Featured Article from Software Licensing

Software monetization simply refers to the measures a software company takes in order to increase the profitability of their intellectual property. Therefore, every software monetization strategy is unique. Of course, getting the most value requires a slew of touch points, including packaging, control, management, and of course monitoring. So you need to build a monetization strategy. The best course of action? Don’t do it yourself.

The software monetization experts at Flexera Software explain why the DIY route is not for software producers, and the bottom line is this approach lacks what is really required: scalability and longevity.

To optimize a product, developers need to understand how customers will use them, but often times these developers don’t possess the ability to know what they should be tracking in the first place. Commercial software monetization solutions help developers identify patterns in a transparent and automated way. They can easily determine who is using what, when, where, why, and how, as well as what customers' preferred features are. If developers went in DIY, then this could very well be a step that is skipped, and one that could seriously hinder the bottom line.

Decisions around product packaging, sales, and marketing strategies affect each other and should be approached broadly. When software monetization strategies are implemented successfully, products are protected against possible threats and are packaged in a way that lets customers license them in the way that they need, all while offering the best opportunities for revenue generation.

Entrepreneurs are competent in monetizing ideas. If there are millions of software ideas on the market, there are millions of ways to advertise them. But what most business owners and mobile app development agencies lack is the ability and tolerance to identify the right strategy that is best suitable to generate revenue. That’s why getting a pro in your playing field is the best possible course of action.

What is your first choice? Earn revenue or gain more users? Charging a customer directly can reduce user downloads. What about perpetual licensing versus a subscription model? These are all questions that will help form your strategy, but as Flexera notes, you wouldn’t build your own payroll system, so why go at software monetization alone? The experts can help you generate revenue, scale for your business, and ensure that you’re in the game for the long haul.