How to break into the educational software market

And apparently there is much money to be made from educational software. Recently revealed statistics from the US demonstrate that this industry is indeed booming and enjoying steady growth.

In late December, the Education Division of the Software and Information Industry Association (SIIA), which is the principal trade association for the software and digital content industry, released its "2011 US Education Technology Industry Market: Pre-K - 12 Report". According to the report, the overall value of the Pre-K - 12 technology market for non-hardware education technology is valued at $7.76 billion, which is an increase of $260 million from last year's valuation of $7.5 billion.

This might still be a conservative estimate, says Simon Campbell-Young, CEO of Phoenix Distribution, a South African-based software publishing and distribution company. "That amount can easily be much higher when one considers that it doesn't even include figures from sales of software that has been developed for the higher/tertiary education market," he notes.

Follow a few steps before breaking into the market

Campbell-Young says it would behoove companies and distributors that want to break into the lucrative software education market to follow a few steps first. His advice is that they should do research and educate themselves about what types of software is already being used in schools.

"Find out how many of your company's existing sales are already to schools, educators, universities or colleges. They could already be using another product offering from your company - such as anti-virus software or productivity suites," Campbell-Young says. "Then find out how and for what purpose it is being used."

Campbell-Young notes that investing in the channel will take time and patience. However, that doesn't prevent a few companies from attempting to take shortcuts and trying to bypass the normal distribution channel. An educational software manufacturer recently made headlines in the United States for resorting to dubious practices to sell its product. Sales reps of Brainstorm USA, claiming to be affiliated with local schools, have reportedly been targeting mostly Spanish-speaking parents in Washington State and trying to fob off expensive software to them by convincing them that the company's software is recommended or required by their children's schools.

Companies resorting to such nefarious tactics will cause lasting damage to their reputations and their brands, warns Campbell-Young, so it is simply not worth it in the long run. Instead, he says it pays to follow the correct channels.

"Schools will be far more likely to take on your products if you offer it through a reputable channel. To get your foot in the door with a reputable educational reseller that will push your products, keep in mind that most companies offer their products and license pricing at a special educational and volume discount," advises Campbell-Young. "Be willing to provide dealers with assistance such as complete, yet easy to understand information about your product. If they truly understand your product, they will better be able to sell it, which is a win-win for everyone."