promising opportunity to build software for the Shopify App Store and Atlassian Marketplace.
We spoke with Volker Schulze, CEO of Accxia, about Doublecheck for Jira, an app that “doublechecks” that the user wants to send their comment to a customer. This helps prevent internal messages from being sent to the wrong party. Volker’s team at Accxia has developed numerous apps for the Atlassian Marketplace to address customers’ needs that haven’t been met by the original software.
The Atlassian Marketplace is a platform housing apps that serve as add-ons for Atlassian products. These apps enhance the functionality of Atlassian software such as Jira or Confluence and they improve the user experience. There are many perks to building and hosting an app on the Atlassian Marketplace. Atlassian has a large customer base, meaning there is a substantial sized audience ready to use the app you develop. Volker noted that Atlassian software is used by 80% of the Fortune 500. As a developer, you do not have to pay Atlassian to post your app on the marketplace and customers will be able to easily leverage your app from their product instance using the Universal Plugin Manager.
Since Schulze has extensive experience with Atlassian app development, we asked him to share his advice for first-time developers. These tips apply regardless of which marketplace or app store you are building an app for but are based on his experience.
Advice for Atlassian App Development (Or Any App Development!)
1. Do Your Research
When it comes to developing an app, Schulze stressed the importance of being intimately familiar with the software. He explained, “You need to know software, so in the case of Doublecheck, we had to know Jira inside and out. And you need to make sure that when you produce an app, that it doesn’t disturb the technical functionality and it doesn’t disturb the way Jira works.” The best way to do this is to take time to learn everything there is to know about the software. Rushing this step could lead to obstacles down the road.With Atlassian, there are three deployments: Server, Data Center and Atlassian Cloud. Doublecheck for Jira was initially built for Server and it took time to also get certified for Data Center. If you are developing an app for Atlassian you will want to know about each deployment and determine if the product you are developing will work on one or all of these. Doing your research early on will help you decide on the best path for your app.
2. Become Familiar with the Competition
Early on in the Atlassian app development process for Doublecheck for Jira, Schulze studied the Atlassian Marketplace to get a sense of the competition. You will want to be familiar with other apps operating in the same space as your app. What do they do well? What are areas that could be improved? How can you set your app apart from the others? Would modifying the app functionality, branding or marketing help you get a leg up?
3. Be Patient
Developing an app takes time. Schulze noted that it will take two years or so, so be patient. He added, “Don’t despair. It will take a while. There is competition on the marketplace. If your product is good and it functions the way it should function, the audience will come.” He likened the app development process to a rolling snowball. The more it rolls, the bigger and better it becomes, but it takes time. Sure, there are ways to accelerate your timeline, for instance, with marketing. We will discuss this further later in this article.
4. Nail Down Your Audience
Knowing who your customer is, is key. In some cases, the user of the app is different from the person with the purchasing power. Schulze described, “We need to identify the profile of who is using the app and who is buying the app. We have to attract both the user and the buyer. The user needs to say ‘I like this app’ to the buyer who says ‘I will buy it’. Or the decision maker needs to ask ‘what is there in the market?’ and the user goes to the Atlassian Marketplace to find the solution. It goes both ways.” Once you understand who your target audience is, you will want to figure out how to best speak to them and communicate the value of your app.
5. Prioritize Marketing Early On
Of course, you have to spend time developing your app before you can start marketing it, but don’t wait too long to begin marketing. This will enable you to expand your customer base and with more customers comes more valuable feedback that you can use to refine your app. In recent months, Schulze spent time learning about social media messaging and innovative approaches to market Doublecheck for Jira and he is using this knowledge to bolster the marketing of his other apps on the Atlassian Marketplace.When it comes to Atlassian app development, or any app development, testing out marketing strategies is key to helping your app stand out. Schulze is currently experimenting with audiograms. He also spoke about another benefit of marketing, “Over time the prices [of Doublecheck for Jira] went up and if we had done more marketing, we could have accelerated the price increase. What we sold for $50 is now sold for $3,000.” Investing in marketing can lead to significant growth for your business, so don’t put this task on the back burner for too long.
6. Keep Up With Platform Updates
Another piece of advice for Atlassian app development that applies to all app development for marketplaces is: Make sure your app is at the latest version of the software. Schulze noted that this is a key component of good Atlassian app development. Every six, eight or ten weeks Atlassian issues new functionality and it is crucial that you are keeping up with these updates and that your app continues to work, even given the changes. If it doesn’t, your app will not be of use to customers.
7. Assess Your App’s Worth
Once you have made significant progress with your app development, it is a wise idea to see what your business is worth. You can get a free valuation from FE International. What are your goals for your business? Knowing the valuation of your app can help you determine your next steps. If you are looking to divest of your business at some point down the line, focusing on scaling so you can get the highest multiple may be the best next step. Schulze has found that increasing marketing efforts can lead to considerable returns and he recommends taking this approach.
Determine if Selling Your App is the Right Choice
If you are looking to shift your focus to a new venture, are interested in a lump sum payment, are drawn to the early app development stages but not the maintenance, or you want to free up your time, divesting might be the right choice for you and your business. Demand for marketplace apps is surging. We discuss this in the 2021 M&A Outlook, “While standalone SaaS businesses remain popular, marketplace SaaS applications, like Shopify and Atlassian apps, have also proven to be highly sought-after, as investors seek SaaS businesses with exposure to e-commerce brands and remote workflow optimization.” Given this, now is an optimal time to develop and sell a marketplace app.
Resources to Review as you Prepare to Exit
As you prepare to divest of your business, you may be interested in the following: