European component supplier, ComponentSource, has introduced a new potential revenue stream that will benefit software houses and freelance developers making their own software components. The new financial opportunity has arisen as a result of increased demand for re-useable software components and growing trend towards more efficient and productive component based programming.

ComponentSource currently markets several hundred software components and companion products using a CD format. The full retail products are encrypted on the CD with demonstrations freely available. On payment, ComponentSource issue a unique unlock key which decrypts and downloads the product in seconds.

Initially, the company has concentrated on including products from leading specialist US and European component vendors on its CDs, such as VS/Flex from US based VideoSoft and Graphics Server 4.0 from European company Bits Per Second. ComponentSource believes that potentially however, the majority of new component products could be supplied by its own customers. Increasingly new components arebeing supplied by both individual developers designing their own OLE and ActiveX controls, or larger software houses breaking up their existing æpackagedÆ software products into component parts. For instance, a travel reservation software package aimed exclusively at tour operators, could be broken down into separate component parts, such as on-line credit card authorisation and sold into other markets. As component based programming becomes established, software houses could sell such components to each other or corporate businesses looking to include specific functionality into their own in-house applications.

Said ComponentSource Marketing Manager Chris Sayer, "What ComponentSource now offers is the vehicle to distribute, promote, sell and instantly deliver components, no matter how big the manufacturer. We will continue to only include quality products that are commercial viable and that satisfy our inclusion criteria. Our objective is to be the definitive source of software components by supplying an interactive product library to European developers that demonstrates a complete range of re-useable software and, through our CD encryption method, instantly delivers full product versions. We believe to achieve this, we must attract as many quality products as possible. That has meant looking to our customer base as potential vendors, many of whom are now designing their own components, companion products and add-ons.

"Many software houses and developers are already sitting on a potential gold mine of components ready to be packaged and sold. The ComponentSource distribution and encryption method now allows them to tap into a new source of revenue without having to spend money, time and effort professionally marketing their own components. ComponentSource charge a 3, 6 or twelve month inclusion fee to go on each CD and a percentage commission on each product sold. Not surprisingly, products with universal application do best, but equally important, is a good quality demonstration, often key in persuading would-be buyers. For developers that achieve this combination, including products on the ComponentSource CD is proving to be a lucrative side-line for a small upfront investment."

ComponentSource is a UK based company specialising in the supply of software components, companion products and add-ons to European software developers. It has pioneered the marketing and selling of components using CD technology. In particular, it is the first company to offer component vendors secure encryption of their full retail products on a freely distributed CD-ROM aimed specifically at component users.

For more information contact Chris Sayer on +44 (0) 118 958 1111