[Guest authored by Alison Simpkins of Access International. Access is a FastSpring partner that helps grow software publishers' revenue through their international business development team.]

If expanding into international markets is a key element of your overall growth strategy then you’ve probably already considered some of the challenges that adapting your software application for new regions can bring. The increasing pace of globalization, accelerated by the growth of e-commerce and availability of on-demand applications, is forcing software publishers of all sizes to consider their solutions within the context of a much broader marketplace and to further examine regional markets for new opportunities.

Localization services offer many software publishers an affordable, scalable method for international expansion, enabling them to successfully target global technology customers and build sales in regional markets. While some large publishers can afford to manage localization internally, most find it far more cost effective to outsource the work to companies that specialize in localization. But for smaller publishers faced with limited global marketing options, republishing may yet offer the most viable solution to international expansion — especially among those considering the traditional retail channel.

Republishing arrangements work especially well for publishers who want to ready access to the international marketplace, but who, for one reason or another, are not ready to bear the costs of new market development. The republishing model also allows publishers to reach new customers in several different regions simultaneously, allowing even small software publishers to compete in the rapidly developing global economy. Typically, a republishing arrangement is structured as a licensing agreement in which the original software publisher grants regional sales and distribution rights to a republisher — ideally one specializing in both the local market and in the original publisher’s application category.

While the specific terms of each agreement will vary according to the goals of the publisher and their republishing partner, most agreements will necessarily include localization for the targeted region. The republishing partner will also market and distribute the application throughout mutually agreed upon channels, providing all of the necessary support and logistics needed to ensure successful penetration within the designated market. Most often, this arrangement yields pure profit to the original publisher who does not undertake any of the risks inherent in new market development. Rather, the original publisher receives a royalty from the republisher in exchange for licensing its sales and distribution rights within the specified region.

If you’re considering the republishing model as a way to develop additional streams of revenue from international markets, then there are several key things to consider as you begin to explore your options.

If yours is a multi-regional strategy, then it’s likely that you’ll be working with more than one republisher. Few, if any, republishers are adept at localization and market development within all application niches, or across all global regions. Therefore, it’s absolutely crucial to carefully research and vet your potential partners within each region, as your choice of republishing partner will largely determine the success of your endeavor.

What are some of key things to look for in a partner?

Because most republishers tend to focus on a specific solution category (utilities or games, for example), it’s best to seek out those who already sell into your category and understand your niche. Make sure, too, that the republisher understands the regional culture and also has a micro-level understanding of the local market for your category. It also helps to have feet on the ground in the local market, especially if you’re focused on the retail channel. Is there someone within your organization who is already in the region, who speaks the language, and who knows the retailers? If so, this person would be ideal as he or she can visit the various retail locations, talk to retailers and identify which republishers are selling well within your category.

You’ll also want to know who the local competition is and which republishers are representing your competitors. Which republishers, if any, are successfully representing applications or solutions that complement your own? Remember that you want to find a republisher who is incentivized to sell your product. This often means someone who doesn’t already have your solution, but who needs it to extend or complete an existing line. This information will also come in handy later on when you’re negotiating with potential republishing partners. For instance you may be able to negotiate a higher licensing fee if you know in advance that a particular republisher needs your solution.

If you don’t know where to begin your search then seek recommendations from other software publishers. Do any of your partners or colleagues have personal experience working with a particular republisher in your target region? Try to get recommendations from as many other publishers as possible — especially those who are in similar lines of business. Getting recommendations before you begin your search will help you avoid the pitfalls of working with inexperienced publishers, or those who simply do not need or understand your solution.

If you’re simply too busy focusing on your core business to thoroughly research potential republishing partners, then you may wish to consider outsourcing your search to an international sales and marketing organization or other rep firm like Access International. These organizations work with international republishers in global regions everyday and can readily identify the best partners for your business with little, if any, up front investment. Some will even handle contract negotiations with republishers on your behalf.

If you plan to handle the contract negotiations on your own, then you’ll want to make certain that the terms of any agreement you make with your republishing partner clearly articulate the branding, channel and overall go-to-market strategy. Will the software be sold under your brand or under that of the republisher? Which channels of distribution will used; OEM, retail, online, or other? How will the product be supported within the channel and when will it go to market? Generally speaking, it can take up to three months from the signing of a contract for your product to get to market so you should carefully consider the timing of all republishing initiatives within the context of your overall sales and marketing plans - especially if your agreement calls for any form of local support from you, the publisher.

Whether you decide to outsource your search for republishers or go it alone, it helps to know in advance what to expect from your partners. Establishing a republishing relationship need not be difficult and can yield significant financial rewards. By taking the time to fully explore your republishing options in advance, you increase the likelihood that your global expansion efforts meet with success.

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