Effective Software Monetization Strategies to Drive Revenue
Building a product that is important is hard, however, making it worthwhile is even harder. How you view software program monetization, in the end, defines the payback duration and the range of normal clients with a purpose to again up the sales glide you count on to get on a normal basis.
What is a Product Monetization Strategy?
Software monetization is the manner in which a business is paid for rendering its services or products to consumers. Today every new software program product getting into the virtual marketplace must be properly aligned with its goal customer.
In the following Achal Chaurasia news, we have shared software that helps online product companies drive multiple revenue streams from day one of product launch.
The software program licensing version is a conventional technique to charge customers a licence price before downloading the software. This licence price differs from company to company. There are 3 simple types of licensing: perpetual licence, term-based licence, and consumption licence.
The first kind, a perpetual licence, means that software program owners (e.g., Microsoft Office, Adobe Creative) go with the policy that the user has to pay only a one-time fee for unlimited usage of the program. The 2nd kind is a term-based licence, also known as a subscription. In this, the user has to make periodic- annual, monthly, or weekly purchases in order to render the services. Consumption-based licence is primarily carried out for cloud software programs.
Subscription- a term most widely heard for major OTT platforms these days. It is the most famous and renewed model for “SaaS” solutions. It is applicable for companies or people who don’t need to necessarily download the software on their devices but can have easy access to it. Most often, SaaS programs let consumers choose subscription plans based on their preferences. They can pay fees depending on the plan they have selected- weekly, monthly, annual, or weekly set plans.
Examples: Atlassian, Basecamp, Salesforce, Zoho, Upwork, Microsoft Teams, Hubspot, Slack
Freemium is a software program product monetization that convinces clients into spending money for services after giving free services to them for some time. The Freemium version can be a smart choice for any virtual product that is prepared to offer low-access boundaries simply to draw and keep new clients. The most preferred or most opted choice is to give a 30-day free trial for the consumer and let the user determine whether or not they want to continue with the services by paying a certain amount or not.
Examples: Spotify, King, Hinge, Slack, Asana, Dropbox, Skype
This is a business to customer policy and allows the users to make purchases within your software. Such purchases are made especially via mobile phone therefore it is a great way to generate revenue for mobile all developing companies and individual developers. However, the regular pop-ups and urge to spend money in order to resume the services disrupt the user and thus send off a negative lead generation. In order to make sure that users are making the said purchase, you can notify the users of making in-app purchases by giving them push notifications; these would not only help you generate revenue but also generate consumer satisfaction.
Pay as You Go
The pay-as-you-go software monetization strategy is very flexible and has no required pre-commitments which is what makes it user-friendly and acts as a good entry for customers. This software gives the user the privilege to pay one time to render the services at that particular point in time. The facts here are simple- if you need it again, you can pay for it again and thus, pay only when you feel the need to use the services and not otherwise.
Great monetization techniques are ever-evolving and primarily based on the company’s goals, which change with the ever-changing world of trends and choices. They need to be flexible with time, market, and users. We hope this Achal Chaurasia blog was helpful in providing you with Effective Software Monetization Strategies and helping you generate revenue.
Also, read- Some Effective Ways of Incentive Marketing
Author- Achal Chaurasia
A young businessman who has been in the line of entrepreneurship for quite a few years. He is an active learner and loves to know more about new technological developments CG up as well as how they can be put to great use to yield better results for the society.