As a software development company, there isn’t a feeling quite similar to when prospective clients are willing to pay a sizable sum for your offerings. Although developing and designing software to completion may be personally fulfilling, the real reward comes when the piece of intellectual property you’ve built starts generating revenue. To achieve the desired results, you need to add value to your software solutions.
So, the question is, how do you install more value into your software? In this article, you’ll find some insights on strategies in software monetization you can implement so you can maximize the profit potential of your products. Continue reading to learn more.
Strategies for monetization software are good for B2C and B2B alike as a subscription-based model. The reason for it is that it can drive revenue regularly via recurring fees, be it annually or monthly. Moreover, it’s one of the few economies that the coronavirus pandemic hadn’t negatively impacted.
Some companies have seen some growth in their business despite or because of the global COVID-19 pandemic. With a subscription model, you can give your software more value by enhancing your customers’ experience through regular improvements and updates, making the most out of your products as a result.
As its name implies, software licensing refers to the legal tool that governs the use and distribution of products like software. With a licensing model, you can keep your intellectual properties protected, safeguarding them against many types of infringement, such as unauthorized sharing and duplication and software privacy. It can also help you utilize various pricing strategies like premium and penetration pricing.
The freemium strategy is about enticing users to purchase additional products or gain access to the complete software by enabling them to use some of its features. In the software market that’s been saturated with so many applications and programs, this approach can minimize the barriers for buyers in making a purchase, thereby encouraging the target audience to try out the product and see whether or not it’s a good fit for them.
Freemium monetization strategies can also help reduce the costs associated with customer acquisition. By essentially proving that your software can provide a desirable and engaging experience, you’ll give prospects value and give them the push they need to turn into paying customers.
The open-source strategy involves offering features that enable users to perform their tasks customized to their needs. However, the application of monetization happens when clients require additional premium features, hosting services, SaaS, and technical support. What sets it apart from the freemium strategy mentioned above is that the software is open-source, meaning users are also given the opportunity to make contributions to your software’s improvement.
Much like any other type of offering, there are ways to get more out of your software products than you might think. So try out the above mentioned software monetization models. They may help you profit more from your solutions.
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