The 4 Keys to Software Monetization

For software developers, there is nothing quite like the feeling of having your software downloaded by thousands or even millions of people. While this feeling might be great, it won’t pay the bills and so it’s important to find a way to monetize that software. This is not only a very competitive industry, but people often expect to get the software for free, or they might go out and try to find a pirated version of your software.

At Somoto we offer several different methods to monetize your software, anything from charging per download, bundling 3rd party software into your own software, or placing a PayPal donation widget on your website. For now let’s go over 4 keys of software monetization.

Packaging your Software

Depending on the software that you are building, there are several different options that can offered to potential customers. A simple solution, one which requires no work from the developer and is of no cost to the developer or users, is to bundle the software with a 3rd party and receive payment every time the software is downloaded.

Another option is to add different values for different levels of use. In other words you can offer a trial or free membership, which grants basic access and they can level up to a premium membership and enjoy complete benefits of the software. There is a famous saying “Why buy the cow if the milk is free” however, if you give someone a taste of you are offering, they are more apt to pay for the full version.

Control your Software

The internet is crawling with hackers, and nothing is more frustrating than developing a great software, only see someone go ahead and reverse engineer it or flat out steal it due to weak IP protection. Protecting the software is just as important as the packaging aspect. If there is one message that everyone should take away from this it this – without having complete control of your software, you will lose out on any chance to earn your well-deserved money.

Manage and Monitor your Software

This is business 101, and is true regardless of what industry you are in, and that is to manage and monitor all aspects of the software. What is your distribution channels, is there a more cost effective way of getting the software out to the masses. How much do you know about your users? How did they get the software, how much time do people spend using it, what updates will be needed to keep customers loyal. You can never have too much information because: Knowledge = power and power = money.

It sounds simple, just package, control, manage and monitor your software, that’s all there is to it… right?