As we know, the life cycle of software development consists of several stages: project planning, testing, prescribing technical documentation, and implementation (including high-quality, warranty technical support).
The survival and profitability of a particular software product largely depend on the methods of its monetization. Nowadays, SDK is considered one of the easiest ways to monetize users’ non-personal data and make the most of it.
In general, desktop software monetization is a set of measures aimed at maximizing the profit from software. Each product’s monetization strategy is unique and must take many factors into account. In order for the software monetization to work as efficiently as possible, it is necessary to solve many problems – which sets of modules will consist of typical products, what license restrictions will be applied to them, how the restrictions will be controlled, on which media the client will receive a license, how to keep records of issued licenses, how to update them, how to build a sales process through distributors, how to collect product usage statistics, and much more.
Relevant ways to monetize software
Before talking about ways to make money on a software product, it should be noted that three main platforms guide developers:
- Web.
- Mobile.
- Desktop.
As a rule, large, leading players today are working on their products following the hybrid model – with an eye to both the web and mobile applications. The advantage of this approach is that it allows you to reach the widest possible target audience of the software.
The monetization options may be different. So, the following types of monetization are typical for web products:
- Subscription with the possibility of monthly payment for the selected tariff. Here you can include all types of package offers in the category, from a stripped-down demo version to activating a professional account pumped in every sense.
- One-time purchase of services. It is a less cost-effective way to monetize compared to recurring payments. Some companies nevertheless practice this desktop monetization model, compensating for lost profits with super-loyalty of regular, high-profile customers and using partnerships with them in their marketing strategy.
- Selling virtual goods is another option. For example, if a person likes a game, this person will willingly purchase various goods in this game to proceed to the next level quickly.
- Getting a commission on sales is another relatively profitable monetization option, which is most effective in the case of a branded, already promoted product.
- Display and contextual advertising. Various options for the advertising promotion of software are great when the advertising campaign is carried out within the framework of fine-tuned, full-format tools. This can include, for example, native advertising, blog posts in major specialized media, etc.
- Partnership programs. This is a variant of indirect, strategically profitable monetization, which also increases brand awareness in the market.
The following monetization models characterize mobile products:
- Paid download. It is a simple, well-proven tool.
- The in-app purchases model is effective for software, the functionality of which allows you to make money on ancillary services, add-ons, etc.
- Paid subscription. This is also a well-known and understandable option of monetization, which is desirable to back up with really profitable offers for the consumer.
- In-app advertising. The popular, well-known model of monetization, in fact, may not be very effective since users have long been accustomed to such advertising and often simply “do not notice” it (the effect of the so-called “banner blindness“).
Analyzing all the possibilities of monetization for software, we can confidently say that it is possible to make money even on a fresh product that is just entering the market. At the same time, the product itself must be of high quality, in-demand, solving real customer needs.
Good, unique software makes it possible to choose options that will be in harmony with the program’s functionality, its marketing capabilities, and the target audience’s expectations. After all, in the end, it is not advertising that determines success. A bad and raw product will definitely not be in demand, so hiring professionals who will analyze the market and make your product perfect is the best choice.
