Software Monetization Models Part I
January 23, 2013
Today every company strives for success. No matter whether it is large or small, the main task is to get an income. To try different approaches seems to be a good idea but it won’t work, if you target only a narrow market segment. In the modern world with the rapid growth of technologies development, that influences all spheres of human life, more an more companies present small, useful applications, which are made not for sale but to attract customers and to gain experience. Usually, such applications one can use for free, but sooner or later a question about monetization arises. Below you will find out what are the main monetization models and how to make money on a desktop application.
Nowadays, marketing industry offers different models of monetization. Choosing the right model, along with the proper software, may bring a considerable income for the company.
The main variants of software monetization are:
– Premium versions or additional functionality development;
– cross promotion and affiliate programs;
– popular applications sale;
– in-text ads or contextual advertising.
Plan your application development with two possible variants of its usage: free and premium.
Free applications should have a sufficiently wide functionality to come into notice. Do not expect that users will pay for the additional features right away. More often than not, the idea of monetization comes when the free application has already gained its popularity.
This is the most optimal variant, since in this case, to get the income you only need to consider and add new features to the Premium version. It is equally important to present the application in the most favorable light.
The main task here is to create the wide range of active users at the very start of your project. Accumulate satisfied users and make them addicted to your software. Complement and extend the functionality, both for the main and Premium versions.
When the functionality selected correctly, users start buying the application eventually, in order to expand its capabilities. While calculating application cost and desired income, remember that according to research, at least 10% of the users switch to the paid version.
Developing a Premium version it is not only the most profitable, but also stable and predictable way to monetize your ideas, earn user’s trust and respect, which will serve you in the future.
But there are still much more ways to monetize a desktop application. Interested? Follow the updates to find more interesting ideas and practical tips in “Software Monetization Models” Part II.